Many salespeople (read: damn near Everyone) undersell themselves, then wonder why/complain about the fact that they’re not earning what they want financially.
Today’s episode is the start: raising your prices. Asking for more. Expecting more. Demanding more. And actually getting it.
Sound interesting? Then today’s show is for you.
[Transcript] #1102: Raising Your Prices – The Logical And Emotional Understanding Of Why
[00:00:00] Doesn’t get any better than what you’re doing right now because you’re tuned into the show where you learn the discipline to show what they have to day to do the work the confidence to put yourself out there boldly and authentically in the mental toughness to continue showing up doing the work putting yourself out there even when the success is expected to achieve is yet to be achieved. And on top of all this you to use those personal initiative. This is a go getter energy that moves you to make things happen instead of waiting for things to happen. Putting all this together you get the mindset the method the podcast known as work on your game. My name is Dre Baldwin also known as Dre All Day. Today’s topic as I told you in the previous days.
[00:00:34] Today we talk about raising your prices. This is a topic that are tailor made specifically for the entrepreneurs freelancers. Anyone who offers products and or services as part of your business or especially as a main part as the bulk of your business.
The challenge of raising your prices on notice is a big challenge for a lot of people who sell. Whether that’s direct one to one services even if you’re selling products and you feel like your product could the price could be a little bit higher but you have the challenge of it. Here’s the thing I’m going to make sure we get the cat out the bag from the beginning. I know everyone understands that logically how you can raise the price if you charge and five dollars you can start charging 10 dollars. I know it is that simple but it’s not that simple at the same time and what the biggest challenges for a lot of entrepreneurs freelancers people who could stand to raise their prices but are not doing it are not raising the prices. That is a mental challenge. Maybe you feel you’re not good enough to raise your price. Maybe you feel practically that if you raise your price too much or if you raise the price at all the clients slash customers that you do have right now will go away because they said Well now the price is a little bit too high for me. Maybe you feel that you’re just not as good as someone who has a price a little bit higher than yours if you’re charging five dollars to keep the numbers simple and there’s someone else in your field who is charging 10 dollars and you feel that person is a lot better than you.
[00:02:04] Then you may not be comfortable even going up to eight hours or even up to 10 or more for big going up to 12 higher than that person because maybe they’ve been in the game longer to you maybe to have more fans and you got more followers on social media than you. It seems like they’re making more money to you. They may have more credibility whatever you consider to be credibility and may have more that than you. So you’re playing a comparison game. You’re feeling inferior to that person. So you’re like I can’t get anywhere close to where they are. So wherever they are I may use that as a barometer for myself. I understand it all these are challenges and I’ve heard all of these come out of the mouths of freelancers and entrepreneurs who could stand and charge more than what they’re charging. There’s nothing everybody can stand in charge more than what they’re charging honestly. And today I’m going to help you deal with that challenge with of course these points I’m going to lay out and I have one to look out for and I’m going to lay out here today so let’s get right into it again. The topic today is raising your prices how to get yourself mentally in the space of raising your prices what we’re talking about because again logically you know if you just change the the one two or two or to tend to a 20th and your prices raise is done okay is that simple. But is the mental challenge you getting over that mental hurdle of feeling like you can actually do this and that it will actually quote work unquote unquote.
[00:03:18] Point number one. If you are not turning people away from coming to your product or service because their prices are out of their range your prices are too low.
[00:03:30] No one would let that one sink in. And I’m gonna say it again.
[00:03:35] If you are not if you are a service based entrepreneur service based freelancer you’re freelance. I guess you’re always given a service.
[00:03:43] If you’re not turning people away they’re not people who are saying directly to you Look I really like what you do. I’ve heard great things about it. I know I want what you are offering.
[00:03:53] The problem for me is this is your prospect talking and they’re not saying to you my problem is even though I want it I just can’t quite afford it your price is just a little bit higher than my budget or the funds that I have available right now. If you’re not having people say that to you and you’re offering a service as your business your prices are too low.
[00:04:14] So in other words in essence exactly what what you think I’m saying. I’m saying that if you’re not turning people away you don’t have prices that are a little bit too high for some people it everybody who comes to you can afford what you’re selling your prices are too low. Now why am I saying.
