Jen Glantz says being hesitant to raise prices cost her business more and more each year.
- Jen Glantz is an entrepreneur and the founder of Bridesmaid for Hire.
- At the end of each year, she raises her prices for her services as a speaker, coach, and creator.
- She says 30 days prior to email clients with a specific price raise and effective start date.
This month, I have to do something that always feels a bit awkward: I share the news with my clients that I’ll be raising my rates in the new year.
I’ve been a solopreneur for over seven years, and for the first three, I kept my prices the same. I was desperate for new business and in an effort to hit my income goals, I was scared to increase the amount I charged my clients. This was a costly mistake, as it meant I wasn’t taking into account the increasing costs to run my business year after year or the value included in the services I provided.
After realizing I was working harder than ever but my bottom line wasn’t growing very much, I decided that I’d raise my rates each December.
Instead of increasing by a set percentage every year, I take inventory on the year’s business expenses, inflation, and all of the recurring time I invested to make my services better every month. For expenses, I calculate the costs of the software I use to power my services, professional fees, insurance, and overhead. I also look at my competitors’ prices to see how my offerings compare.
In 2019, I raised my prices by 15%, but in 2020 when the pandemic arrived and people’s income began to take a hit, I decided not to raise prices at all. At the start of 2021, I increased my prices by 10%.
In 2022, I’ve decided to increase my prices by 15%.
When it’s time to communicate the change in fees to my audience, I start off with an email to my mailing list of clients from that year. I try to send this email out at least 30 days before the end of the year so this change doesn’t come as a surprise to anyone.
Below is the exact template to use if you’re increasing your fees and want to let your customers or audience know.
Dear [client’s name],
One of our core values at [name of company] is to provide a quality and [insert another adjective] service to each and every one of our customers. When you do business with us, not only do we want to give you the experience you expected, but we pride ourselves on going above and beyond.
After reviewing our operating costs for [year], we’ve made the decision to increase our prices on [products and/or services] by [percent]. This change will go into effect on [date].
We appreciate you as a customer and are grateful for the business you do with us. If you have any questions or concerns regarding this price, please reach out. We’re happy to chat more about this with you.