- The Beekeeper
Part 2. why is raising rates so Dang difficult? what happens for us internally?
Updated: Mar 29
Over the years, it has always made me cringe when the time came to raise rates. An announcement would go out and the phone tree would start. “Can you believe this?” “This is going to be so hard.” “My biggest accounts are going to freak out!”
When rate increases are with our own business, feelings can be even stronger.
Raising rates batters us on many fronts for good reason because the prevailing feeling that comes up, is fear, twinged with guilt. I mean a Giant Fear Guilt Elephant, followed by a LOOOONNNNGGGG Worry Train.
Worry train, Coming into the station, full steam ahead.
Fear and Guilt overwhelm us, and they are just the tip of the iceberg. These feelings can be fueled by internal thoughts, about worth, regarding our products, services or even ourselves:
“Who do I think I am for raising rates?” “Is our product or service worth it?”
And then, the worry train moves out of the station, into the land of “What ifs”
What if we lose our clients?
What if we are putting clients over the edge, out pricing our product or service?
What if our competition offers a lower price?
What if my clients don’t think our product or service is worth it?
What if they get mad?
What if they want to talk about it?
And yes, some of the “What ifs?” could happen, however, most, if not all, or even. any of them may or may not too.
Think back on times in your life where the inevitable happened and you had to raise your rates. What actually happened? What were you afraid would happen? Notice the gap and think through why something happened and how you handled it.
Consider your own reactions: Rate increases happen all the time, and we manage them. We grumble, and at rare times we may even stop using a product or service, but most of the time we sigh, roll an eye, and keep the status quo.
However, when we must give an increase, we forget this.
When we provide a quality product or service, have taken time to cultivate strong, meaningful, and honest client relationships; when the inevitable time comes, we are in a better place to ask for the increase.
This does not in any way erase the fears, or guilt and worry train into the land of What ifs, however, it gives us a head start in the asking with confidence.
The next entry of "Why is raising rates so dang hard? (and how to make it so it isn't)" will share how to ask for a rate increase with confidence and a few strategies considerations.
The first entry of this three part series explored, Why Do We Need to Raise Rates Read that here.
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