Well, hello friends. This is Kimberly. It's episode 333, and I'm so thankful that you're here today because this is going to be a great episode. We're talking all about how to handle price increases when it comes to your business. Now, there's all types of price increases. They're the ones that you have to raise for your business. Like you have to raise your prices if you're a designer, a stylist, uh, you have products, services, and you have to raise the price, or the price increases that you have with the supplies and everything else you buy for your business. So we're going to talk about all of that today because it's very hard as a business owner. I know it often breaks your heart to have to raise prices on your clients and customers, but it's something that has to be done and you've got to be able to do it confidently so you can move forward with your business, keep those loyal clients, and keep your business running. But how do you do that? We're going to talk about it today. If you're new here, welcome. This podcast exists to share real stories, wisdom, and guidance for turning your passion into a business or work that is truly fulfilling and impactful. I've been an entrepreneur for 26 years, and I can tell you right now, there is nothing better than using your God-given gifts to make a difference in this world. And I am so glad that you are here. If you're new, make sure you hit subscribe because I don't want you to miss out on any future episodes. And you'll get like a notification in your podcast app. Like if you're listening in Apple Podcasts, it'll just tell you that I've dropped a new episode. So today we are talking about pricing. And when I say that, a lot of you cringe, like you can just like feel it in your stomach. Pricing is hard, especially if you offer a service, it's hard because sometimes you're kind of just forced to charge like the market rate versus what you feel you're really worth, or you have to charge more and it's scary to you because you're like, I feel bad for my clients, or maybe if you have a product business and you've had to raise your prices, it's really, really hard. So many of you know, and those of you that are new don't know this, but I owned my own online gift boutiques for they were 16 years online. And then three years before that, I was doing like pop-up shows and everything. So I started my first online business in 2003. Okay, y'all. Yes, I'm a dinosaur. It was a blast. It was amazing. It was, it's, it was one of the most fulfilling things I've ever done. This podcast, I have to say, is probably the most fulfilling thing in terms of my work. But um I had those and I had price increases, but even through all those years, it's nothing like what's happened over the past few years. Like nothing. It's crazy. I have never experienced it. And here's another true story about that is that, you know, I had my online gift boutiques, and one of our best-selling items was priced at a certain price. I'm not going to say what it is because I don't want the manufacturer to think I'm being ugly or anything like that. Cause I'm not. I just want to say we had a product that was a bestseller. It's a kid's item. Okay. It's a kid's item. And we sold it for years and years and years. And then my daughter, for those of you that have listened to this too, had started about you started thinking about, you know, re rebirthing that business and doing it just kind of here locally so she could do little shows with her friends. And we were looking at the pricing, and I knew the things that sold the best back in the day. And so I'm like, we should sell this thing because this will be awesome. It sold really well for baby gifts. And wouldn't you know, since I've closed my business six years ago, seven years ago now, the price has doubled for that item, which means it's double the price. It was like something we sold for$56, and now it's going to have to be$112. And I'm just, I'm shocked. And I think it's all kind of happened after COVID and all that. And I'm just like floored. So I can only imagine those of you that have other types of businesses, and I know some of your supplies have gone up quadruple. I've heard that from hairstylists. They have said like the some of their supplies, and again, I've never been a hairstylist, so I don't know all the ins and outs of your business, but my heart aches for you because the costs are just exorbitant and you have to eat everything. And then the the leases have gone up, all the rent, um, everything. And then for those of you that are selling on Etsy, or maybe you have your own website and you have products, shipping has gone up to ship to your customers, and um all your supplies have gone up. So it's just insane. It really is. And again, I just want to give you all a hug right now because I know how hard it is as a business owner. And you just want to do what you love. You want to provide your product or service in a joyful manner and be happy and proud and feel good about the transaction too that you're making with someone because they're giving their hard up, hard-earned money to have you offer the product or service. And you just want that and you want to be able to make a living doing what you love, right? And so I get it. It's so hard. And today let's talk about it. Now, usually I have like three simple steps, you know, like it's real organized. And you're like, this is gonna be simple. Today is just gonna be basically just like a ton of tips thrown at you. I mean, actually, when I say a ton, it's not a ton. It's not a ton. Like, I see probably seven here really good tips. So you may want to take notes, or you can look if you go down in the uh show notes down below, there'll be a link that takes you over to my website and it will have these listed out and you can know these tips, but I think