If you want to raise your rate, one of the easiest paths forward is to raise the value of your service. Then, once you’ve increased the value, you can raise your price a bit, so you better capture that increased value.
An excellent first step is this thought exercise:
How can I make my service MORE valuable to my client? How can it save them more money or time or help them make more money?
If nothing immediately pops to mind, ask a handful of your clients (~3-5) about your service:
- What do they enjoy?
- Where they see the value?
- What else could you have included making it easier/better/more impactful for them?
Their answers may surprise you. For me, they often highlight an unexpected (or unanticipated) source of value in the service.
After you’ve talked to people and thought about the question for a bit, you’ll start to develop a hunch on where the value is. Then, you want to think about what you can do to increase that value and double down on the most valuable part.
Let’s talk through an example.
One of my first productized services was the Digital Outreach Plan, a report customized to the client’s needs and giving them specific, actionable direction and advice on reaching the right people in their target market. The deliverables included:
- A ‘do this, not that’ strategy
- A ~4-6 email sequence to send to their contacts
- A list of ~20-30 qualified, hand-screened contacts
As I delivered the service offering more and more, I learned from client feedback that the most valuable parts, in order, were:
- The list of qualified, hand-screened contacts
- The email sequence
- The strategy document
Why is that? Because the list of qualified contacts took the most work for the client to DIY. The Digital Outreach Plan was a time-savings service offering that helped the client avoid having to DIY the entire campaign.
With that nugget in mind, I started optimizing the service offering to increase the value. Specifically, I:
- Increased the number of contacts included
- Wrote a short guide on how to find and qualify new contacts with a VA
When I made those changes, the value of the service increased. When a client purchased their Digital Outreach Plan, they were receiving more value than before.
That meant I could increase the price.
What started as a $500 service offering increased in price. Most recently, I sold a Digital Outreach Plan for $1,650.
While the service now is more than 3x its original price, the level of effort required for me to deliver the service hasn’t increased 3x. It takes me about the same amount of effort to deliver as it did back in ~2017.
What changed to support the price increase?
I got curious about value.
I worked on the service to increase the value
I raised the price to better capture the value of the reword service offering
I rinse-and-repeated this process a few times over a few years