In the news, at the petrol station, whilst opening our latest energy bill, or when going to the supermarket – the reality of rising prices is all around us. If we were hoping for some sort of respite having weathered 2 years of the pandemic, it doesn’t seem to be turning up any time soon. This is a reality we can’t ignore, but how do we react as business owners in the health and wellness industry?
Well, having coached countless Clinic Owners, Therapists and Pilates Instructors, both before and after the pandemic, it’s obvious that one of the biggest challenges facing business owners is this – how NOT to make decisions for the business from a place of fear or worry. And perhaps the biggest decision relating to this is raising prices in an economy where the cost of delivering your service is rising!
It’s time to address the elephant in the room. It’s time to look at your prices.
Understanding Your Numbers
So, how much money are you actually making? What is it costing you to deliver that Physiotherapy follow-up, or that one-hour Sports Massage, or that Pilates class? Understanding the numbers in your business can feel like a huge task, but when you are really clear on the cost of delivery, it can influence your decision around pricing.
How did you decide what to charge? Did you look at what everyone else is charging and charge the same or less? Did you look strategically at your business model and look at gross profit margins? It’s ok if that answer is no – it’s tough trying to juggle seeing clients, marketing the business, and keeping everything spinning with the family – but it’s important to now take a step back and properly assess things.
Feelings Of Fear & Panic
When coaching clients and discussing with them the cost of services and potentially increasing their prices, it always evokes a huge feeling of panic and fear. Fear that clients will leave, fear that everyone will think you’re in it for the money, and fear of being perceived a fraud for charging that much for your service. But there’s also a fear around what if you do start to make more money and grow – how will you handle that?
Our relationship with money is exactly what is keeping you charging your current prices – it’s nothing to do with whether or not you’re good enough or skilled enough. When you level-up your idea of what’s possible, and decide to really go for it, you open yourself up to the means to accomplish it as well.
Rule 1: Come from a place of abundance not lack!
When planning a price rise, don’t focus on how many clients you will lose as a result. For instance, I always say to clients, raise your prices by 10% and 10% of clients can choose to say no and you’re no worse off, but now you have 10% of your time back to welcome new clients who are willing to pay your new up-levelled price.
The only reason you should feel bad about money is if you’re not delivering on the service or product you said you would. VALUE comes before success. Lead from a place of value and the money will follow.
A great quote by Marianne Williamson is: “Having money is like anything else; a tool. And if you see it that way, making money is not just about you, but about the way that you can play a part in the dynamic by which money is used for the betterment of all things. Having money is not only a blessing but a responsibility.”
Rule 2: Get clear on where you are at!
One of the first things we do when working with clinic and studio owners is get super clear on financials, both personally and professionally. This immediately takes the anxiety out of all your business decisions, helping put an end to those sleepless nights and worries. Remember, if you don’t manage money, money will manage you, so commit to taking a look beyond the bank balance.
Rule 3: Get clear on where you want to be!
If you don’t know where you’re going, how do you know what to charge, how to work with clients, and how to create a sustainable business model? You don’t, so start from where you want to be and reverse engineer your pricing based off of this. Getting clear on where you want to be (and deserve to be!), will propel your business forward by years.
Rule 4: Raise Your Frequency
Rule 5: Stay In Shape!
Are you ready to take action?
For those of you wondering how to raise your frequency, change your money thermostat, and change how you work with clients, meaning you can charge more money, deliver better outcomes, and work less hours, then join me for a complimentary coaching call. We will spend an hour together, digging deeper into your pricing, money mindset and more.
To book your call, simply head on over to this page.
Thanks for reading!
Katie Bell
CEO & Founder of Thrive Health & Wellness Business Coaching
Strategic Coach
