Yesterday’s announcement about rising energy prices was a crushing blow to millions of households across the UK. Britain is in the midst of a cost of living crisis and it doesn’t look like it’s going to get any better any time soon. Prices are going up, Boris Johnson has raised taxes and energy bills are at a record high. Inflation has returned to the UK economy with a bitter sting and is expected to hit 7% which is well above the rate the average wage is rising at.
What does that mean for the self employed? We set our own wages. How do we get around the cost of living increase? We have to put our prices up.
For many people this is going to be extremely difficult. Not in practical terms but mentally and emotionally. It’s gonna bring up all your money demons. All you’re icky limiting beliefs.
So here are 7 reasons you need to increase your prices;
- Energy costs are increasing
- Taxes are increasing
- Food prices are increasing
- Fuel prices are increasing
- Public transport fares are increasing
- Mortgage repayments are increasing
- Broadband and TV costs are increasing
There’s no way around it. The cost of staying alive is going up. The costs of running your business are going up. We are all between a rock and a hard place. Many are faced with the choice between food, heat or light. You may find yourself having to choose between increasing your prices or going out of your business.
People are not going to stop buying. Well, some people might. But you don’t owe anyone affordability.
When we first went into the pandemic, many in the private sector went into panic mode. They decided that no one was going to buy and that it was tacky to promote a business in the middle of a crisis. 2021 was my best year in business by far and I wasn’t on my own in that. And far from taking advantage of a difficult situation or leveraging peoples misery all I and thousands of other business owners did was to continue providing solutions to people with problems.
I get that there were a lot of businesses couldn’t do the same.
So how do you put your prices up without alienating your entire customer base?
- Communicate
Let your customers know that a price increase is coming, how much it will be and when you expect to implement it.
- Take the emotion out of it
Increasing your prices is not an emotional decision, it’s a business one. What would a CEO do to ensure the survival of the business?
- Increase your prices regularly
Raising your prices by 10% at a time at regular intervals trains your audience and your clients to expect price increases. Remember when petrol was 75p a litre? We expect the price of the things we use to increase. Your services are no different.
- Don’t make this about you
You’re not greedy. You’re not cheeky. You’re not grasping. Do some money mindset work. What stories are coming up for you when you think about increasing your prices. Pay attention to your thought processes. Is it helpful? Is it true? Is it time to let it go?
- Understand that not everyone will come with you
Not everyone will want to pay your new prices. That doesn’t mean you’re wrong to put them up. And what would you rather, less work for more money or more work for less money? When I sold my 121 mentoring places I decided that if I hit my target of five I would offer one place pro bono. There is nothing stopping you from giving discounts or doing pro bono work where you see fit, after you’ve paid your bills. If you can’t afford to run your business you can’t serve anyone.
If this is what you worry about it’s going to leak out into your social media content. If it’s really bad it’s going to stop you posting altogether. Now I can’t take away your limiting beliefs or your emotional baggage overnight BUT I can strip it out of your copy. I can help you create a message that sounds like you, tells your audience why they should work with you in a way that means you can hang onto your integrity.
We won’t create false confidence. We’ll bring your best you to the surface and turn it into a written message.
The Social Media Mastermind is open to new members right now. If you need help navigating this next part of your business email me at clair@upwriteonline.co.uk and let’s get started.