you're gonna be able to remember them. Otherwise, like open your notes up or something so that you have some thoughts and you don't forget. Because if you're like me, you hear stuff on podcasts or audiobooks and you're like, yes, and then you go on with your day and you totally forgot what that was. So it's why I take notes in church because I hear amazing things in church. And then I get home and I'm like, wait, what? So I started, you know, taking notes in church a few years ago and it's been amazing because then I go home and I go, Oh yeah, he was talking about this, this, this. Anyways. So, first, what I want to do is give some shout-outs. I had posted a reel on Instagram. So if you're not following me, make sure you do it now. It's start with Kimberly Brock, go on there because I'll post stuff like this periodically. And, you know, I'm not the best at posting all the time, but I've got some great ideas for stuff coming up. So you'll want to be a part of it. I asked, you know, what were your best practices or best tips as a business owner for when prices increase? Either the prices that you have to charge increase, your supplies increase, all of it. And I got some great responses. And so I wanted to give some shout outs today before I go through all the tips that I wanted to share as well. So here we go. So the first one here is Amanda underscore Richardson underscore 524. Amanda, this is awesome. I know Amanda. She's been one of my clients and she is amazing. And she's got an Etsy store and a website. Okay, so she sells some of her things on her Etsy store and some of her things on her Etsy Etsy store. And she had some good tips here that you can buy more supplies in bulk, right? Instead of just buying supplies as you need them, bite the bullet, buy them in bulk, get the cheaper rate, right? You will have to hold those supplies, taking up room and whatever kind of office or business space that you have, but you're getting a better value and you can save money, right? If you're dealing with increased costs, that is a good way to save on supplies. Also, she talks about just the overall brand and experience that people have felt with you. If they know you're amazing and they always get great service, then you don't as much have to stress about price increases, okay? You don't have to as much stress. So I like that idea about the supplies. I thought that was really good. And also, she had made a point too for anyone listening that has an Etsy store that Etsy's um shipping has increased and they require free shipping. And so some of her stuff was heavy and she didn't want to have to increase her regular price of her products, which you could do actually on Etsy, but she didn't want to do that. So she only has certain things that don't cost very much to ship on Etsy so that she can keep the free shipping. And she has everything else on her website. So think about that. You can kind of split it up between the two. Oh, here's a good one. This one was funny. I should have read this one first. It was from Hey Maggie's dad, and his biggest tip for dealing with price increases. Are y'all ready? This is the biggest tip. Free hugs. Free hugs, free hugs to all of your clients and customers who are stressed out because they're having to pay more. And you can just give them a free hug. Hey, I say wear a t-shirt that says free hugs. You could wear a baseball cap, you could have a coffee mug that says free hugs. I thought that one was funny. It was cracking me up. It is true though, right? Um, this one is from Margaret Darling, and I love this. This is great. And she says that she's an executive coach for nonprofits, and she always puts it in the contract that the pricing is just for this year. So I think that is smart because sometimes you don't even think about that in the future prices are going to go up for you or costs are going to go up, your your service is going to per be perceived as greater value. And so to put that in the contracts and state, it's just for right now only. I think being giving it a time constraint is really smart because then if it goes up next year, you can say, yeah, that contract was for last year, right? Billy Curie says the best way to handle the price increases is with the truth. And I agree with the truth. I think that's smart and simple, just like the free hugs. It's good. It's good advice. Um, another one. This one is robpizuti.com. Thank you, Rob, for your comment. I like this one. Um, I think this is a he, it's Rob. And it says, I post and print a five-month notice to my clients. I love that. Five-month notice. That's awesome. Love it. Tell your people ahead of time. We're going to talk about that here in a minute. Uh, the next one is Mimi Haru Salon. So it's Mimi underscore Haro Salon. And it says really understanding your value is key and really soaking in this concept. And I agree with this. Um, increases won't be as hard or uncomfortable when your client or customer truly understands your overall value and sees your value. So then you have to ask yourself, how are they perceiving my value? Are they? Make sure you are explaining it, sharing it, providing good service. So, Mimi, this is good. This is food for thought. Everyone should think about this: that the price increases won't be as hard on you or the client if the client or the customer sees your overall value. And Mimi, um, obviously, as a hairstylist, she's the one who's saying that. So I think that's great. I do think when you explain the costs of rent and insurance increases and things like that. This is from 7343 Julie. I totally agree. Like you can explain exactly what the costs are because I think when people know what the costs increase are, their eyes are open and they feel empathetic. They feel sympathetic, right? This one, I loved it. Anne Mare M-A-I-R 17. This one is