174 How To Make Big Changes Without Losing Clients (e.g. A Price Increase)

# Timestamped Transcript - Business Changes Without Losing Clients

Sumantha [: 00:00

Making big changes in your business, or even seemingly small ones, like a price increase that doesn't feel like it's a huge difference can be really unnerving. Because we are often driven by fear. The fear of upsetting people or losing clients. And because it's something that's new and maybe it's something we are not used to talking about, it just feels a bit uncomfortable, doesn't it?

Sumantha [: 00:30

And that's even when you know that these changes are absolutely right for you, and they're, they're a good thing for your clients and for your business. If you're new here, I'm Sumantha. Welcome, and in this episode I'm going to share how to navigate these kinds of situations and how to make changes in a way that doesn't result in you losing clients.

Sumantha [: 00:58

This is really a funny topic for me because I'm really good at helping my clients navigate how to handle these kinds of situations where they're making changes, whether they're big or small, but. I still feel the fear when I do it myself. I recently completely transformed, upgraded my bespoke one-to-one mentoring program.

Sumantha [: 01:24

I know it's better, I know how powerful it is, but I still felt really nervous at the beginning, and so I want to share a few things that really helped me overcome those nerves and also any fear that I felt. And this kind of things I'm gonna be sharing is going to be a mishmash 'cause it's going to be a combination of things that I had to tell myself or I had to do.

Sumantha [: 01:52

It's going to be a blend of things that I have helped clients do because maybe I haven't been in that situation, but they have and it's work for them. I'm even going to share advice that my business coaches have told me. So, although it's going to be a little bit of a blend, I hope it really helps you.

Sumantha [: 02:16

Now when we make changes in our businesses. They are often driven by our needs, and there's nothing wrong with that. But I think when we just focus from that angle, that's often where the problem lies because we are so busy seeing it from our side. For instance, if you've had a price increase. You know that what you offer will be more lucrative, and that's probably one of the reasons why you did it.

Sumantha [: 02:46

Or if you've switched from a one-to-one program to a group program, again, one of your reasons is probably because it's going to be really good for your business and for you, and it makes things more sustainable and so on. Now, all of these things are really good. They're a good basis for making decisions.

Sumantha [: 03:12

Our businesses should be lucrative, our businesses should be sustainable, and we can achieve all of that without compromising on the impact that we make. We can still protect our craft and thing that we're passionate about. Now I know you know that. I know that, and yet when we make changes, we still feel the fear.

Sumantha [: 03:36

So the first thing is to look at it through the eyes of your clients. Let's say you're doing a price increase. You can justify something like that simply by having a statement in your terms and conditions that makes it very clear that every now and again they may expect, your clients may expect a reasonable price increase.

Sumantha [: 04:02

Many companies do this, and I'm sure you've been in situations where you've received an email from a company where they've told you that your subscription price is going to increase on a future date. So if you are in that kind of situation. You can do something similar. You can give people notice and then that way they don't feel like you're suddenly increasing something like the price or changing how you do things in a way that doesn't give them a choice to decide whether or not they want to continue.

Sumantha [: 04:34

Now, the reality is most people will actually continue because if they've been working with you. They made that choice to work with you, and they made it for some very good reasons. So your price increase doesn't suddenly change Those reasons, they don't suddenly invalidate those reasons. But for most of us small business owners, for most of us working in the education space, sending an email.

Sumantha [: 05:02

Where you're just notifying, people can feel a little bit cold. Now, if that's what feels right for you, there's nothing wrong with that approach at all. It works. But this got, this has to feel comfortable. It has to feel good. So if you feel a bit uncomfortable with that approach, I would suggest coupling that notice period with some, some kind of personalized interaction.

Sumantha [: 05:28

And even better is when that price increase can be justified with a reason that really serves your client client's interest. So it could be that you've developed your offer so that actually they gain more benefit. And this doesn't have to be a major revamp of what you offer. It could be a very small addition.

Sumantha [: 05:52

Or a very small improvement. So let's say you are a tutor. Maybe you add a bank of resources that your students can access independently. Maybe you guide them through that, or you add some exam papers. I know I'm talking about resources in general here, but there are loads of things that you can add. You can have a check-in with the parent, with the child, you know?

Sumantha [: 06:18

Specific intervals. You just have to think innovatively and tap into what would really compliment what you already offer in a way that enhances your client's experience in a way that still keeps it sustainable for you. You don't want to add load to your workload and in a way that makes you feel comfortable in explaining why you have this price increase.

