You Need to Hear No More to Make More Money — Transcript

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1. 0:00I should be broader in terms of who I'm
2. 0:04selling to, right? So I'm going to
3. 0:06instead of niching down, I'm going to go
4. 0:09broader. So instead of selling just to
5. 0:11gym owners, I'm going to sell to any
6. 0:13fitness professional, right? Or even
7. 0:15wider, any business owner. And so I can
8. 0:17talk to this because I've gone through
9. 0:18this experience, which is that first
10. 0:20off, if you ever are going to go
11. 0:21broader, which I'll make my cautionary
12. 0:23tale of why it's probably not a good
13. 0:24idea, is you need to earn the right to
14. 0:26go broad, right? It's like first I
15. 0:28started with weight loss and then I
16. 0:29started with gym owners specifically,
17. 0:31and then and only then I talked to
18. 0:32people who sold to niche lead gen, which
19. 0:35was in Allen, which was that business,
20. 0:37the software company. And then and only
21. 0:39then after we had the exit could we then
22. 0:40talk about business in general because
23. 0:41at that point I'd already scaled an
24. 0:43e-commerce business to $20 plus. I'd
25. 0:44scaled brick and mortar to
26. 0:46you know, six plus locations on my own
27. 0:48that were probably held. I had the the
28. 0:50B2B consulting side and in gym launch
29. 0:51that it scaled nationally. And so it's
30. 0:53like I had these different examples and
31. 0:54we had Allen, which was an agency
32. 0:56related business, which was SAS. And so
33. 0:57I had these very disparate examples that
34. 0:59allowed have credibility to then speak
35. 1:01more broadly. It's very difficult to
36. 1:03just say, oh I'll just talk broadly
37. 1:05because what ends up happening is you
38. 1:06talk to no one. And I can say this
39. 1:07firsthand, it is much more difficult to
40. 1:10be able to go deep on many different
41. 1:13subjects, which is something that
42. 1:15I'd say I've been able to do relatively
43. 1:17disproportionately well to the market,
44. 1:18which is why you know, we have the you
45. 1:20know,
46. 1:21audience we do. I'm saying so I think
47. 1:23that it is much easier to win in an
48. 1:25arrow pond. Now, there's significant
49. 1:27benefits to this counterintuitive
50. 1:29solution. So in order to make more
51. 1:30money, you get narrower. Why would you
52. 1:32get narrower? Because when you get
53. 1:33narrower, you can sell the same thing
54. 1:35for more money. Hear me out.
55. 1:38So a classic example that I love that I
56. 1:39I I took from Dan Kennedy a few years
57. 1:41ago is if you had a ten time management
58. 1:43course, right? You could sell time
59. 1:45management. That's selling to everybody.
60. 1:46That's maybe a $19 or you know, $100
61. 1:49thing at most. If I sold time management
62. 1:52to sales reps, maybe it's a few hundred
63. 1:55dollar thing, right? If I sell time
64. 1:58management to outbound sales reps, now
65. 2:00it's maybe a thousand or several
66. 2:02thousand dollar thing. If I sell time
67. 2:04management to outbound sales reps who
68. 2:08sell power tools and garden uh
69. 2:11materials, then I could probably charge
70. 2:13$10,000 for that, right? And the idea is
71. 2:15that as you go narrower, the relevance
72. 2:18to the prospect goes up, and so the
73. 2:20perceived value also goes up, too. And
74. 2:23so we think about the value equation of
75. 2:25We've got dream outcome, we've got
76. 2:26perceived likelihood of achievement.
77. 2:27When you niche down, you jack up the
78. 2:29value and perceived likelihood of
79. 2:30achievement. The likelihood that they
80. 2:31believe that your thing is going to help
81. 2:33them goes through the roof when you're
82. 2:35only talking about their specific
83. 2:36problems and their specific benefits,
84. 2:38right? That's the jam.
85. 2:40So,
86. 2:41um
87. 2:42you want to sell fewer products. You
88. 2:44want to uh rather than more to make more
89. 2:46money. You want to sell You want to
90. 2:47niche down rather than broadening uh in
91. 2:49order to make more money. Now, here's
92. 2:51one that obviously uh I I will speak
93. 2:53from the soul on this,
94. 2:54um which is that
95. 2:57you will, in order to make more money
96. 2:59and specifically more profit, you need
97. 3:01to hear no more than you need to hear
98. 3:03yes. And so, many times people think,
99. 3:05"Okay,
100. 3:06uh you know, I'm closing at 50%. In
101. 3:08order for me to make more money, if I
102. 3:10can close at 80%, I should do that." If
103. 3:12you're closing at 80%, you should raise
104. 3:14your prices.
105. 3:16And so, counterintuitively, if you're at
106. 3:18that percentage, you should actually
107. 3:19raise your prices to hear no more to
108. 3:21make more money.
109. 3:22I know, counterintuitive. And so, if
110. 3:24you're listening to this, you're like,
111. 3:25"Wow, these are all probably not the
112. 3:27decision I would make." And to be clear,
113. 3:28these are all mistakes that I made at
114. 3:29each of these situations and done it
115. 3:31multiple times, and only through saying,
116. 3:33"Listen, I tried every intuitive
117. 3:34solution up to this point, and none of
118. 3:36them have made me more money. Why don't
119. 3:38I just try something in totally
120. 3:39different?" Then and only then I would
121. 3:41have this breakthrough, and then all of
122. 3:42a sudden we're making more money.
123. 3:44And so, we we have to
124. 3:47be willing. And again, a lot of these
125. 3:49things, because they're
126. 3:50counterintuitive, it's because they're
127. 3:50anti some sort of human emotion. We
128. 3:52don't want to hear no, and so we don't
129. 3:55want to raise price. But when you do the
130. 3:56math, if you can double the prices and
131. 3:58your and your close rate cuts by 25%,
132. 4:00you make more money for two reasons.
133. 4:02One, every customer is paying you more
134. 4:03money. And but number two, your cost
135. 4:05basis should go down by at least 25% cuz
136. 4:07you have 25% fewer customers to service.
137. 4:09Right? So margins expand double because
138. 4:11of that. All right? And so um this is
139. 4:13why pricing is by far the strongest
140. 4:15lever. But it is a counter intuitive
141. 4:17thing. That's why most business owners
142. 4:18don't do it. They haven't revisited
143. 4:19their pricing in a long time. By the
144. 4:20way, there's a direct correlation to how
145. 4:22often you test price in a business and
146. 4:24the overall profitability of the
147. 4:26business. Kind of interesting. So
148. 4:27there's a great chart that ProfitWell
149. 4:28produced where basically people who
150. 4:30never look at price least profitable,
151. 4:33the people who test price annually more
152. 4:35profitable, the the people who test
153. 4:36price quarterly, and then the people who
154. 4:38test price in real time and have pricing
155. 4:39committees that full-time are dedicated
156. 4:41to figure out what they should charge.
157. 4:43Right? I mean, it's literally the amount
158. 4:45of money that you get for the thing and
159. 4:46and it's for some reason the thing that
160. 4:48people think about least often.
161. 4:51All right. Another counter intuitive If
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174. 5:11enjoy.