They say that pricing power, your ability to keep strong prices over the lifetime of a client relationship diminishes with time…
I can’t say this is true…
Looking at my own experience and the experience of my clients
I have to say that pricing power CAN diminish over time if you want it to
In most cases, I’ve seen pricing power increase over time
But this isn’t to say it was simply a choice
You see, most of my clients come to me with their existing clientele that they priced, in their words:
“too low”
Now this is fine but the magic question becomes:
“How do I increase prices without sticker shocking them?”
The answer is dependent on you.
How you show up to the engagement
The energy you put into the relationship
The tangible ‘wins’ and the experience the client has with you
In short:
You have to earn the right to increase your pricing power.
As you fulfill the engagement and build trust with the client you will naturally (at least I hope you will naturally)
Learn about other key problems or situations that the client is facing (and ideally these problems fall under the realm of your expertise)
With the right relationship, energy and track record with a client,
offering to solve their new set of problems WHILE ALSO increasing or maximizing the original investment they made with you
Is a simple, yet effective way to increase your pricing power of the course of your relationship.
And you can repeat this for as long as you want or as the relationship naturally matures as a client that may not need your services any longer.
In short:
Pricing entropy is a choice.