Lessons

Lesson Info

Pricing for Best Value & Profit

On the workbook page twenty one we're going to dive into pricing for profit and the cartoon on this one has two gentlemen in the car lot I like it, he says, but I'm looking for more of a status symbol anyway you khun double the price and that's something that we're going to dive right into. So the purpose of this is to clarify your value and put a price on it that really reflects your worth and the value of the transformation that you were delivering and the way this works is that you want to get clear on what your transformation is because everyone in business today provides a transformative service your product provides a transformative opportunity so for example obviously coaches transform in whatever modality they're working and if it's a health coach they're transforming health if it's a business coach they're transforming business if it's a financial services person they're transforming your financial services those are easier to understand than some of the other potential opport...

unities. For example, a photographer transforms by providing photographs that then spur memories so you're transforming someone's experience by providing that and by the same token an artist and the goods that they provide transforms the environment they're in and provides inspiration for the people living or working in the environment so there's always a transformation that's occurring and it's about getting clear on what that transformation is that'll make the biggest difference so what are your services worth? You want to define your value clearly once and for all, and you've got to tie it to the three top priorities that we all has human beings have, and we're going to walk through these right now. The first one is going to be health what's your health worth and the reason I say this is because your services have got to be tied. Your products have got to be tied one way or the other to one of these three health, wealth and relationships there's the three we're talking about right now, and they're the three things that spur all of us to buy everything that we buy. Now your tie in may not feel direct, and it may feel kind of well, gee, melissa, I'm not sure my in wealth and my in health and my in relationship, I'm going to help with all of that. The kate of this is to find out from your client or customer how they value the transformation, service or product that you're delivering before you name your feet before you name the investment, and if you're not clear on being able to ask them what they think it's worth, you might want to go back to some previous clients, or you might want to just do some beta testing. In your marketplace and say I offer a service like this what would that be worth to you? Don't be afraid to ask and find out sometimes will say I have no idea in which case it may be because it's not a priority for them and other times, though clearly tell you so the beautiful part about something like your health is it's priceless, isn't it? When you say what's your health worth its priceless? So therefore, if you sell anything to do with improving someone's health, whether it's a service or product, the value is a tiny percent of priceless, and that makes an enormous difference when you're actually putting a number on it, because it makes it much easier to make that a higher number than a lower number, you don't base your pricing on who your client is and what they can afford, because you want to go for a higher level of market that will value you hire and pay you better rather than swimming at the bottom. We had an interesting question came up yesterday that ties right into this it's about someone who is creating services and products for the young millennials and said they didn't think there was any money in that market, and we clarify that said there's absolutely a lot of money in that market in the right end of it, which is the corporate young millennials especially those who have graduate degrees are making great money and that's where they want to be selling their services of career coaching so that was a really important question that came through yesterday and applies to today's teachings so it's also what's your financial peace of mind worth now I realize that financial advisers can absolutely not market themselves is providing peace of mind compliance issues would prohibit it but it's really and truly what are financial peace of mind is worth and whether it's a financial adviser whether you all right dave ramsey instructor and could tell me how to get out of debt um or whether you've got some other product or program that's tied into wealth and status for example somebody looking for a new car it's often a wealth based decision because it's about their status and they really and truly want to up level their status in a way by buying the right kind of vehicle that people will perceive them in a certain way other people are buying for completely different reasons function economy those are people concerned about wealth and status they're more interested in the relationship that the car is going to enable them to have in their life and in their work. But when you look at financial peace of mind of what it's worth it's priceless to so anything you charge is just a tiny percent of priceless it takes the value from being about you and puts it on being about what the client thinks it's worth and that's really important because what that means is if you're having an off day if you're not feeling confident if you're thinking I just stepped into this new business and I don't have I don't have much experience so therefore I'm not worth much wrong. You're worth a lot because the transformation you provide is worth a lot it's not about your worth it's about the value of the transformation that's a really big leap for a lot of people who were going to dive deeply into that so then it's also about relationships what's the health and happiness of your relationships worth whether its relationship with a spouse relationship with friends relationship with family members relationship with your co workers and colleagues with bosses we have a zillion a one different types of relationships today and it's so important that you create happy healthy relationships whenever possible and ask for what you need and because of the generational gaps today you've got to be aware of how the different generations communicate, whether you're doing business with them or whether he simply interacting with them in a work environment makes a big difference so this is about producing transformation you are the portal of change for your client or customer your product or service and or service because many of you have both your product and or service is the vehicle for that transformation you are a tentacle part of that vehicle and that is a treatable you are the portal of change for your client or customers transformation and transformation is about being wealthier being healthier or being happier it's that simple those were the things that we want life today to be wealthier, happier or healthier from ice trying to fig fit my business to hit one of those three what I'm doing is saving my client's time and frustration showing them how to do something more clearly and more easily I don't see how that his health wealth or relationship yeah but least that you're talking about genealogy and helping them with that relationship all about relationship and how they can explore the relationships to their family members that's a really big deal okay and that's a really big transformation okay um the features that you're bringing are the time saving on the technology pieces of their features not the benefits and the