[00:04:28] Is this just in ego thing is it just me or is this just a mind fuck that I’m telling you that you should adopt and using yourself. Well you could look at it that way. It can be an ego thing. Absolutely it can be a mindfuck. It usually yourself. Absolutely but is also what we call it a supply and demand curve. What’s I think all of you learned in some form of economics or finance class when you were in school. I think for some I came across supply and demand curve as in like 7th grade or something like that. I don’t know what schools you all went to but supply and demand curve is very simple. There’s a certain amount there’s a sweet spot on a supply demand curve you can go google the curve so you can understand this and maybe read up about it because I’m not a finance or economists finance expert or ECONOMIST Although explain it in as basic terms as I can that when there’s a certain amount of demand the demand will continue to go up until it hits a certain level of supply and is a those two lines cross and it’s hard for me to explain this verbally without having a graphical representation as I’m telling you to google it. But there is a certain level of supply that means product or service that is available and it means you that is available to what you demand will come and meet it.
[00:05:35] There’s a certain point at which your supply and your demand will be met number of people who want to buy an amount that is available what is a sweet spot where those two lines cross because the amount of supply that’s available goes down the more it is demand. Right. If we just think about it put it this way your money supplies the time that you have you who is offering a service you personal trainer you client you speaker you coach your supply is for you. You have 100 percent 24 hours a day is 100 percent available right now because nobody’s bought from you but as soon as somebody buys from you your supply goes down because you had to give let’s say two hours to that person and now you only got twenty two hours left. All right. Now the next person who buys me they get another two hours and now you only got 20 hours. So now you’re every time the demand goes up meaning you’re selling something. The supply goes down because you had to give a little bit of what you had. Everyone understand what I’m saying here as I’m explaining supply and demand.
[00:06:24] So that gets to a point. There’s a point for anyone who’s offering something that is in a limited supply no matter how much says supply is if there’s a finite supply there comes a point where the demand and the supply actually meet there’s a certain amount of demand and a certain amount of supply and that’s the sweet spot that you want to get so you don’t want to be at the point where there’s so much supply but very little demand there’s more supply and demand that means you don’t have enough customers clients et cetera coming your way. And if there is more demand then there is a supply then that means your prices are probably too low because you got all these people want to buy from you yet you can’t even service them all you can’t even give them everything that you need if you’re at that point then you probably already know you need to raise the price you might have already done it. Now what I hear a lot of entrepreneurs are freelancers say to me when I explain this concept of raising your price is that they say they want to get to that point where the demand is so high that it makes perfect logical sense and everything is like this one two three color by numbers thing that OK.
[00:07:21] Now it makes perfect sense for me to raise my price so here’s the problem is that you may never get to that point if you keep waiting for that to happen. If you need that to happen before you raise your price you may never raise your price. You okay. I need to have so many customers that I have to raise my price just to quell this demand that is coming my way. I mean that wouldn’t it be a perfect problem to have. The problem is you may never have that problem. And thing is is in the game that you’re in being an entrepreneur. Being a freelancer being in business is the game I want to have X number of customers just to say that I have the customers or just to say I have the clients or just to say that I had so much business that I was forced to raise my price. You just what is the game for you to have one of those first world business problems or is the game for you to make a certain amount of revenue and also have a certain amount of times you can actually live your damn life. What’s the game that you’re playing here.
[00:08:10] Because if the game is I have to get a certain number of customers I don’t know to validate yourself before you feel you’re worthy of raising your price then I have no further conversation for you.
I can’t help you with them but I can’t help you with if you’re trying to create some time for yourself and some space for yourself and some leverage in your life leverage meaning you have assets working on your behalf when you’re not the one doing all the damn work which I thought was a problem in the first place. Then this is this is the principle that you need to follow if you’re not turning people away. People are not saying listen I want to work with you but your price is just a little bit too high or you know you’re ever going to give a discount. Or how can we if you don’t have people asking or just letting you know lamenting that they can’t afford you because a price to order your price is too high.
[00:08:51] You should be turning people with. A wise man once said Your prices are a filter for the people with whom you want to work. You should be turning people away due to your price because your prices listen too closely to what I’m saying here. They are a filter for the people you want to work with. In other words let’s just use an example of a let’s say you’re a lawyer and you turn the movement use of lawyers. Understand that one deeply enough I’ll have enough. So I say you’re a personal trainer okay. You’re a personal trainer. You train yoga. You train basketball you train boxing you train wrestling MDMA whatever your fees.
