Should You Raise Your Prices Now?
Posted June 16, 2008 by Margie Zable FisherEveryone’s worrying about money in this down economy – so why did I recommend to the owner of another P.R. firm that he should raise his retainer fees? Because he does what so few fancy New York firms do – he actually exceeds client expectations by getting lots of national publicity for his clients.
You might be wondering…
- Why I’m recommending another firm
- Why I’m talking about price when I should be writing about Public Relations?
Here are the answers:
- I recommend other firms that do great work if they are not a great fit for me and my team
- The price you charge provides a strong opportunity to create or change a perception in the marketplace – which has everything to do with P.R.!
Now, you need to closely examine your product or service and determine if you are underpriced.If you are, you can actually be hurting your sales, because people are worried that you are not as good as the person who charges more.
So, if you’re underpriced and want to make an impact on the marketplace, consider raising your prices.
Even in a down economy, people value top notch products and services.
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Your comments as always are sound Margie.
I would like to add, if I may, that PR firms should move away from retainers in which businesses don’t know if they are getting coverage for their payment, to a pay for quality price.
I tell my clients that, although I can’t guarantee publicity on a given media outlet on a given date and time, that the coverage I will proivide on a monthly basis will exceed their expectations and guarantee that if they do not like my efforts, they do not have to pay me.
OK maybe I sound a little bold, conceited and maybe stupid, but so far, none of my clients have ever asked for a refund- so making a guarantee to your clients that they don’t have to pay you- has paid off for me. It has changed the perception of clients who had no idea who I am to clients who will be loyal to me for hopefully years to come.
Raising prices are fine- if the quality of the work remains high.
While I agree we should hold value to what we do as PR practitioners, we also have to recognize our competitive advantage, especially compared to the big firms. I managed a practice at a big firm for several years and in tough times you’ll be suprised how low they’ll go to get work and keep it going. If we elect to raise prices, you have to be prepared that a client will walk away, which may not be a bad thing. I personally think a little “extra value” for clients right now, i.e. a few bonus hours, demonstrates your commitment to working with them in good and bad times. Further increasing prices…not sure what message that is saying and on what premise? Makes me think of the oil companies.
Your comments are right on target, Margie. I”m a Health and Wellness professional here in Los Angeles and have been in the business for 20 years. While there are a lot of personal trainers here, my services and expertise go way beyond just that of “working out” and by keeping my hourly rate at the higher end of the hourly fee scale, my clients believe (and rightly so) that you get what you pay for. I do, however, work with those who want to get in shape with special discounts for packages and/or for working less than a full hour. There’s always a way to give people a deal in this economy without selling yourself short!