#86: Tactical Tuesday: When, Why & How to Raise your Rates

Overview:

Jason A. Duprat, Entrepreneur, Healthcare Practitioner and Host of the Healthcare Entrepreneur Academy Podcast provides valuable insight on how to determine when you should raise your rates, why you should increase your rates in the first place and how to effectively calculate the prices for your services. 

 

Episode Highlights:

  • Jason explains what ‘imposter syndrome’ is, why it causes people to resist raising their prices and how to avoid it. 

  • As long as you’re gaining more experience and adding value to the end user, it’s okay to  raise your prices to keep up with inflation. 

  • Most often, you can raise your prices steadily instead of aggressively without pushing your core customer base away.  

  • Entrepreneurs with massive followings and respected levels of expertise are better  positioned to double their rates. 

  • Jason cations If you wait too long to raise your prices, you might get stuck having to make a sudden drastic rate increase to stay in business.  

  • When you raise rates, it’s a good idea to offer a grandfather clause or discount for long-term customers. You can do this by letting them know a price increase is coming up to a full year in advance.  

 

3 Key Points:

  1. Imposter syndrome is a psychological pattern where somebody doubts their own accomplishments, knowledge, skills and value. It causes them to feel as though they’re  defrauding people for charging too much for their services or providing advice. 

  2. Minimally, you should raise your rates to keep up with the cost of inflation, which is 2-3%.  

  3. There are two rules of thought on rate raising: go out and double your price or raise slow and steady i.e. 5-15% annually. 

 

Tweetable Quotes:

  • “A lot of people, especially as a service provider, have a major problem with undervaluing the services they provide. It’s an actual phenomenon known as imposter syndrome.” – Jason A. Duprat

  • “Whatever your service is, you’re obviously providing value and over time, you’re getting better and better as you get more experience at what you’re doing. So you need to raise your prices, absolutely, 100%.” – Jason A. Duprat

  • “Raise your prices slowly and steadily. In most situations…there are no definites in anything but this probably is the way most should go. Raise your prices slowly and steady, anywhere from 5-15% per year.” – Jason A. Duprat

Resources Mentioned:

 

#HealthcareEntrepreneurAcademy #HealthcareBoss #healthcare #entrepreneur #entrepreneurship #impostersyndrome #addvalue #pricingstrategy

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