[00:09:30] How much it cost for an hour of your time to train somebody is not necessarily about well you studied the market and you’re comparing your price to this person’s price or this is what everybody in my city is charging so much charge a little bit more or a little bit less. I want my prices to be competitive with all my all my colleagues and fuck all that.
[00:09:49] Okay. You don’t. Don’t make your prices based on what everybody else is known as ridiculous. Then you just become one again and then eventually you going get in a race. You got to compete against them in order to get clients you will want to be an SBC your prices are a filter meaning you raise your price or lower your price based on the type of people who you want to be working with because there’s a certain level of person who will pay ten dollars an hour and there’s a different level a person will pay 100 dollars an hour. So you raise or lower that price you up or you basically scale up or scale down that filter your price being a filter. Tuning it based on the type of clients you wish to attract the type of prospects you wish to have a conversation with because listen when your price is ten dollars there are certain people who are going to come to you and just be and give inquiries no inquiries into what you’re offering you may or may not buy when you price one hundred dollars there are some people who will never even look twice at you because soon as they see that 100 they like that’s that’s out of my range outside of my budget I definitely can’t afford that.
[00:10:48] They’re not even gonna think twice about it but there are other people who say one hundred dollars you know what I’m looking for somebody who charges that much because it’s a signal to them. Price is a story and price is a signal.
[00:10:59] There’s a book that I told you all about months ago called. This is marketing by an author by name of Seth Godin. And if you read my book work on your game you’ll see Seth’s quote actually on the very cover of my book The blurb that they call it from my book Self. Seth is a genius in marketing. He’s a legend in the marketing space. If you haven’t heard of them go look them up. Go read his book is called. This is marketing.
[00:11:21] He has a blog he blogs. Everyday he races really short posts look up Seth and one of the things that he says about price is that it’s not about the economics or even a supply and demand curve. I don’t know if he talks about that often but what he talks about is price is a signal because when you price again it’s ten dollars then you’re given a signal to people who want to spend ten dollars on that thing.
[00:11:41] Hey this might be for you when your price is a thousand dollars. You’re giving a signal to people who look for thousand dollar products. They’re not even thinking about a ten dollar product as they’re the type of person who’s saying no anything to call. Ten dollars is probably not worth it. There’s other people who say the cost ten dollars that’s exactly what I want. So who are you trying to attract. So it’s not about whether somebody will pay it or not listen any price there’s somebody out there who will pay. There’s somebody out there who will pay any price you could possibly set. The question is Who are you trying to attract. Who are you actually trying to work with. Who do you want to service. Because the price is going to tell you what type of people you’re bringing in. And if you don’t like the type of people you’re bringing in what you may need to do is raise that price. Actually not what you may need to do. What you definitely need to do. Your prices are a filter they’re a signal to the people who you want to attract and their story all prices as a story ladies and gentlemen prices you are able to charge what you charge because you have the certain story behind that number and there’s somebody else out there charging ten times what you’re charging. And the only reason they’re charging 10 times is not necessarily because they have so much demand that they have to not because of their resumé not because of their credibility not because of their social media followers it’s because they got a different story that other people their customers their clients have bought into that says you know what it is worth 10 x whatever you’re charging.
[00:12:59] All prices is a story and a signal and a filter is overdosing. So I can’t say all it is price is a story a signal a filter. If you’re not turning people away with your filter your prices are too low.
[00:13:12] Your filters. You got to turn your filter on your filters not on your spam filter. It’s not turned on all the spam is getting through any of you who are entrepreneurs service based entrepreneurs freelancers. Have you ever taken money from a client or customer who you ended up in the long run. Like damn I wish I hadn’t even taken this person’s money it wasn’t even worth the money. The amount of headache that that person brought with them I know every single one of you is nodding your head right now. Have you ever had a prospect sitting in front of you offering you their money and you knew your gut was telling me you don’t take this person’s money because they’re going gonna be more of a headache than the money is even worth. And you took the money anyway.
[00:13:51] I know you did. I know you did don’t lie. I know you did. You need to raise your price because that puts a filter up to keep people like them away from you.
