Why Customers Can't See the Value You're Delivering — Transcript

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1. 0:00Hey, commercial refrigeration. That
2. 0:01sounds 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. Sounds interesting.
8. 0:12My heck, 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 it's 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. 1:00per ticket commodity, but um it is in a
30. 1:04in 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 uh
37. 1:20workshop and it gave me some good advice
38. 1:22about
39. 1:23>> Yeah.
40. 1:23>> the selling bonuses which I
41. 1:24>> Yeah.
42. 1:25>> Yeah. Um got two new clients out of
43. 1:27that. So
44. 1:28>> I tried to work on the referral bonus,
45. 1:30got a $100,000 client and a $50,000
46. 1:33client.
47. 1:34>> So you ROI'd the uh the day. Fantastic.
48. 1:37>> I did. I did. And then the challenge was
49. 1:40um that the client, one of the clients
50. 1:43that I did pick up from that is really
51. 1:45price sensitive. So someone comes along
52. 1:47with like um
53. 1:49you know, an offer that's $5,000 less
54. 1:52than ours and they'll go with that
55. 1:54instead of ours even though we can
56. 1:56provide
57. 1:57>> Yeah.
58. 1:57>> I would perceive as more value because
59. 1:59we actually have stronger communication,
60. 2:02which is very rare in the construction
61. 2:04industry.
62. 2:04>> Yeah, heard.
63. 2:06Can I Can I cut you off cuz I cuz I I I
64. 2:07want to help you out uh cuz I'm pretty
65. 2:09sure I know what what you need to do.
66. 2:11>> Please, go ahead.
67. 2:11>> Okay. So, the thing is is that like for
68. 2:13sure you're providing more value. They
69. 2:14just don't know you're providing more
70. 2:15value. So, it's a communication issue.
71. 2:16So, we have to frame it. And so, I'll
72. 2:18I'll I'll explain it differently. So,
73. 2:20number one, we have three vectors of
74. 2:22value, right? We have risk, we have
75. 2:24ease, we have speed, right? So, you want
76. 2:27to win on one or more of those ideally
77. 2:29in terms of your core deliverable. Now,
78. 2:32for the business that you're in, I'm
79. 2:34going to bet that speed and risk are
80. 2:36going to be the Maybe even actually you
81. 2:38have a vectors in all three.
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. 2:56>> So, let's say that because the
90. 2:57communication is poor on like this is
91. 2:58where 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 it
102. 3:16again, I don't know what the price is,
103. 3:17right? And so, the thing is is that with
104. 3:19the vast majority of other people,
105. 3:21they're going to uh save you a dollar
106. 3:24today and cost you $4 tomorrow. I'm
107. 3:27going to charge you $2 today and save
108. 3:29you $4 tomorrow.
109. 3:31>> Got you.
110. 3:32>> And then that way you can you can price
111. 3:34in the savings of the additional
112. 3:36services and value that you provide.
113. 3:39>> Yeah.
114. 3:39>> If you like this video and you're
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125. 3:56business owner, appreciate you and
126. 3:58enjoy.