Every business owner needs to weigh a new fee increase against current client loyalty, and the risk involved. Most everyone has experience with using a service for several years that suddenly requests fees well beyond what is considered reasonable.
A steep rate hike is the point of no return for most customers. Before making such announcements, give serious consideration to your intention. Examine the pros and cons, and confer with trusted peers. You may even hold a focus group to gain further ideas.
Two options that come to mind:
When one type of program is in place, it’s easy to create more that will generate income on the sidelines. For example, if consulting is the primary practice, consider writing books and developing training courses to supplement the income.
The benefit to the multiple streams of revenue is that when one audience enjoys the first program, they will research the next and then the next. A mix will encourage new people to do the same and pretty soon, you experience a far larger audience than you initially enjoyed. Multiple streams reduce the need for a rate increase.
It’s far easier to receive more money with newer products and services than adhering to just one and upping the fee. As new services appear, the values are automatically seen by current clientele. And should they be satisfied with it, they will pass on good word of mouth to those they know. This process also grows admiration of your personal brand. And when you provide programs with others, it lessens the burden of doing everything on your own while extending the reach to new audiences.
Take quiet time to consider all the possibilities you might put into place to attract additional clients. Adding less cumbersome side streams of income may work to your benefit.
Some ideas include providing:
- Quarterly seminars at a local school
- Semi-annual informational events at an establishment
- Monthly classes in person or online
- Host a charity event
The activities keep you engaged with your intended audience. Also, as waves of clientele come and go, you retain possibilities in your pipeline.
Another serious consideration is to be on top of the latest trends. Determine if they are a fad or the latest in which you recognize a need to invest and learn.
Artificial intelligence is the perfect example of the newest trend, and chat bots are already prevalent online. The good news about being an early adapter of new ideas is that it puts you in a leadership role. Higher consulting fees become a new possibility.
Working to maintain a full funnel at all times is sales strategy at its best. It reduces worry and stress about the occasional client leaving. By interacting with people and offering value-add services in a variety of ways contributes to building a reputable brand. Throughout the business development process, you develop the type of recognition that develops sound long-term relationships.