a good one. Says uh she, I think it's a she. She is a because it's spelled A-N at the beginning. And I wasn't sure if that was short for something. But, anyways, I'm gonna assume it's a she. The former salon owner, when a stylist is promoted to next level, I create a celebration. I love this. Can y'all imagine this? She said they have a framed announcement with the new price structure out, and the clients are happy. I love this. This is genius. The clients are happy and you feel good. Like if I sit down, I'm getting my hair done, and I see that that my stylist was promoted because she got a new certification, or she's been there a while, or she'd served so many people. I think that's amazing. That makes me feel good, that I'm in good hands. So it is. It's she said it's hard to complain about a price increase when you're celebrating in their accomplishments. And I totally agree. This is awesome. Okay, my last one here. Carly Ray Cody. Thank you so much. You've been so kind, by the way, and everything you've been sharing. And I love that you and I both agree that conversations like this need to happen. And I hope to have conversations like this with all kinds of industries here. And I know, Carly Ray, you are hairstylists, so I love this. This is really good. So everyone listen. So she said that, you know, when you have price increases, you may lose, for example, for hairstylists, 10 to 20% of your clientele. And that just makes my stomach hurt. But you could, depending on how much the price increase is. So let's say you you lose that many clients. But if you start doing the math, people, if you start doing the math, you will see that you will be making 10 to 20% more on every service, assuming you raise it about that much, right? So you're making that much more on every service. So now you have 10 to 20% more openings that are available for new clients that will start paying at the higher rate. So when you do the math, it may not be as detrimental. And in fact, it could be more advantageous than you ever realized. So of course you are sad to lose clients. You're sad to lose customers, but you have to realize maybe now they don't fit into the niche of the people that you are best suited to serve because you have to do these prices, right? And maybe they're better for some other location that's less priced. But if you're providing good service and they all understand it, then I think realizing that when you actually do the math, it may not be as bad as you thought and to offer really good service. So, Carly Ray, that was amazing. So this was awesome having y'all comment. Watch out on my Instagram. I will be doing more things like this because I think it's imperative that we learn from each other because I think when people communicate better, it's just like in life with family, spouses, kids, when we communicate better, there's less friction. Everyone gets along more, everyone supports each other more. And everyone wants to support you. They want to support you as a business owner, you want to support your clients, it goes vice versa. And so, hey, this is amazing when we communicate and everyone understands, okay? Okay, this is awesome. So I'll continue to do this. If you're not following me yet on Instagram, it's at start with Kimberly Brock. So make sure you follow because it'll be other fun stuff like this. Okay, so let's get down to it. Let me share the tips that I have for you today. Some great food for thought. It's going to help you as you proceed with your business and you go on with your way today. And maybe you'll reanalyze like how you have stuff priced and you'll reanalyze your profit margins and you'll make the best decision for your business so you can actually be profitable. So here is here are some good tips, okay, that I wanted to come up with. And they may overlap with some you just heard by the by those that posted on my Instagram reel, but here they go. Okay, the first one, give advanced notice. I think this is so polite and so great. Don't say my price just went up, or don't say after they come in to buy, like the price, you know, is higher than last time you were here. Um, so what I would do is tell people ahead of time and send out an email. I've gotten emails from like software packages that I have used, and they say the price is going up on the state, and they will tell me way ahead of time. So I think if you have the ability, like if you talk to customers, maybe if you're a service provider and you're in person with them, that you tell them ahead of time, I just want you to know in two months the price is going up in three months, or next time you come in. I think giving people a fair warning is fair. You would appreciate that. So do that for others. Give an advanced notice. I also, number two, do this. Be straightforward about why. Be honest about why. You don't have to give this whole sob story, but you just have to say, as you all know, I'm sure it's affected you in your life too, in everyday life. Groceries have gone up, everything's gone up. Be straightforward about why. A lot of people don't know about your industry. Okay. Like I just recently learned a lot about the hair industry and hairstylists, and I'm blown away. Like I had no idea about all their costs and how much their shears cost. Like hairstylists that cut hairy, all their shears are so expensive. So it's things like that that we as clients may not know. So don't get angry if people ask you about that. Have a great positive conversation and let people know because I guarantee when you let them know, the majority are like, wow, and they feel empathetic for you and they love you and they want to still pay and they still want to be loyal. But it just helps them as well when they're making their decisions on what they're spending money on, know why they want to spend money