[00:14:00] That’s why you need to raise your price. You don’t want everybody. You don’t need everybody to be on your audience you just need the right people in your audience now. This is gonna take a little bit of work on your behalf. Who are the people that I want to service. Who are the clients that I want to actually have on my client base who are the people I want. Listening to my staff who are the people that I’m not buying from me who are the people that I want calling me and I’m gonna sit and spend two hours with these individuals. It’s not just about you getting the money and you doing the work but is also your giving your giving and taking energy to and from whoever you’re dealing with. We aren’t providing a service if you don’t like the people you’re giving a service to. You’re going to grow to hate your job hate your business then I mean would you even start a business for in the first place.
[00:14:40] I mean you can go work somewhere it is on a farm and have a boss who you don’t like telling you what to do all day and do stuff you don’t want to do all day with much less responsibility than having your own business. So that’s why you need to have those so many reasons why you’re using his price as a filter. I think I’ve laid out a bunch of them right here. You’re not taking notes on as reminders sort of beginning and take notes on these things that I’m talking about.
[00:15:01] High prices are a way to keep low quality clients off of your client roster slash customer was any of you who’ve dealt with cheap clients or cheap customers you can understand the value of cutting those people off even though it means you’re gonna lose out them on their money whatever money they’re bringing to the table.
[00:15:18] Point number two. Today’s topic is raising your prices as an entrepreneur or freelancer especially those of you who are service based business people. How do you justify the.
[00:15:29] Because people still come back says despite everything that I’ve just said already people will still come back. Give all of that and listen. This is not theory. Ladies and gentlemen I’ve sat and had this exact conversation with entrepreneurs. Just recently I had a conversation just like this with an entrepreneur. Everything I just told you I told this person. And you know what they said after all that they said well how do I justify it. Dre How do I justify raising my price even at everything not just thought I pretty much justify I thought it was open and shut case and is what they said me.
[00:16:00] How do you justify raising that price. Talk about Amazon. Everybody knows Amazon right. Amazon offers this this service called Amazon Prime a premium service so you can use Amazon. You can get prime and Amazon Prime What do you get. You get free two day shipping on Prime eligible orders which is damn near everything in the Amazon store. You get what else they offer you get Amazon music you get some kind of Amazon cloud storage is a whole lot of things you get with your Amazon Prime membership they’re always email me telling me all these benefits that I get from my members the only thing I really want is the free two day shipping because I buy off Amazon often and it ends up overtime adding up and actually being worth an Amazon prime when it first came out. I don’t know if anyone remembers but it used to be seventy nine dollars a year. One year seventy nine dollars all you had to do was add up do I ship that often do I buy things often enough the seventy nine dollars is actually worth it for me the answer was yes. So I got Amazon Prime and been using it ever since then Amazon a couple of years later they made an announcement I sent an email out and let everybody know you know the Amazon Prime at you rate the cost seventy nine dollars a year. We’re raising the price now is ninety nine dollars a year.
[00:17:09] You want Amazon Prime instead of 79. You got to pay ninety nine now. As of today’s recording as of the date that I’m recording this it might change by the time you hear it. Amazon Prime is one hundred and nineteen dollars a year from seventy nine to ninety nine to one hundred nineteen dollars. Where do you think Amazon Prime’s price will be let’s say in 2025 where we’ll be in 2030. We don’t know but I guarantee you one thing is probably going to go up that I’ll bet on it. If I can get odds in Vegas on Amazon primes primes price going up. I’ll probably take those I depend on if I know how heavy those odds are. But that price is going up at the United States Postal Service. I was standing on the day and somebody ordered a stamp. They itemize I just need one stamp and I have not ordered stamps. I don’t know if I even I have a book of stamps. I think that’s collecting dust in one of my cabinets. I don’t usually send letters individually but this person ordered a stamp in the last I remember of a stamp. Well let me tell you what the clerk said when this person said they want to send you said a stamp is 55 cents. Alas I remember buying stamps though as I remember buying an individual stamp. The stamp was twenty nine cents.
