As a coach, how can you justify raising your fees when every day, people are losing their jobs, homes, and their savings, left and right?



What happens if you raise your fees and end up alienating your market? Worse yet, what if you raise your fees and you tank?

We're living in an environment of fear. Before you throw in the towel and resolve to do nothing, keep these three things in mind:

1. Recognize that we live in a reactionary society. We are rectors. We react instead of respond. We'd rather be spontaneous than plan ahead. And, when a crisis is at hand, we over-react.

2. It isn't that people don't have money, necessarily. It's that people are being judicial in their spending.

3. Keep your eyes on the money. There will always be people who have money. When unemployment is at 7% that means that 93% of the market is gainfully employed.

The Case for Raising Your Prices

Although the overall strength or weakness of the economy may seem like a logical way to decide to raise or not to raise your prices; it isn't. What your clients will pay for your products and services has little to do with the economy. What your clients are willing to pay has to do with your perceived value.

If they perceive you as offering something that they really need, they will pay you for your service, regardless of the price.

So, should you raise your prices in 2009?

It all depends.

Keep in mind that when the economy changes, the kinds and types of products and services that become "in demand" change, too. In tough economic situations, it isn't so much about supply and demand; it's about solution and demise. If you are able to supply a specific solution to keep a client from facing demise, then the case for raising your prices can be made.

Consider this angle: Whenever the economy slows, there is always a need for new and different coaching services. Instead of raising your prices on your current services, consider adding a new information product to meet the emerging need. If you can do that, then you will have increased how your clients see you and perceive your value while creating another revenue stream for yourself.

Raising your fees this year takes careful consideration. On the one hand, you don't just want to quickly dismiss the possibility of raising your fees. However, you don't want to price yourself out of the market by arbitrarily raising your prices. Consider the two thoughts put forth in this article. Then, decide for yourself if you can establish a direct link between raising your prices and your able to supply a specific solution that will increase your client's profitability in the emerging economic market. If you can, then you're justified in raising your fees this year.