on the hair or whatever service it is that you provide because they feel good about it. They're like, I've got to keep supporting this person in this industry because we all need it, right? So you don't have to overexplain. Don't go into a thesis. It's not a TED talk and it's not angry. It's not any of those things. It's straightforward. It's just like our costs have really gone up. People don't really know. I mean, you can even ask them, I don't know if you know much about our industry. Don't say it condescending, but you can just say a lot of people don't know much about our industry and realize the cost of the things that we incur. And so, um, you know, this has gone up, that's gone up 50%. And so that's why. And, you know, it breaks my heart. I don't want to have to raise prices, but in order to stay in business and keep doing what I love and to keep serving people like you, we've had to raise our prices. So there is a really good diplomatic way that you can say it. Okay. But be straightforward. Don't be like super weirdo about it. And don't keep going on and on, right? Less is more. Okay. Just be frank about them and be caring because you have to be empathetic to them too. The client doesn't know, the customer doesn't know what you're dealing with. They're only worried about themselves. Okay. So be nice, be empathetic towards them because something that they love to get done or they love to buy has gone up. Okay. Okay, number three. This was a good suggestion that I heard, and I think it's really good. Raise plot prices with your newest clients first or customers. Like, like your new people, you're gonna raise the prices, like the price is up. And many business owners start by charging the new clients a higher rate, but they'll grandfather in loyal long-term clients temporarily. So this is kind of cool because it's a softer transition for those clients that are repeat, and you can also create promos around this like time frame that the price is not going to go up, that it's going up, you know, publicly, but because they've purchased before, you are gonna grandfather them in for three months, for six months. And it's a great way to say, come back in. You can get this low rate. Go ahead and buy these now. We're giving a special rate until this. Use this coupon code, right? If you have an online store, use coupon code. If you're talking to them in person, you can, you know, tell them then maybe they can rebook right then. Depends, you know, again, what kind of industry you're in. But I think raising going ahead and and biting the bullet and raising the prices publicly is great. And then grandfathering your past clients and your loyal customers and say, but I'm giving y'all three to six months. Again, coupon code or some kind of promo to get them excited to buy from you again while the prices are still at that same rate before they go up. Okay. Number four, do it in smaller increments, but more regularly. So sometimes it's better not to go from like, say, you offer a service and you're like, it was$200 a month ago, it's$400 now. Like, let's not do that. Rather than one big jump, maybe you periodically raise the prices. They go up a little bit. Again, you're warning them ahead of time after each little jump. I just think managing smaller increases is what you're gonna have to do versus just going way up. Now, I understand like if you have a$200 project, it's going to$250, you may not need to do, you know, an increment. But if it's going from$200 to 400 and you can see that on the horizon, I would slowly start raising your prices, right? It feels more manageable to clients, right? And it gets them used to it because in their regular life, they're experiencing price increases too. Okay. Okay, number five, reframe it around value. When you raise your prices, it's a great time to remind people what they are actually getting. Your time, your expertise, quality products, all the schlepping you're gonna do for them, right? The things you're gonna do, the experience that they have. So you'll remind them you're still gonna get this, this, this, and this, you know, and they feel better about it. They're like the last thing they want to think is that they're paying more and getting less. So reframe that value, okay? Reframe it. So let me go ahead and review these first five in case y'all have missed it or you forgot already. And you can write them down. Give advanced notice if you can. Be straightforward about why. Okay. Don't go on like a TED talk about it. Go, don't go on write a thesis about it. Just be straightforward. Uh, number three, raise prices with new clients first. Like go ahead and publicly bite the bullet and do that. Do it in smaller increments and more regularly. Reframe it around value. Okay. And then number six, this is one of the biggest things is that you have to just do it. One of the biggest things that small business owners do is they they fear everything and they fear the price increases and they just get scared. And so they keep working and they keep working, and they're making less money and less money and less money. And then they're mad every day when they go home because they're like, I'm making less money. And it's making me sad. But y'all, all of y'all love what you do. You would not be here listening to this podcast. You're very passionate about it. You want to help people. You you love it. And it's hard. It's hard because you're scared what your clients are going to think about you and all that. But you have to bite the bullet. Y'all, you have to just do it. Your loyal ones are going to understand. Okay. I've had stuff go up on me on services that I get. And I'm like, dang it. I'm not going to say I'm not like frustrated, y'all. We can't deny that clients are not going to be frustrated. So, so understand that. Be empathetic. They