How I'd Price for Absolute Profit — Transcript

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1. 0:00Stop selling from your own wallet.
2. 0:01Especially if you're one of the people
3. 0:02who, you know, you're in that in that $2
4. 0:05category, right? You're that bottom 50%
5. 0:07right now. I get it. I've been there.
6. 0:09You have to forever imagine, this is a
7. 0:11gift. Forever imagine that everyone is
8. 0:13rich. So, here's the reality that will
9. 0:15shock you. That top 10% top 10% of
10. 0:18Americans have a million dollar plus net
11. 0:20worth. One in 10 people. One in 10
12. 0:22people million dollar net worth. They've
13. 0:25got the money. You just aren't selling
14. 0:27them something that they want. And you
15. 0:30might even be, and this happens a lot,
16. 0:31especially for newer business owners.
17. 0:32You might even be too cheap for them to
18. 0:34even believe that you're good. Like we
19. 0:36had a company that uh that was in the
20. 0:38health space a while back and looking at
21. 0:41all the research, it was a doctor and
22. 0:43all this stuff. And I just fundamentally
23. 0:47believed that they were mispriced. And
24. 0:49so what I did was I raised I wanted to
25. 0:51raise the price by double. You fought me
26. 0:52back and forth forever. And I've I was
27. 0:54able to finally get a 50% price race
28. 0:56through. But guess what happened? We
29. 0:58raised the price by 50%. That's a lot.
30. 1:01What do you think it did to the close
31. 1:02rates? They went up. They were so cheap
32. 1:06compared to the promise and what they
33. 1:08were delivering that people didn't even
34. 1:10believe that it worked. And so, some of
35. 1:12you guys are so cheap because you're
36. 1:14selling out of your own wallet. You're
37. 1:15selling based on what your friends and
38. 1:16family who might also be in that $2
39. 1:19bottom 50% uh are telling you. But the
40. 1:22why would you listen to the people who
41. 1:24don't have money on how to get money?
42. 1:25They don't know where it is. they don't
43. 1:27know how to get it. And more
44. 1:28specifically, they don't know how to
45. 1:29serve the people who've got it. So,
46. 1:32that's the first thing. The second thing
47. 1:34is that if you're going to do this,
48. 1:37listen to me on this. Whatever your
49. 1:39upsell is, 5 to 10x the price. And then
50. 1:42just make sure it's something that you'd
51. 1:43be happy to deliver for 5 to 10 times
52. 1:45the price. Sometimes I'll get push back
53. 1:47from people who are like, "Ah, that
54. 1:50would that would be so much work." And
55. 1:51I'm like, "Cool, we have value and we
56. 1:53have price. move one of them. Either do
57. 1:56less or charge more. I would encourage
58. 1:58you to just charge more, right? And so
59. 2:00if I were to say, "Hey, I want you to 10
60. 2:02times the current price of your upsell."
61. 2:04What would you do that would absolutely
62. 2:06blow people away? How much does that
63. 2:08actually cost you? When you look at the
64. 2:10cost compared to that 10 times bigger
65. 2:11price with a zero on the end of whatever
66. 2:13your core offer is, you might find it's
67. 2:14like actually it's only like, you know,
68. 2:165% of that price, it's like, right,
69. 2:19really high margin.
70. 2:21So, as long as you're happy making more
71. 2:24money, serving fewer people, go do that.
72. 2:27The third one is that you should expect
73. 2:29only one in five or one in 10 people to
74. 2:30say yes. Expect more nos. And this is
75. 2:34the sweet spot of making money, right?
76. 2:36The sweet spot isn't the most yeses,
77. 2:38it's the most money. And that is never
78. 2:41with the most yeses. So, if you pitch
79. 2:43your 10 times bigger price to this
80. 2:46bottom 50%, none of them are going to
81. 2:48say yes. and you're going to mistakenly
82. 2:50believe that this is a bad idea. But the
83. 2:52reality is that you're just not talking
84. 2:53to the people who have the money. And so
85. 2:55you should expect that if you have a
86. 2:56representative amount of people that you
87. 2:58speak with, one in 10, maybe even one in
88. 3:00a 100red is the is the person who is the
89. 3:03correct avatar. And for that person, you
90. 3:05might also find they'll just say like,
91. 3:06"Yeah, that sounds good." You'll be
92. 3:07like, "Oh my god." And I only say this
93. 3:09to somebody who's had it happen for the
94. 3:10first time. You're like, "I can't even
95. 3:11believe this is possible. I can't
96. 3:12believe this person would give me this
97. 3:13much money." It's because to them, it's
98. 3:15not that much money. It's only that much
99. 3:16money to you because you still live
100. 3:18here.
101. 3:20If you sell to rich people long enough,
102. 3:21they will make you one of them.
103. 3:25And so with your upsell, make it crazy.
104. 3:28And this is called an anchor for a
105. 3:29reason, right? If no one buys it, no big
106. 3:32deal. Or most don't, no big deal. But
107. 3:34the good news is that it'll still help
108. 3:36you sell the rest of everyone else at a
109. 3:38higher percentage and even at a higher
110. 3:40rate because it'll look like a good deal
111. 3:42in comparison.
112. 3:45And I said this before, but I'll say
113. 3:46this again.
114. 3:48The next reason is the only thing worse
115. 3:50than selling a $1,000 thing to a $100
116. 3:52buyer is selling a $100 thing to $1,000
117. 3:54buyer. In the first, you lose a h 100red
118. 3:56bucks. In the second, you lose 900. And
119. 3:58not only that, that 900 is probably
120. 4:00disproportionately profit. And this is
121. 4:01what no one understands. This is why
122. 4:03most businesses don't make money. They
123. 4:05just try and sell to these people who
124. 4:07are the biggest pain in the butt. And
125. 4:08the thing is is you see so many of them,
126. 4:10you're like, "Oh, this must be how it
127. 4:11works." No, it's not how it works. It's
128. 4:13just how you're working. This is how the
129. 4:15average business works, which why the
130. 4:16average business doesn't make money.
131. 4:18They don't go to the where the money's
132. 4:20at. The next reason is you have to think
133. 4:22about absolute profit rather than
134. 4:25relative profit. And you'll be blown
135. 4:26away. So, a single person paying $10,000
136. 4:30for something that costs $2,000,
137. 4:34a single person, right? one, right?
138. 4:38Buying a $10,000 thing that cost $2,000
139. 4:43is the same
140. 4:45as 400 people
141. 4:48buying a $50 thing that cost $25.
142. 4:55These are the same.
143. 4:58So, do not underestimate the power of
144. 5:01large prices in small quantities. If you
145. 5:03like this video and you're a business
146. 5:04owner who wants to break through your
147. 5:05current revenue ceiling, I distilled
148. 5:06every lesson from scaling 10 businesses
149. 5:08past 10 million and three businesses
150. 5:10past 100 million into a completely free
151. 5:12scaling road map that I've used to go
152. 5:13from 0 to 1, 0 to 10, and 0 to 100 plus.
153. 5:16And so you can click here and you can
154. 5:18check it out. Again, absolutely free.
155. 5:19And since you're a business owner,
156. 5:20appreciate you and uh enjoy.