[00:18:21] The USPS has them there doubled the price of stamps now no twenty nine cents long on top of those and when I was like a child and has gone up several times since then incrementals is a little bit up up up. Now is that 55 cents USPS in other words the point that I’m making. They then doubled their prices since I was young and I’m not that old. Whole Foods clothing housing Amazon the price of everything in life. I mean you can tell me if I got this wrong is going up in general all prices are going up. There are some things maybe I don’t know. There are some things now that are cheaper than they used to be for example. You used to buy a whole set when I was growing up we had a set of encyclopedias in my home growing up. Nowadays I don’t know how many people own encyclopedias are investing encyclopedias because you got a website called Wikipedia that basically gives you audio encyclopedia crowd source encyclopedia free on the Internet so that the price of that went down instead of buying a whole set for I don’t even know how much a set of encyclopedias because now you can get it completely for free instead of having to buy a Yellow Pages or even invest space in your home in a yellow pages or white pages book but now you can just go on a website like Google and you can get on information on a business or even a person if they’re out there on the grid.
[00:19:30] So those things the prices have gone down before that a lot of physical goods the prices have gone up housing costs more now than it costs back then in in aggregate I’m saying I mean maybe not every house some house values have gone down but a lot of money can’t come up and new housing is costing more than new housing costs 20 30 50 years ago Amazon we already talked about the price of groceries has gone up. I remember my grandmother once told me that she would go to the movies and it costs 10 cents to see a movie not ten dollars 10 cents to see a movie. And I don’t know where you live but I don’t think you can get into any movie for 10 cents these days. I don’t think that you pull some change out there looking at you at you crazy to see this in the price of everything is going up. That’s the point that I’m making here. If your prices are not going up along with it with a linear relationship to the price of everything else in life going up how does that even make sense. That’s a that’s a rough equation. That equation is not going to turn out too well for you.
[00:20:28] If the price of everything like what it cost to live what it costs to eat what it costs to entertain yourself would it cost to put food on your table what it costs to take care of your kids what it costs to be sick what it costs to be healthy what it costs to be born what it costs to die if the costs of all of those things are going up in aggregate over the last 10 20 hundred years they’re always going up we call it inflation rate how are your prices going to stay the same.
[00:20:54] And here’s the thing. People if your prices are only going up at the same rate that the price of living is going up then we call that breaking even because the price of living goes up by 10 percent so your prices go up by 10 percent. Well then you didn’t get any better. You still in the exact same position you were in before everything went up and before your prices went up you’re still an exact same spot. So your prices your value and thus your prices need to be going up faster than the costs of living. The cost of running your business the costs of being who you are.
[00:21:23] You understand it. If your prices aren’t going up as fast as that then you’re essentially you’re losing. The treadmill is gone a little bit fast and you’re capable of running. Now you’ve got a problem. Now you listened to this podcast everyday. I can tell you how to increase your value. I tell you every day how to increase your value whether that’s in your internally with your mindset but also externally with the things that you’re actually doing the tactic strategies and tips your prices need to be going up fast and and everything else is going up and give you a hint. Prices have gone up today. So if your value didn’t get better today than you was today.
[00:21:54] Point number three.
[00:21:55] Today’s topic is raising your prices for your service based entrepreneurs freelancers small business owners. Number three I said in episode number eight hundred and thirty five The whole episode was titled your prices too. So if you haven’t heard episode eight hundred thirty far go to Dre All Day dot com slash and just put the number to episode listen set out or go to Dre day dot com sized podcast where you can see the archive and we’re organizing those and putting them in two packs that you can purchase in packs of both packs of 10 maybe smaller packs maybe Rajapaksa. We also gave you a transcription and a summary of each episode that is in that pack that are all organized by categories so those you who have looked at the number of episodes we have and said Damn this is too much for me to sift through we realize that so we’re doing some things to help you out with that. Again I said Dre de dot com slash podcast point number three. I said Nate 35 that your price is too low.
[00:22:44] I understand it every time that you prove yourself your price should be going up every time you prove yourself at the one dollar level then your price should go up to two dollars and you should go up to three initially go up go up to four and go up to five. That’s enough justification as far as I’m concerned. Nowadays people out there. You ask yourself this question who are who are not as good as you or maybe equal to you at the worst and they charging two or three times what you’re charging.
