RAISE YOUR PRICES: Work Less & Make More Money
[00:00:00] Start
[00:02:20] Raising Prices for Existing Clients.
[00:03:55] Attracting the perfect client.
What if you could make an extra $74,000 a month by just following these simple steps to raise your agency prices?
I know it sounds crazy, but just by increasing the price of your services to what they're truly worth, you can potentially be pocketing an extra $1,000,000 a year... just like the example I give in this video.
Look, I know price increases can be scary, but after working with 1000+ agency owners, here’s what I’ve found… Most agencies are UNDERPRICING their services. With just a few quick questions, you could raise prices by at least 30% WITHOUT losing clients... and I'll walk you through the process step by step.
Step 1: Raise Prices for New Clients
Start by raising prices for new prospects based on the value you provide. This involves evaluating the value and results the agency delivers. By understanding the return on investment (ROI) that clients are receiving, agencies can determine if their pricing aligns with the value provided.
For example, if an agency is charging $20,000 a month to a client but knows that the client is gaining $200,000 in value, it may be time to consider a price increase. Start by raising the prices for new prospects to reflect the actual value being delivered. This could involve increasing the monthly fee to $30,000 or $40,000 based on the client's ROI, aiming for a 5 to 10 times return on investment.
By demonstrating the increased value and results to new prospects through higher pricing, agencies can attract clients who are willing to pay for the quality of service provided. Once a significant number of new clients are onboarded at the new rate, you can have a conversation with current clients about adjusting pricing to better align with the value they are receiving.
Implementing this pricing strategy can lead to substantial profit growth for digital marketing agencies. By accurately valuing your services and adjusting prices accordingly, you can increase revenue and be compensated fairly based on results. This approach allows agencies to focus on attracting the right clients, providing high-quality services, and ultimately achieving greater profitability and success in the competitive digital marketing industry.
Step 2: Increase Prices for Existing Clients
After bringing on new clients at higher rates, you can then approach existing clients to increase pricing. This step involves having a conversation with existing clients to explain the value they have been receiving and the need to adjust the pricing accordingly. The podcast episode highlights a case study where a mastermind member named Dean successfully implemented this strategy and saw positive results.
Dean's experience demonstrated that by doubling the prices for existing clients, he was able to generate an additional $74,000 per month, resulting in over a million dollars in extra revenue annually. This approach not only helps improve your profits but also allows you the ability to focus on delivering high-quality services to a smaller number of clients while maintaining or even increasing revenue.
Overall, the episode highlights how agencies can leverage pricing strategies to drive profitability, enabling them to shift their focus towards growth and bringing in the right talent to further enhance their services and offerings.
