In last week’s post, we showed you how to determine your living (and desired) hourly wage. If you missed it, bookmark this post and then come back after reading Part 1.

This week, we’re diving into how you can set higher prices your customers are gosh darn excited to pay!

Get to know your market

If you’re a service-based business, going rates for your industry can seem as elusive as the perfect mascara.

But the information is out there if you dig deep Watson and ask for help. Join a creative entrepreneur group, like Being Boss. Ask for people to share their pricing (probably through a private message) — you’d be surprised how open creatives can be!

Ask yourself: what’s the highest rate people are charging? What’s the lowest? And what’s right in the middle?

Then see how your service/product compares to the competition. Are you offering more value but charging less? Charging more and providing less value? Go with your gut on this one.

Take this information and see how it stacks up against your desired hourly wage. Does this feel right? Is it fair to you and your customer? Does the market support these rates?

You might not be ready for the top of the barrel. But this exercise will help you understand the big picture and set realistic goals to work towards as you grow.

Create more value or add a new feature

Let’s be honest. Merely hiking up your rates only benefits you. I mean, you’re amazing, one-of-a-kind, and deserve all the monies! But your business doesn’t exist without the customer.

So, how will these new prices help your customer?

If you aren’t offering more value, a new feature, or leveling up your product, then your customer won’t understand why they should pay more for the same service. It’d be counterintuitive to their wallets.

So, get creative! What addon or new feature can you give customers to make the new rates exciting to them too?

Be transparent and clear

Surprises aren’t always fun. So, give your customers plenty of notice your rates will be increasing. A personalized email will work just fine. Make sure to express gratitude for their trust and loyalty.

And, most importantly, be honest and direct — but don’t apologize. Let your customers know you’re moving with the market, your level of expertise has increased, or your work is in more demand, etc.

Remember that pricing is fluid

Nothing is set in stone. And you don’t have to dive in head first. You can dip your toes in the water, one dollar at a time. If you don’t feel ready (or don’t think your customers are prepared) for a significant price increase, you can raise them strategically over a couple of months or even over a year.

It’s all trial-and-error too. Pay close attention to how your customers react to your pricing. If you’re booked up, then you’re probably charging too little. If work is inconsistent and unreliable for a few months, you may be charging too much. Find that sweet spot where you don’t feel overworked or underpaid.

Repeat after us: I can be creative and yield wealth too! We’re all in this together. And, baby, we’re worth it. Share this post with a creative entrepreneur whose art you think is worth more moolah!