[00:23:08] You can answer yes cancer right. So it’s not hard for you to understand logically that it makes this enough logical justification for you to raise your prices. How many different and how many different numbers do you need in this combination lock in your mind to say I’m want to raise my price and this is the thing whenever I talk to some entrepreneurs who have this challenge mentally of raising their price they’re right. Well yeah that part makes sense but what about this this is like they got 10 numbers you got to get right on a combination not to ever raise their price and you’ll never raise the price if you got to hit all these these fucking parameters to raise the price. You only need one good reason. In life I heard Mark Cuban who is a wanted to sharks on Shark Tank say listen you only got to be right once you only got to get lucky once in life. When it comes to raising your prices you only need one good reason. One logical reason there’s somebody out there who is just as good as you are equal to you. You’re just as good as them is a better way to put it. And they’re charging more to you than. How can you justify not charging more. How can you justify not raising your price above theirs. How could you not. What sense does it make for you to charge that someone is somebody out there charging more than you and then not better than you just one reason is enough.
[00:24:16] Is the emotional understanding of it that people don’t grasp though and that’s what I talked about at the top of his episode.
[00:24:21] It’s the confidence that you need to instill in yourself to believe that you are worthy of charging two times four times ten times the amount that you’re accepting today and I’m going to just give you a small hint. Once you develop that confidence and I can help you with this. Once you develop that confidence to believe that you’re actually worth two times eight times ten times 100 times whatever you’re charging right now everyone you come across they’ll believe it too. But the fact is right now if you don’t believe it nobody else is going to believe it. Self-esteem confidence self belief your self-image whatever phrase you want to use for it is a self fulfilling prophecy. If you believe that everybody else is gonna believe it. If you don’t believe that nobody else is going to believe it.
[00:25:08] That’s literally exactly how it works. I could give a speech on confidence and that can be the whole thing. That 30 seconds right there and that’s everything that you need to know. The question and with our big brains as humans is oh how I do it. What about this and what about that and all these damn contingencies. But it all boils down to what I just said it is a self-fulfilling prophecy.
[00:25:26] You believe you’re worth a dollar than everybody else is going to be willing to pay you a dollar you believe you’re worth a dollar and you try to charge us five dollars. Nobody’s gonna pay that five dollars because they can tell that you don’t believe you’re worth it.
You believe you’re worth five dollars. Everyone you come across will agree with you. Now they might not half of ours but they’ll agree to your word Fido. These are the people I will say listen I know you’re great and I know you’re worth it but I just can’t afford it. You should be having those conversation. Nobody has said that to you over the last year. You need to raise the price. Have I said that often enough. Point number four. Today’s topic is raising your prices. Entrepreneurs freelancers service based people if you really want to help people with your product or service because sometimes when I talk about this sometimes people say Well to me it sounds kind of know shark ish Dre sounds like.
[00:26:11] I mean you’re I understand making money but I’m not all about the money. You know I want to help people. I want to give value to people I want to make sure I’m reaching people. It’s not just about how much money I can get out of people people. This is people’s kind of defense mechanism that they say something like this as if I’m trying to advise them to just be greedy and get all the money you can get out of people just for the purpose of getting money out of people.
[00:26:32] But listen to what I’m saying here. If you really want to help people with your product with your service whatever you’re doing it is a requirement of you a requirement not a suggestion not a question but a requirement of you to charge enough that you can be at your best when you show up to deliver to those people and you can’t be at your best when you are under charging for your goods because then you can’t eat sleep train or prepare the way that you would need to.
[00:27:02] So I’ll repeat myself.
[00:27:05] You really want to help people understand. You’re in the game. You got into your business you started doing what you do because you really want to help people you really want to deliver what you deliver is not just about the money the money is part of it is your own business. But it’s not only about the money. So understand this. If you really want to help people it is a requirement of you that you charge enough that you can be at your best whenever you show up to deliver and you can’t be at your best when you’re under charging for what you offer because then you’re not eating the right way sleep in the right way. Training the right way prepare in the right way that you know you need to in order to deliver at your best for these people whoever your customers clients audience happen to be. So what do you value more you value more being able to say that I keep my prices low so quote unquote everybody can afford it. Or do you value more helping as many people as you possibly can at your highest possible level which one matters more to you. Now I know you want to do both but if you had to pick one which would you pick which one goes first. And what’s more you go second low having the lowest price or something that is quote affordable unquote for other people or is it helping the most people as possible in the highest possible way at the highest possible level. And understand that people that you price out so to speak when you raise your prices. There are other ways to service those people. How much do you pay to listen to this. You can’t help people if you’re not eating right yourself. When I say eating I’m talking about literally food eating but also everything you need to do to be at your best if you’re not doing all of those things at your best level serving yourself as best you could.
