How To Raise Your Rates By Building More Demand
Contributed by SBOC Member:
Pat Miller
Founder of the Small Business Owners Community
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If you’ve been wanting to raise your rates but can’t pull the trigger, you’re not alone. Most small business owners sit on the same prices for way too long — not because the numbers are wrong, but because the fear of losing clients feels too real.
Here’s what Pat Miller broke down on today’s Businessing: the reason you can’t raise your rates isn’t really about the dollars. It’s about not having enough demand for what you’re selling.
Think about it this way. You have eight units of inventory. Fifteen people are standing in the pipeline with their credit card out. Are you scared to raise your rates? No. You raise them without blinking. “Cool, I’m gonna raise my rates. Why? Because I got 15 people standing here with their credit card out.”
That’s the shift. When demand is high, pricing feels easy. When demand is low, every price feels like a gamble you’re pulling out of thin air.
The Erin Marcus "50 Leads" Method
The fastest way to raise your rates with confidence is to build demand before you announce the price.
Pat shared a story about working with coach Erin Marcus on a product launch. The price was aggressive, only eight seats were available, and the funnel was thin. Her response: “Before we do this, you need to identify 50 potential customers you can pitch this to.”
Fifty felt impossible. But here’s what the actual work looked like:
Review your CRM and database for people who match your ideal client profile. That’s the starting point, the people you already know. Then ask your network directly for referrals. “I’m launching this new thing. Do you know anyone that needs it?” Go through your past email communications and look for people you’ve already warmed up on the topic. Start posting about the topic on social media and inside your communities, then watch who engages. Those people who like, comment, or share are leads. Hold a free webinar on the topic. Everyone who registers and everyone who shows up is curious about what you’re selling.
All of that rolled up to 50 leads. The product sold at the price Pat wanted because the demand was there to support it.
The Claude Cowork Shortcut
Today, Pat does this faster. He described going to Claude Cowork and saying: “I need to generate 25 more leads for the AI Mastermind group. Search my email, my database, my SBOC community, my newsletter, the people that are engaging with me on social, and generate a list.”
About 10 minutes later, he didn’t just have a list. He had a list scored by interest signals, showing who each person was and how much they’d already talked about AI installation in their business.
That’s the difference between guessing at demand and measuring it.
What About Your Current Clients?
The question always comes up: “I want to raise my rates, but I’ve already got six clients. What do I do about them?”
Pat’s approach has always been the same. Honor the contract you have with existing clients. Raise rates on every new client that comes into the funnel. When you have a big line of demand waiting to take a slot if someone leaves, even grandfathering existing clients feels comfortable.
The Real Reason You Haven't Raised Your Rates Yet
“This conversation was about what do I need to charge more? I need more customers that want it. Because when more customers want a thing, the thing is more valuable.”
Stop trying to psych yourself into higher prices. Start heating up the demand side. When more people want what you sell, the pricing conversation takes care of itself.
Listen to the full episode: Businessing with Pat Miller
YouTube: https://www.youtube.com/@BusinessingShow
Apple Podcasts: https://podcasts.apple.com/us/podcast/businessing-with-pat-miller/id1870663109
Fridays Off Newsletter: https://fridaysoffnewsletter.com
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Contributed by
Pat Miller
Founder of the Small Business Owners Community
Pat spent two decades in broadcasting management and hosting. After leaving the radio industry, he spent time consulting small businesses and realized the support system for entrepreneurs was broken. Where could you find help for improving small businesses and building real connections with other like-minded people. In June of 2020, the Idea Collective Small Business Community was born.