The Pitfalls of Raising Your Prices.

There's lots of talk among professionals about adjusting pricing for the coming year. Most all of it revolves around "I'm too cheap and not making any money, but if I raise my prices I'm afraid I'll lose what clients I do have!"

The fact is, when you raise your prices there are some issues you will have to deal with, both good and bad:

1 - You'll lose some clients who only came to you because you were cheap. These people are not loyal supporters and are only there to catch whatever scraps you let fall off the table. Their loyalty is based solely on you giving them the greatest amount of product for the least amount of money. They also tend to complain about your low prices and tell you that you're too expensive. They will want "a deal" on any extra product they purchase.

Downside - Without these clients you won't be as busy, but you also won't have to deal with people who waste your time and aren't willing to compensate you in return.

2 - If your work is where it needs to be, you will gain new clients who respect what you charge and will appreciate what you do and the quality of your product. They will view your work as an investment, not an expense. Treat these clients well and they will be yours for a long time.

Downside - You will still have to work hard to gain their loyalty, but not nearly as hard as you worked before just to get the cheap clients to be interested.

3 - You'll actually start making money. You may be able to purchase an upgraded piece of gear or a new background. You will probably have to stop making excuses about not being able to attend educational events and conventions because there will be enough money left in the checkbook, even after you pay studio expenses and yourself. You may actually be able to book fewer sessions and make the same amount.

Downside - You will have to open a savings account and put some money away during the busy times so there will be enough to pay the additional income taxes at the end of the year.

Don't be afraid. My favorite quote is from Star Wars when Luke was trying to use The Force to raise his speeder from the muck. Yoda kept telling him "Concentrate. Use The Force." Luke said "I'm trying!"

Yoda's famous reply was "There is Do and there is Do Not. There is no Try."

- David Grupa