Sumantha [: 06:44

So when you then look at things from your client's perspective, and when you think about how you can communicate things in a way that's going to make your price increase or your big change, whatever it is, when you think about how you can communicate it in a way that makes sense to them that's appealing and palatable for them, the ideas flow so much faster than when you stay very focused on why this change is actually.

Sumantha [: 07:14

Better for you, and I know I've already said this, but I'm going to repeat it one more time. Making decisions that are best for you is a brilliant way of approaching your business because if you don't, then you risk not really being able to continue working like that or for a long time. And ultimately.

Sumantha [: 07:36

The impact that you have on people will be compromised because you might have to stop doing what you're doing and the way you are doing it. So you certainly have to look after yourself first. You know, as they say, you can't pour from an empty cup, but when you're communicating it, you need to think of it from their perspective.

Sumantha [: 08:00

That's where that shift comes, and that's where the ideas flow of little things that you might be able to add to kind of sweeten the communication. Now another thing to include, depending on how you sell, what you offer, is a technique called value stacking. This is something that's used very frequently in the sales world, typically at the point where someone is speaking to a potential customer.

Sumantha [: 08:26

So it could be in a discovery call, let's say, but. You may not be in that position. For example, you might sell something that people can buy by clicking on a button on your website. So in that situation, maybe you never actually meet or speak to these clients, these customers. You can still apply value stacking regardless.

Sumantha [: 08:48

Okay? You can apply it whether you are speaking to someone or whether you are communicating or selling in a different way. And all value stacking means is listing all the things that someone gets. For your price point, and this doesn't have to be something you do to justify a price increase, it can simply be something that you do because you are communicating a change or because it's just good practice when you are communicating the value that you are bringing to the table.

Sumantha [: 09:18

It's actually a really great way of being proactive about preempting potential objections. And if you dunno what I mean by objections, they are simply hesitations that people feel that stopping them from saying yes to investing in what you offer. So value stacking can also be a really great tool if you are in a negotiating position.

Sumantha [: 09:42

So, as I talked about in an episode not that long ago. People often see negotiation as a negative thing. So if someone asks you for a discount, the temptation is to say no. Sometimes we feel very insulted, and the general advice is don't offer a discount. It's your business, it's your rules. You know, all of that.

Sumantha [: 10:04

But the reality is that not everyone is in a position where they can just turn down the work. That doesn't mean you still have to say yes to a discount and work at a loss, and this is another situation where value stacking is really, really useful. So let's say someone has asked for a discount and you want to make it work for them and for you, that win-win is the sign of brilliant negotiation, a really good way to create that situation.

Sumantha [: 10:34

Is to list all the things they get for the price you charge. So your value stacking, if you can do this in some kind of visual way, even better, but you don't have to. And then as you try to work within their budget, you can communicate what won't be included from that value stack from that list. So it could be something as simple as taking away.

Sumantha [: 10:58

Part of your package or part of your offer, that might reduce a little bit of the impact you're making, but not to the point where it weakens the entirety of what you offer. So it could be something as simple as reducing the time you spend with a student. So let's say you have a one hour session. Maybe you reduce that to 45 minutes, so they're still getting everything that they would normally get.

Sumantha [: 11:24

But by shaving on off some of that time, it makes you feel comfortable perhaps offering the discount and to make sure that psychologically or potential client understands. You are working with their needs to make sure that they understand the value that you bring to the table. Actually using a value stack is a great way of setting the right tone because you don't want to start a relationship with a client who thinks that every time they demand something off you, you are just going to say yes.

Sumantha [: 11:54

So this is a really nice way of navigating those kinds of really tricky situations or communicating big changes. Now, that's what this episode is about. It's about making changes without losing clients. So let's say you have a brand new offer, or you have changed what you offer, like I have with my Bespoke one-to-one mentoring program.

Sumantha [: 12:16

Using the value stack really drives home why What you are offering is. So much better for them. And so when you com, when you combine this with the earlier tip that I shared about looking at things from your client's perspective, you build a very, very powerful way of communicating your new offer or your change or your.

Sumantha [: 12:36

You know whether it's big or small, and you're communicating it in a really positive way that makes them join you in the excitement. They feel excited. They don't feel resistant or insulted or upset. Now, I think something that's very important to also acknowledge is that making changes to what you offer is actually a really good thing because it's a sign that your business is evolving.

Sumantha [: 13:00

It's a sign that you are always looking to improve, and it's a very natural part of growth. For example, when I do work with people on my one-to-one accelerator program, the thing that really drives us is creating or tweaking their offer suite to make sure they're really maximizing the opportunities that are in front of them.

Sumantha [: 13:22

Growth doesn't happen by standing still. It doesn't even happen necessarily by adding more. Actually, growth often happens when you take action. To change things, to improve things, for things to evolve. And so I'm talking about this because if you give yourself permission to change your mind at any time or to, you know, upgrade things, it's very empowering.

