Last week, one of the entrepreneurs in a group I’m in posted a comment asking for advice on a business problem. He is a solopreneur offering one-on-one music training to his students. He’s got a full schedule right now, but isn’t making enough money to cover his budgetary needs.
He needs to raise his prices.
And he’s tested it by charging higher prices to the latest batch of students he’s brought on. So he knows his new pricing is acceptable in the marketplace.
However, some of his older students have been with him for years. He was asking for advice about whether or not he should raise their prices and if so, how to justify the increase.
If you haven’t already, you’ll face similar issues as you gain business experience, get better at what you do, and want to grow your business.
At a certain point, you’ll need to raise your prices to increase your income. Even if you hire people to work for you at some point in the future, you’ll still need to raise your prices to be able to pay them and earn a profit yourself.
That is a tough conversation to have with a client who may have been with you from the beginning.
But it may not be the only tough conversation you need to have with a client.
Maybe you’ve outgrown some clients or you’re changing niches… the work you do for them is no longer on your strategic path. And you need to tell them you’re no longer able to continue working with them.
Maybe you’re trying to work with a new client, or one you’ve been putting up with, who doesn’t give you what you need to be successful for them or for you.
Or maybe you’ve committed to a project but had a personal emergency come up and you’re no longer going to be able to deliver on time… or at all.
All of those scenarios involve having tough conversations with a client.
And depending on your personality type, you may be more or (much) less enthusiastic to have those tough conversations.
But, like it or not, as a business owner, you will have to have tough conversations if you want your business to grow and flourish.`
Here are some tips to make those tough conversations more palatable and easier to have:
Prepare Ahead of Time
You never want to go into a tough conversation by winging it. First, consider why you feel you need to have that conversation. What will the impact be to you and your business if you decide not to have it? What improved situation will you face if you do have it?
Second, think about how they’ll react… what would a helpful reaction be? What would an unhelpful reaction or reactions be and how can you be prepared to respond? How can you deliver the message in a way that minimizes any hurt or anger they might feel?
Maintain your professionalism. Stay calm, focused, and empathetic.
Third, get yourself into the right state of mind to have the conversation. Amy Cuddy, social psychologist at the Harvard Business School, suggests holding a Superman pose for two minutes before heading into any important meeting. It puts you in an empowered state of mind as opposed to being in anxiety or fear.
Choose the Right Time and Place
Don’t deliver tough news over email, ever.
Since most B2B writers work with clients who aren’t co-located in the same place with them, any face-to-face conversations will need to happen over Zoom.
But ensure you’ve got uninterrupted time that’s convenient for both of you, and definitely not in the middle of a launch campaign or what you know is a busy or stressful time for your client.
Even if you can’t get on a Zoom call, you should at least be on a phone call. You don’t want them to feel disrespected by your delivering a message they’re unable to talk to you about.
Be Direct and Honest
Don’t beat around the bush or sugarcoat the issue. Explain the problem clearly and succinctly and be specific about what you’re asking. If you need something more or different from them to be successful, be specific about what needs to change. Avoid blaming them or making personal attacks. Instead, focus on the behavior or action that needs to be addressed.
And if you need to let them go, share your change in business direction. If you can, offer to help them find a replacement… and then reach out to your peers to see who might be a good fit.
If you want to raise your prices, tell them that and be transparent about why. And don’t forget to use your copywriting training — remind them of the value you’re providing to their business.
Listen Carefully
Once you’ve said your piece, you need to allow them time to say theirs. Listen to the words they’re saying and the emotion behind them. Don’t react defensively — burning bridges, even if you don’t ever intend to work with them again, is just not a great business decision. And if you properly prepared for the discussion, you can stay focused on them and their needs, not your emotions or reactions.
Also, by listening carefully, you can clear up any miscommunications or misunderstandings. Maybe they’re going to give you some new information that shifts your perspective. Maybe not, but you show them respect by listening.
Seek Solutions
Once you’ve identified the issue and listened to your client’s perspective, you can work with them to find a solution that works for both of you.
Especially with price increases or situations where you’re no longer going to be writing for them, you should give them notice.
For instance, if you need to raise prices but they don’t have it in their budget until next quarter, you could discuss either delaying the price increase until then or changing the scope of what you provide to them to fit within their old pricing arrangement.
Be open to negotiations… maybe they won’t entertain paying a higher fee but maybe they’ll accept a reduction in scope at the old fee.
Or if you’re changing directions and want to stop working for this client, you can work with them on how to time the change so their business is not impacted. And potentially offer to help them find a replacement.
Having tough conversations with clients is an inevitable part of running a business. But if you prepare for the discussion, are honest and direct, listen to their viewpoint, and work with them to find a solution that works for both of you, that tough conversation may not be as tough as you thought it was going to be.
Oh, and by the way, that music teacher? He figured out what the market would bear, and he’s notifying his current clients that he will be raising their prices in two months. He’s figured out that even if he loses almost 40% of his current students, and gets no replacements, he’ll still break even. A tough conversation he’s decided is in his best interests to have.