are frustrated. We're all frustrated. You're frustrated. I mean, I go to Costco now, and some of my stuff that was so much cheaper, like toilet paper, paper towels, it's all more expensive. Okay, the memberships have gone up for the years. I'm like, dang it, why has this gone up? And then once they share why, you're like, okay, I'll be quiet now. This is it's gone up. Everything's gone up. Uh-huh. So, but the ones that that are really loyal, again, they're gonna stay. And the ones who leave right away with a tiny increase, they probably weren't your ideal customer or client, anyways, because if they're that sensitive to every little price, it may not be like your best person right now for what pricing you are at. Do you see what I'm saying? Because there may be other service providers or product makers that provide it at a different cost, and maybe that's better for them, and that's okay. Everyone deserves to find their right vendor, uh, service provider, stylist, designer, whatever it is, right? And number seven, y'all, this is a big one. Lucky seven. Don't apologize for it. Now, don't get me wrong on this one, y'all. I'm not saying don't feel bad. I'm not saying that. I think you're humans and you're wonderful humans, and you feel bad when the dang price goes up. You don't want to tell your customers and clients, it's like, you know, sending out an email, like I just I can feel it. I I was there, I had little price increases. I didn't have as much as y'all did today. But it's cringy. You sit down and you're like, they're not gonna like me, they're not gonna buy, blah, blah, blah, blah, blah and all this thing goes in your head. I think you have to just not apologize. That goes back to number, let's see, number two, where I said be straightforward about it and why, is that you're just straightforward and you're frank and you're not giving a long thing, but you're you're not apologizing. You can empathize and say, I know it's hard. All of our stuff has gone up. Believe me, if I if I didn't have to raise the prices, I wouldn't. Although, even as I'm saying this, y'all, it's hard because I think our best clients, like I'm thinking, I want to say I'm sorry because I do. I feel bad. But I think it's all in the way that you frame it. I don't know. This one's a tough one. This is what most of the gurus out there, and everyone says is don't apologize for it. I think there's a fine line in there about really empathizing with them. I know everything's gone up. We've had to raise our prices, and this is where it is. Unfortunately, this is where it's at. And uh believe me, I don't want to raise prices on you or anyone, but this is what has to happen so that we can stay in business and I can continue to serve you and help you. And I love what I do, and I'm so happy to have you as a customer or client. Do y'all see? There's things we can say that really make them feel good without being like, I'm so, so sorry. I'm so sorry, and saying I'm sorry 50 times because that would be me. I say I'm sorry over little stuff all the time, and it's annoying to people. It's really annoying. Don't do it on this. I'm not saying you don't feel bad. I'm saying as a business owner, you're running a business and I have to say, yeah, it stinks. And I think you can agree. Like, we have common ground. This stinks. Inflation has affected us, but we want to continue to serve you. And I'm just so in love with what I do that I don't want to stop doing this. And so, in order to stay in business, this is what I have to do. If someone told me that, I'm like, I'm all in, I'm still paying you. Like, no matter what, like, let's keep going. And there may be a point where I'm out where I'm like, okay, this has gotten ridiculous, right? There is a point, there's a breaking point for people. But I think empathizing with them is one of the best things you can do. Make them feel seen in that they are experiencing life in a new way, that everything's more expensive, right? Make them feel seen too. So how does this feel? I'm gonna review them one more time. Number one, give advanced notice. Number two, be straightforward about why. Number three, raise prices with your new clients like publicly first. Four, do it in small increments more regularly if you can, so there's not like a huge jump. Number five, reframe it around the value that's they are still getting. Number six, just do it. Bite the bullet. You have to do it, get over it. It's like when you jump off of a high cliff into the lake, you're jumping off a cliff, you just you gotta go. Can't overthink it. And number seven, don't apologize, but be super empathetic. Okay. But don't be like pathetic. I should have said that. Be empathetic, but don't be pathetic. That should be number seven. So maybe we we scratch, don't apologize for it, and just be like, be empathetic toward them. I loved this conversation. It's so timely, it's perfect for all of us because we're all experiencing price increases. And I think we all have to be empathetic toward each other in this. If clients get upset, be empathetic. Yeah, yeah, they're upset and be like, I'm upset too when I'm buying stuff. I get it. Everything I'm buying is more expensive. So that's it. Y'all are awesome. I'm so glad you're here. Make sure you hit subscribe, make sure you also follow on Start with Kimberly Brock on Instagram, because there are tons of things to come. I'm so happy you're here, and I'm just so excited for you and your business. Okay, that's it. Y'all have a great day until next time.

Bye. Now, this episode may be over, but our relationship does not have to end here. Head on over to Kimberlybrock.com, and yes, you can get more valuable information for your journey. And you know what? You don't need to go through this alone. I would love to help you. Thank you so much and have a great day. Bye.