Peter Shallard has a great article on the psychological reasons why raising your rates is actually a good thing for both you and your clients; and it doesn’t matter what field you’re in for this to apply to you. Check out his article here: http://www.petershallard.com/why-people-want-to-pay-you-more-7-reasons-doubling-your-rates-doubles-success/
Here’s a taste before you leave:
1. Higher prices increase customer focus
When you charge more, your customers pay more attention. Trust me – I’m a therapist. I’ve often joked that a Quit Smoking therapist need only charge $7500 a session to guarantee success.
2. Big transactions will ignite your motivation
When you’re selling a big ticket item, you’re going to get fired up. When the unconscious mind knows that a single sale could have you in caviar and cigars for months, it flips the motivation switch.
3. Being expensive cultivates an aura of expert and elite status
When you have high prices, something magical happens. People assume you’re the bees-knees. You start to become known as the place to go for top-end, elite and awesome
4. You’ll make more money by doing less (aka “margin is everything”)
Overnight, he had cut his workload in half. His revenue was the same but he was making more money because he only required half the inventory. His overheads pretty much halved!
5. Big figures attract big spenders (your customer demographics will get exciting)
There are a certain group of people who will pay more for the little extras. These people will intuitively gravitate towards good customer service, style and speed. In other words, they want the best and they want it now.
6. As prices go up, customer issues and complaints go down
The more you charge, the less debt collecting, refunds and general hassles you’ll have to deal with. The customers who make the decision to shell out for your pricier product will take it upon themselves to be better educated about what you offer.
7. Big rates motivate you to over-deliver (and customers will thank you for it)
Increasing your rates overnight will make you sweat with the need to be more awesome. You’ll be petrified that you’re not “worth it” – that you’re somehow not awesome enough to have big prices. This fear is a good thing.