[00:28:33] Then you can’t help other people as best they could be help. You’re not giving them your best. If you’re not at your best and you can’t be at your best when you’re not charging the amount that you need to be charging.
[00:28:44] You deserve to eat well.
[00:28:47] This is another. Another thing that comes out it is that people sometimes don’t feel like they deserve. They don’t feel like they’re worth it. You deserve to eat well because you’re over delivering in what you’re doing right.
[00:28:56] You’re over delivering to your audience. You’re giving your audience more than what you’re even charging for.
[00:29:02] For what you bring to the table you’re giving him a whole lot more. Therefore you’re over delivering therefore you deserve to eat well you deserve to sleep well you deserve to take care of yourself. You are in fact giving more value than what you’re charging. And even when you raise your price still when we give him more value than what you charge. Oh I heard Tony Robbins say that without a margin meaning the amount of money that’s left over after you the cost of goods at a cost of delivering the way you deliver the money that’s left over. Without that margin you can’t afford the mission because the mission is not have the lowest price.
[00:29:37] The mission is I’m going to serve these people more and deliver these people I want to help these people. I want to you have some passion that you want to get out there and see the world without a margin you can’t afford the mission nothing is expensive if you add enough value to it. You hear that nothing is expensive. If you have added enough value to the people who are paying for it.
[00:29:59] See a person who goes into the Toyota dealership and a person goes into the Rolls Royce dealership. They both see what they pay for as being exactly worth what they pay. Probably worth a little bit more than what they pay. That’s why they were willing to make the exchange but the person at the Rolls-Royce dealership is not saying this car is expensive this and this is exactly what I wanted. This is what I want and the people who work at Rolls-Royce and saying we had this price because we’re sending a certain signal to certain people because we want them to buy this car is a certain story that goes with this car. It makes people OK. We’re paying whatever it costs to get a Rolls-Royce. I don’t know. I don’t have one and a Toyota dealership. Same thing as Sam Wilson a certain signal to certain people that we want them to come in and buy this because there’s a certain story that goes with this that makes people happy to spend X number of dollars to get the Toyota. Again I don’t know I’ll have one of those either. You can’t afford the mission without a margin. Nothing is expensive if you add enough value in again. If your story the story of your price. The story of your product or service if it aligns with the story of the customer the client the prospect then you got a good deal.
[00:31:02] Now if your story doesn’t align with the customer or prospect story then I’m gonna buy from you and it doesn’t necessarily mean you got the money just means that they don’t align with that story. The Rolls Royce buyer is not walking into a Toyota dealership. They don’t even notice the Toyota dealership because the story in their mind says I’m going to spend two hundred thousand on a car not twenty thousand. That’s the story. Think about 10 Toyota’s but they decide to buy one rolls because that’s a story in their mind. That’s a signal that they’re getting. They’re picking that up on their G.P.S. and the people at the Toyota say look they might have two hundred thousand two. But you know what I’m a then or some other things. I’m only gonna spend 20 on this Toyota and you know which I give some discounts and get it for 15. Why. Because that’s the story and they’re. That’s the signal that they’re picking up. Nobody’s wrong. Nobody’s right. But understand that there’s a whole range there’s a whole matter you picture a ladder that you can climb up there are people at the top rung of the ladder to people in the middle. There people at the bottom of the ladder. They all need to be served by somebody why not you.
[00:31:55] You can serve them in different ways again. What do you pay to watch a YouTube video. What do you pay to listen to a podcast. What do you pay to follow somebody on social media. Nothing. You can serve those people you can serve the people in a middle range you can serve the people at the top Marines but you got to get your prices up so that you had the margin to afford this mission. Higher price just equals in the mind of some people a higher value. And some people see a lower prices a higher value because that’s the values that they had. That’s what works for them. Again. Who do you want to work with.
[00:32:28] Who are you trying to signal saying send a signal to. And what story are you telling you. Who do you want to hear this story.
[00:32:35] Especially those of you.
