"Why Am I Afraid to Charge What I'm Worth?" — Transcript

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1. 0:00All right, commercial refrigeration.
2. 0:01That sounds fun.
3. 0:03>> Greatest businesses, man.
4. 0:04>> Really? Commercial fridge? Yeah, I mean,
5. 0:06there's probably like 10 of them and
6. 0:07they can charge whatever they want.
7. 0:08Yeah, that sounds interesting.
8. 0:12My hack, what's up?
9. 0:14>> Hey Alex.
10. 0:16>> Hi. What's revenue? What's holding you
11. 0:18back? How can we help?
12. 0:21>> Austin, revenue is about a million. Um,
13. 0:23gross margin is around 40%.
14. 0:26>> Nice. Oh, gross. Gross. Yeah, okay.
15. 0:29Okay. So, 250? 250 net?
16. 0:32>> 250 net.
17. 0:33>> Okay, got it. 40% gross margins, got it.
18. 0:37Um, all right, commercial refrigeration.
19. 0:40Uh,
20. 0:41um,
21. 0:42got it. Okay, so what's what's holding
22. 0:43you back?
23. 0:45>> Um, I think pricing. Um, I I think I
24. 0:48said in the context text like, uh,
25. 0:51qualified leads, sales team, and
26. 0:53pricing. But, since we're talking money
27. 0:55models right now, let's go with pricing.
28. 0:57Um, I sell a commodity. It's a $100,000
29. 1:01per ticket commodity, but, um, it is in
30. 1:04a in the end like hard to differentiate
31. 1:07like the value of a,
32. 1:09you know, $50,000 walk-in cooler versus
33. 1:12a $100,000 walk-in cooler, right?
34. 1:15And
35. 1:17that's kind of I think where I'm
36. 1:18struggling cuz I used I was at this
37. 1:20workshop and they gave me some good
38. 1:22advice about
39. 1:23>> Yeah.
40. 1:24Yeah.
41. 1:25Yeah.
42. 1:27Okay.
43. 1:28Right.
44. 1:30>> referral bonus, got a client and a
45. 1:33$50,000
46. 1:34>> So, you ROI the, uh, the day. Fantastic.
47. 1:37>> I did. I did. And then, the challenge
48. 1:39was, um, that the client, one of the
49. 1:42clients that I did pick up from that is
50. 1:45really price sensitive. So, someone
51. 1:47comes along with like, um,
52. 1:49you know, an offer that's $5,000 less
53. 1:52than ours, and they'll go with that
54. 1:54instead of ours, even though we can
55. 1:56provide
56. 1:57>> Yeah.
57. 1:57>> I would perceive as more value because
58. 1:59we actually have stronger communication,
59. 2:02which is very rare in the construction
60. 2:04industry.
61. 2:04>> Yeah, heard.
62. 2:06Can I Can I cut you off cuz I cuz I I I
63. 2:07want to help you out uh cuz I'm pretty
64. 2:09sure I know what you need to do.
65. 2:11>> Please, go ahead.
66. 2:11>> Okay. So, the thing is is that like for
67. 2:13sure you're providing more value. They
68. 2:14just don't know you're providing more
69. 2:15value. So, it's a communication issue.
70. 2:16So, we have to frame it. And so, I'll
71. 2:18I'll I'll explain it differently. So,
72. 2:20number one, we have three vectors of
73. 2:22value, right? We have risk, we have
74. 2:24ease, and we have speed, right? So, you
75. 2:27want to win on one or more of those,
76. 2:29ideally, in terms of your core
77. 2:31deliverable. Now, for the business that
78. 2:33you're in, I'm going to bet that speed
79. 2:36and risk are going to be the maybe even
80. 2:38actually you have a vectors in all
81. 2:39three.
82. 2:40We need to basically calculate the cost
83. 2:42that they have to incur over a longer
84. 2:44period of time by using a competitor
85. 2:46versus using you. And so, when they
86. 2:48factor that into the overall price, it
87. 2:50should be a steal. Does that make sense?
88. 2:53>> I think so, but I would love an example.
89. 2:55>> So, let's say that because the
90. 2:57communication is poor on It's like this
91. 2:58is where our industry averages and stats
92. 3:00stats are super valuable from a selling
93. 3:01perspective. I'd say, "Okay. It turns
94. 3:04out the average commercial refrigerator
95. 3:05breaks down once every, you know, 9
96. 3:06months or every 18 months or whatever
97. 3:08the number is, right? It says like now,
98. 3:09unfortunately, every 18 months though,
99. 3:11it costs 30% of the average, you know,
100. 3:13commercial refrigerator in terms of
101. 3:15price to fix it or I don't know again, I
102. 3:16don't know what the price is, right? And
103. 3:18so, the thing is is that with the vast
104. 3:20majority of other people, they're going
105. 3:21to uh save you a dollar today and cost
106. 3:25you $4 tomorrow. I'm going to charge you
107. 3:27$2 today and save you $4 tomorrow."
108. 3:31>> Good to hear.
109. 3:32>> And then that way you can you can price
110. 3:34in the savings of the additional
111. 3:36services and value that you provide.
112. 3:39>> Yeah.