November 28, 2022

The One Question You Must Answer if You Plan a Price Increase

“What value am I giving?”

It doesn’t matter how much your costs are rising. It doesn’t matter that you “need” a price increase to meet a target for your business.

Moreover, since the value in this question is the value perceived by your clients, not your own opinion of value delivered, it means that you must have had some inquiring dialogue with your clients along the way.

That on-going conversation needs to be more than skin-deep, too. An effective value conversation reveals client perceived value that’s both tangible and intangible.

If you’re having that dialogue, then you know how you stand with one vital measure:  do your clients perceive the value they’re receiving to be greater than the price they’re paying?

If that’s the case, and only if that’s the case, can you start thinking about a price increase.

 

 

Image created using Craiyon (Formerly DALL-E Mini)

(This blog post was also posted on LinkedIn.)

©Ray Business Advisors, LLC and John Ray

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About me: I help solo or small professional services firm owners with the confidence and positioning necessary to improve their pricing and change the trajectory of not only their business but their life.

I have a podcast called The Price and Value Journey, which features interviews with industry leaders and audio versions of my blog posts. You can find the podcast on your favorite podcast app.

I also have a book coming out in 2023:  The Price and Value Journey: Raise Your Confidence, Your Value, and Your Prices to Grow Your Business Using The Generosity Mindset.

For more information, go to PriceValueJourney.com