PSU Insight

Setting Your Fees and Prices

How to Increase What You Charge

So you certainly don’t want to compete on price. But what about going the other direction — raising your fees? After all, there are a multitude of reasons why you might want to charge more, not less. But your customers may not share your enthusiasm for raising your prices. How can you justify doing that? There are several approaches you can try:

  • One obvious way is to simply raise your prices. After all, all kinds of things go up in price — why not your own fees and prices? Of course, you don't want to lose business when you raise your prices, so it's important that you stress the benefits of hiring you or buying your resource. Increase the perceived value of your resource or speech by defining its benefits and making sure that your prospects understand the benefits thoroughly.
  • You can also improve your product in some way. (This doesn't work especially well with keynotes; but you can add new topics to your training programs, you can add material to your DVDs or workbooks, and so on.) When your product is "new and improved", it's much easier to justify a price increase.
  • We earlier discussed the preconceived value of your product. If your resource is locked into a particular price range because of its preconceived value, redefine what the resource is, so that it has a new preconceived value... or no preconceived value at all. (Having no preconceived value also increases the uniqueness of the resource, giving further strength to a price or fee increase.)

Obviously, if you have quoted a particular fee for a program, you should continue to honor that fee, even if you raise your prices. That's why it's important to put a "fees valid through [date]" notice on your Fee Schedule or program proposal.