I've had quite a few of my coaching clients ask me recently how to successfully raise their rates in 2011 -- which by the way, I think is a fantastic idea for many business owners (not all, but many).

This week, take a few minutes to determine if it's time to raise your rates and if it is, follow my simple steps for doing so successfully.

Let's start with determining if it's time to raise your rates.  Ask yourself these three questions:

1.  What is my competition charging compared to what I am charging?

If you are lower than your competition, why?  Are you offering a lower quality product or service?

2.  What type of value are my customers getting from me compared to what they would be getting if they were using my competition?

If your customers are not getting any additional value than they would be getting if they were using your competition, it's time to step up your game. 

By the way, adding value does NOT have to cost you money.

One of my clients owns a pet lodge in Virginia.  She adds value to her service by offering to administer medications to the special needs cats and dogs for no additional charge.  She also offers to take a complimentary digital photo of the pet owner with their pet and then emails the owner the photo.

At my firm, Clear Simple Marketing, when you have us build you a website, we add value to our service by providing you a comprehensive training on how to make changes and manage your website so you can easily keep it updated (no HTML skills required) AND save thousands of dollars in graphic and web design fees.

3.  What are my products and services worth to my customers?  What type of ROI (return on investment) are they getting and how much ROI?

The ROI your customers get may be peace of mind, stress relief, or weight loss.  Generally speaking, the higher the ROI, the more your products and services are worth. 

If you've determined it's time to raise your rates, follow my simple action plan below and you will successfully give yourself a raise.

Step 1:  This Week -- Start with your new customers.  Update your product and service menu so that all new customers are purchasing at your new higher rate.  Monitor your sales for a month to see if your new rate has impacted them.  Remember, even if your sales go down by 10%, if you have raised your rates by 11-15%, your income will have stayed the same. You will simply be working less.  This frees you up to go out and find new business at your higher rate, or to just enjoy the freedom of working less while earning the same pay.

Step 2:  In 30 Days -- If raising your rates for new customers was successful, the next step is to announce to your existing customers that you have raised your rates for your new customers.  Let them know that they (your existing customers) can enjoy the discounted rate that they are getting, for another two months (or whatever time frame you think is appropriate).   

Step 3:  In 40 Days -- Add additional value to the services and products you offer and announce to your new and existing customers what you added, then deliver on it.

Step 4:  In 90 Days -- Raise your existing customers rates.

Now, It's Your Turn. Go Get a Raise!