[00:32:38] Who had to give give any level of service to the people who buy from you. Understand a year you’re in an energy exchange with those people you had to deal with those people you had to serve as those people when they buy from you who are the people you want to be working with. Look at the clients you’ve had up to this point that you want more like that or do you want something a little bit different. If you want something a little bit different your number has got to change because the numbers that you’re putting out there right now is sending a signal to the type of people that you’ve been working with up to this point. You follow me. Do you want. You want different people you got to send out a different thing or you want Batman you’ve got to put out the bat signal if you want. I don’t know Spider man. You put out the spider signal. I don’t know Spider meaning it has a spider signal but you understand what I’m saying. Let’s recap today’s topic raising your prices is a big challenge for many entrepreneurs freelancers service based individuals who offer any level of product or service number one of you are not turning people away because their prices are out of their range or prices are too low. You should be turning people away due to price alone wise man once said Your prices are a filter for the people you want to work with.
[00:33:40] Meaning your prices are way to keep the clients that you don’t want away from you keep them from even inquiring about you you keep your prices so high that they don’t even think twice about it. If you don’t what a cheap client or a cheap customer who was more headache than they were even worth the dollars that they gave you.
You understand exactly what I’m talking about. Point number two how do you justify though. Listen Amazon with 79 and ninety nine to one hundred ninety for Amazon Prime waiting on be five years from now. United States Postal Service stamp used to be twenty nine cents now is 55 cents damn near double the price of living the price of being alive and in the world has gone up. All right there’s going to keep going up so if your prices aren’t going up you’re losing. Point number three I said as an episode of 835 titled your prices too low every time you prove yourself your price needs to go up. Are there people out there who you are better than who are charging more than you are. That’s a good enough reason that reason alone with no other reason is enough reason for you to say you know what.
[00:34:33] I will raise my prices logically and emotionally is the emotional understanding that people don’t grasp and is really about your confidence. Do you believe in yourself. Do you believe that you’re worth twice what you charge and you believe you’re worth four times to ten times. Apparently you don’t because if you did you would already be charging it.
But I can help you with those things stay close stay tuned. And point number four if you really want to help people with your product or your service is required of you to utilize enough that you can be at your best when you show up to deliver and you can’t be at your best when you’re under charging because you don’t have the margin in order to afford the mission. You need margin to afford the mission you enough margin. You can sleep well at night. The margin that you can eat margin that you can travel and deliver and make sure you’re given the best possible product and have the right people in place to put together your goods and services so that they look and feel the way they need to look and feel based on a price that you’re charging based on the amount of value that you’re giving. If you’re not doing that and you’re shortchanging yourself and your shorts and your customers you won’t end up with nobody.
[00:35:25] No clients if you’re not charging enough nothing is expensive when you are adding enough value again near people who will spend 20000 hours on a car and the people who spend two million dollars on a car. Who’s right and who’s wrong. Nobody is there’s different signals and different stories that those people have. And those are the people who are selling to them. Different signals and different stories higher price for some people is a higher value perception a lower price for some people is a higher value perception or just a better value whatever it is. If you want more margin if you really want to fund your mission so you can really fulfill your passions and do everything that you want to do with your business your prices need to go up. I guarantee you there are people out there who will still buy from you. You want to learn more about how to do this and how to really bring that price to where it needs to be getting the money that you need to get having the margins so you can fulfill the mission raising your price and still having customers and clients who want to buy from you anyway. You need to join a game group Dre or Dre membership.
[00:36:22] You already know. Work on your game. Dre All Day dot.com.
2:11 Today’s Topic: Raising Your Prices The Logical And Emotional Understanding Of Why
4:53 Point I: If you are not turning people away from coming to your product or service because your price is out of their range, your prices are too low.
16:11 High price is our way to filter low-quality clients.
16:28 Point II: How do you justify a high price?
22:54 Point III: Every time you prove yourself, your price goes up.
25:54 Have confidence. If you believe it, everybody else is going to believe it.
28:11 Point IV: If you really want to help people with your product, it’s a requirement of you to charge enough that you can be at your best whenever you show up to deliver. You can’t be at your best when you’re undercharging for what you offer.
35:23 Recap
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The Work On Your Game podcast covers every aspect of Mental Toughness, Confidence and Discipline with 9-year pro basketball player and author of 22 books on the Mental Game of sports and life, Dre Baldwin.
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