How to Get Your Old Clients to Pay Your New Prices
“are you running friendships or are you running a business?”
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Tell me if any of the following sounds familiar to you:
“I’m going to raise my prices and just charge the new people the new prices...”
“New people get my new prices but my long-term clients I still give them the previous price...”
“I actually have two pricing models… one for my new clients and one for my existing clients…”
There’s nothing more that irks me than hearing that.
So in this episode of The Anxious Creative Podcast, we’re going to be talking about how to get your old clients to pay your new prices. Without the stress and anxiety.
Keeping your old clients on a different pricing structure is doing a huge disservice for your business. And the only reason those clients aren’t paying your prices is that you’re too chicken. (Know that I’m saying that with the most kindness, compassion and empathy. I totally get it. I was a chicken too 🐔.)
What Are You Really Scared Of?
I totally get it. It’s a lot easier to charge new prices when your client doesn’t know any better.
More often than not we’re scared of how our clients may react. We can’t actually predict or know how they’ll react, but the fear that they might react badly is enough to keep us quiet.
You have to stop trying to be so much in control.
And I know that’s a lot easier said than done. I know that fear of being uncomfortable for 5 seconds so I avoid the discomfort and end us doing a disservice to myself and my business.
It’s even harder when we create such close relationships with our clients. So much so that we even refer to a lot of our clients as our friends.
While there’s nothing wrong with being friendly with your clients, it’s important to be careful when it comes to being friends.
Are you trying to be friends with everyone or are you trying to run a business?
Remember that business transactions are not friendships. And even though you may have friends and family who are part of your client list; unfortunately, those are usually the ones who aren’t as supportive.
People aren’t going to tell you to raise your prices when they benefit from you not raising them.
And although it’s uncomfortable to see someone’s reaction when you tell them about money, if you deliver it as exciting news it’s easier for them to get on board with it.
Integrity, Honesty & Transparency
I’m gonna give you some tough love with Dawn right now, m’kay?
Having a rate that you charge new clients and having a different rate to charge your existing clients is really unfair.
Think about it, if I was a new client and started talking with my friend, who happens to be a long-time client and we get started talking about prices. Can you imagine how crappy I’m going to be feeling once I find out my friend is paying less (maybe even a LOT less) than I am for the exact same service?
How would that make you feel?
If you want to create a business built on integrity, honesty and transparency, having two different pricing models isn’t the best way to do it.
It’s not as difficult as you might think to get those existing clients to pay your new prices, it’s all about having honest conversations. Not scary ones. Just honest ones.
It’s important to learn the skills to communicate with your clients. I’m making it real simple for you with a FREE script & email template, grab it here.
I want you to be able to grow your business, stop sabotaging yourself and stop doing a disservice to yourself and your business.
I know you want to continue to serve your clients for the long haul. And in order to do that you need to be smart about the way you run your business.
I know we’ve had some things said to us in the past that we’ve internalized and held onto. Things like you’re “just a hairstylist” or you “can’t do that”, but I want you to fight against that. I want you to prove them wrong.
Don’t let that get in your head and stick there and dictate how you go through your career. Don’t let the thoughts and the narrative that’s been playing in your head win.
Know The “Why”
You may have heard me talk about the career cycle. Although many of us think that careers are linear, when it comes to hairstylists, it’s important for us to know that our journey is a cyclical one.
Raising your prices, getting new clients, growing your business - these are all parts of the cycle. And they happen again and again.
Let’s be honest, when you start telling your old clients your new prices, it’s pretty guaranteed that you will lose a couple of those clients. But that’s okay! Because you know how to attract new clients and you know it’s a recurring part of the journey.
It’s also important to understand WHY your prices are what they are so if anyone ever questions them you can tell them exactly what the breakdown of your costs is.
If you don’t know why you raised your prices 10% then you’re going to easily cave when someone tells you it’s “too much”.
This comes with confidence. It’s important to have the confidence and to build that confidence. I like to imagine zipping up a suit of confidence and wearing that around, getting comfortable in it. Then one day, you won’t need the suit anymore.
Don’t fake it till you make it, but put that suit on until you don’t need it anymore.
Communication
I want you to continue to stretch and grow yourself so you can continue to get to the places you want to go and do the work you want to do. I want you to fulfill your purpose.
It’s important to remember to communicate with kindness, compassion and empathy. Show your clients that you’re doing something for them, not to them or at them. This is a game-changer.
I also want you to be excited about your price increase when you communicate with your clients. This really helps them get on board with it.
If you’re looking down at your toes, talking quietly and mumbling: “so next time your price is gonna be this… is that okay?” is not only going to make your clients confused, but it gives them the option to say that it’s not okay.
On the other hand, communicating confidently, with eye contact and excitement in your voice:
“I’m really excited to share with you that I took some new education recently, I’ve gotten a lot busier. As you might know, I’ve been doing hair for x years now. So I’ve bumped up to a new pricing. I’m so excited to share that with you because it’s thanks to your support as my client that I’m able to grow my business! Thank you so much for everything and at the next appointment your cost will be [this].”
This doesn’t allow them for an opportunity to say they’re not okay with it. It also shows them that it’s because of them that you’re growing and you really appreciate it.
The way we communicate with our clients is the biggest game-changer we can make in our businesses.
I want you to sit on this and think about it. I want to see how this helps transform you. Shoot me a DM over on Instagram @dawnbradleyhair.
Don’t be scared about having the conversation, I promise it’s not as scary as you think. Be okay with not having control over their reaction. But be prepared to have the system to explain why your price is what it is.
If you want to know more about how to come up with your prices and talk about it with your clients you definitely want to get on the waitlist for Rock Your Business.
Did you know that I also put out new YouTube videos each week? I’m sharing techniques, tutorials and a whole bunch of fun stuff. Go check that out here.
See ya next time, friend!
Go on, binge the latest posts (you know you wanna)…