Sumantha [: 13:46

And it's empowering for two reasons. Firstly, you can remove or at least alleviate that discomfort that you might be feeling about making the change in the first place. And secondly, it removes the fear of just trying things out a while back. If you remember, I started a book club. In fact, I talked about it in the podcast.

Sumantha [: 14:06

Many of you may have been a part of it, and I was quite uncertain actually, when I was launching it because my biggest concern was whether I would be able to sustain it without spreading myself too thin. It was something I'd really wanted to do for a long time. Now, whilst I gained a lot of benefit from it, and I got lots of really positive feedback, the reality was I couldn't keep it going as well as spinning all the different plates in running my business and serving my clients.

Sumantha [: 14:34

And so I stopped it and I stopped it really proudly. I made a bit of a song and dance about it because I wanted to show people that you can try things and you can change your mind. Don't lose face, you don't lose credibility. And I suppose the thing that made it quite easy was my mindset from the start where I just looked at it as an experiment.

Sumantha [: 14:54

I just thought, I'm gonna try it because I'm never gonna know unless I try and let's just see how it goes. I had a fallback plan, so mindset. Always comes before strategy, otherwise the strategy itself falls flat. I can give you all the tips in the world today, but if you feel scared of making changes, if you are tempted to stand still, because that's just easier and it's more comfortable than having what you feel could be a difficult conversation, then you are not going to implement any of the things that I've shared.

Sumantha [: 15:24

But if you are of the mindset where. Your business should actually always be evolving, and it's not just about growth. You may not want to grow, but it should be evolving and improving. And if you give yourself permission to change your mind at any time, and if you try things, if you view them as experiments, it becomes so much easier not only to make changes, but to actually communicate them.

Sumantha [: 15:48

Now, of course, there's always a chance that you will lose clients if you make changes because. Quite simply, you can't make everyone happy and you can't align with everybody's circumstances. In fact, you probably don't even know the circumstances of everyone that you work with, but that risk remains whether you change things in your business or not.

Sumantha [: 16:08

People could decide to stop working with you. At any time. The main thing is that you look after yourself and you look after your clients. You don't have to choose one or the other. And as I talked about in a recent marketing based episode, marketing doesn't start with the content you're putting out there or the language you are using, or how many times you are posting on social media or whether you're doing videos.

Sumantha [: 16:32

It actually starts with your offer. You have to have the best offer. You have to have the best offer for all of that marketing to work. And when I say best, when I say you have to be the best, I mean, you need to be the best for your target audience and their needs. And so when you take this approach, regardless of what change you make for reasons that serve you.

Sumantha [: 16:54

You'll never do your clients an injustice because putting their needs front and center will be baked into you. And so really that's all you need to tap into. When you are communicating a change, you know that it's a good decision for you, but you also know that it's not a terrible decision for your clients. They're going to be supportive.

Sumantha [: 17:16

So I hope this episode has made you feel confident about actually making changes in your business and communicating them in a way where you're very unlikely to lose clients. Remember that selling is ultimately an exchange of energy. I know that sounds a bit woo woo, but. It's really not. How many times have you bought something from someone because you connect with them?

Sumantha [: 17:38

How many times have you not bought from someone because you don't feel very connected to them or you don't feel very aligned? So if you are excited, if you are certain about what you offer, including any changes that you are making. That will come across not just in language, but in those nonverbal cues, things like body language, and that's why I haven't focused this episode on telling you what to actually tell people.

Sumantha [: 18:02

I focused on making sure that you are thinking in the right way, because whatever your feeling will translate, it will come across, whether you mean for it to or not. Now I've mentioned my new Bespoke one-to-one accelerator program a couple of times because it's very current. It's very relevant to my business right now, and I wanted to share tips with you. While the experience is very, very fresh in my mind, and if it's made you curious to see whether it's something that you need to accelerate your growth to get clarity when you might be feeling confused with lots of different ideas, if you really are serious about making more money and working less because you want to have something that serves your future.

Sumantha [: 18:34

Then just book a discovery call with me. The link is in the show notes. Nobody can press a button on my website and enroll into the program because I have to make sure it's absolutely right for you. So come and have a chat with me. I would love to meet you and discuss how I can help you. Create something that's really on your terms and something you feel safe and secure in. Now. As always, thank you for giving me your time. If you have a quick moment, please do leave a review. I think it's very easy if you're on Apple Podcast. I'm not sure about other platforms, and if you are on YouTube, then don't forget to subscribe. You'll hear from me on Wednesday.