You have probably thought about raising your prices. Actually, raising your prices is the easy part, right? Getting people to pay higher prices is a different story. Here are some things to consider and the #1 way to actually make your higher prices stick.

Yes, the value of your products and services has to be high.
Yes, you need proof that your products and services get results.
Yes, it helps to have social proof about how great your products and services are.

But none of these things matter unless you find the people that can afford your higher prices!

That’s the #1 way to raise your prices! It’s to find the people that can afford your higher prices in the first place. Think about what circles you run in. Think about who is referring you business and what kind of people need to be referring you business. Where do the people that can afford your higher prices hang out, network, and live?

Some products and services these days are just harder (not impossible) to show a high perceived value. Look at travel agents and photography as examples.The perception is that anyone can do it and technology has definitely made it easier. But even if you are in an industry selling a product and service with a high perception of value you have to run in the circles that have the money to pay your higher prices!

Yes, I keep getting better at what I do but how I keep making more money is finding the people that can afford to pay me more of what I am worth. Notice I focused on my value which comes from the results I get for people as much as finding the people that can pay for those results.

I constantly train my team and remind my team that we are looking for 3 things after we know a prospect would benefit from our products and services.

  1. Do they have money to afford our sophisticated products and services?
  2. Do they have the ability to make more money with our high end products and services?
  3. Do they have enough pain that they are willing to change what they are currently doing?  (some people have so much money in their mind that they become satisfied with where they are in life and business)

*Notice I didn’t mention the motivation that comes from the positive. People tend to like the carrot but obey the stick.*

 

If you want to raise your prices and actually get paid more make sure your sphere of influence and the circles you run in connect you to those more profitable prospects.

 

I can make a hot dog stand the best hot dog stand in the world but they will most likely never be able to afford my services. (sorry, I have nothing against hot dog stands and I’m sure someone will now email me about about a really profitable one). Do you see where I am going with this?

 

When I was the CEO of Guerrilla Marketing we attracted mostly people that didn’t have very much money trying to save a buck. This wasn’t good but luckily we made it all up in the volume of small ticket sales like books.

 

My Icon Builder Media company that I launched out of Beverly Hills has the opposite feel, approach and attraction. It’s more with less and people get bigger results from a more customized full service approach.

 

Here is where I will offend people…

 

I spend most of my time in cities like Los Angeles, Newport, San Diego, Tampa, Chicago and New York City. Because of the job market and the housing market in those areas people don’t flinch when I quote my prices of thousands and tens of thousands of dollars. I talk about a $15,000 package in Detroit and they compare it to buying a house but Santa Monica they compare it to a house payment.

 

It’s a just different mentality.

 

Yes I have a fair amount of clients in Salt Lake City, Phoenix and Orlando but they typically live in the best areas of affluence.

 

My best clients are not everyday small business owners and random entrepreneurs. Let’s face it, most of those people are broke. My best clients are high end dentists, chiropractors, attorneys, real estate investors, agents, doctors, financial planners, best selling authors, paid speakers and media celebrated experts.

 

You CAN’T sell Cartier at the County Fair…but you CAN sell Rolex on Rodeo Drive.

 

You may not need to change what you are selling, you may need to change how you are selling but you definitely have to change who you are selling to if you want to raise your prices.