benefits are getting to find out the rest of the story of your ancestors they reckon then bring forward into your life and develop a greater meaning in history there you go that makes sense that it fantastic fantastic so this is also about putting in a place where you're taking somebody from being and old them to a new them old you to a new u just as you here with me for three glorious days of learning thank you, rochelle. The beautiful part about that is when you stepped in here with me, whether you're online or whether you're here live, you're going through a transformation, and I'm leading that transformation through that portal to the other side, you will not be the same person that you were even yesterday with the knowledge that you're receiving and the actions that you're going to take it's very exciting. So this is really in truly about what's it worth, and the answer is priceless, and this is a really big concept to wrap your head around it's a very hard concept to wrap your head around for most small business owners, and especially for creatives, because there's that place where you're caught in the artistry and the creation and you don't want to make it about money, and I get that. But if you're not getting compensated, you can't support yourself and can't have that lifestyle that you want that we created on your vision boards yesterday and that's really important. So this is all about building that business that serves and supports the whole of your life and delivers that lifestyle that you're looking for. So here's some things that I don't want you to base your price on your competition now I know a lot of you. Are probably when you're new in business and even when you've been in business for a number of years you're like, oh, I'm going to check all the competition and I'm going to make sure that I am priced competitively there's a big problem with that your price competitively you better have some other not going out of the ballpark thing that's gonna make you stand out you're going to be one of the flock when your price competitively better to be at the top or the bottom and not in the middle if you notice there's not a lot of middle anymore in the world, we've got the targets and we've got the neiman marcus is there's not a lot of middle ground, the middles going array really fast not saying it's good or bad I'm just saying it isthe you don't want to be in it I encourage you to be at the top it's a little less crowded and you get really great clients to work with and you make a lot more in a lot less time with a lot less effort it just takes a mindset shift to be able to crack that place your mood we all have bad days we all roll out of bed on the wrong side it happens I've actually had days where I got to stop back into my home office and I went into my bedroom and I got into bed I laid down and I got out on the other side because I was like this isn't working for me I'm not having the right kind of day here so you have the same ability you can change the day you're having at any moment in time and if you're not having a good one make a re choice re choose reaches we got that one yesterday re choose the kind of day you're gonna have because it is entirely up to you your experience here's the interesting part about this whether or not you have vast years of experience behind you or you're just starting out transformation you're delivering is still phenomenal so you really don't want tio discount yourself because you're young and new and fresh you can do some beta testing but don't give yourself away just because you don't feel you have years of experience behind you because you're doing yourself a disservice and you're dishonoring the transformative value your education this is fascinating to me. I see so many people out there with certificates and degrees and initials after their name to the emp degree and they are over certified under experienced and they're usually over certified and undervalued and they're not making any money despite other certifications so it is not about getting another degree it is not about getting another certificate unless the field you're in requires that it really is more about jumping in building your business, getting the experience live time through online trainings like this through mentors through live events through books oh my goodness, they still exist that's the reality you have those options take advantage of them don't wait don't put your big dream your big vision on hold because you think you need a degree when in fact you don't you think you need a certificate when in fact you don't? In fact, I have to ensure a funny story years ago, when I was in designed full time, I would put the initials of the groups I belong to on my business card the's words, certifications these were just organizations I belong to to do with the trade, and I would put them after my name because I noticed that many of my colleagues had a s I d after their now I never did that with a s I d because I'm allied a s I d only I'm not in a s I d member s I was careful about it, but clients would like ooh, what there's me, I honestly could have put petey qxc and it would have had about the same impact, but the clients all loved it and think what's happening is because of the words phd and md which we have a lot of reverence as a society for we're used to when we see initials after somebody's name were like who get out of the womb blaze because it really is not that relevant and it doesn't prove anything there are plenty of people out there who have embassies and that's awesome, but there plenty of people out there who don't have embassies who are doing just fine where they are it's not the initials it's the transformation and experience that you deliver so really get comfortable with that and start to appreciate yourself and the gifts and the history that you bring regardless of any acronyms or initials that you've got flying after your name and your talent do not base your price on your talent because your talent is limitless now if it means you're going to try and charge a million dollars, go for it I want to know what happens. Um I think most of us has seen those instances I think there's a book on the market that's like six hundred ninety five dollars I can't remember the topic of it um there's a burger out there that's like a thousand dollars burger and it's got gold on it or something crazy or eaten gold flakes so there are some outrageous things out there today my favorite catalog of all his name in markets that christmas time because they have things like the eighty thousand dollars you know sled on the back that you get completely tricked out with an almost real santa but you don't have to be that outrageous, but the reality is your talent is limitless, and I want you to take that in. I want you to really think about what I just said, because I've basically just told you that you're amazing in your limit lists and to be able to value yourself properly, you really want to do it based not on you, not on you, but on the transformation that you're delivering and the value that your clients and customers are placing on that you have a conversation with them, they'll tell you how much they think it's worth. They'll tell you either prices or maybe they'll put a dollar amount, never asking for a dollar amount. Just say, what would that be worth to you in the big picture? Because it's, remember, what you're delivering is not a one off, it has a lasting impact, whatever the product or service it is, it has an impact beyond the moment and that's a really important consideration. Yes, for shell, about this I and my jewelry work, I I'm a stone intuitive, and I don't have any idea had a charge for that, someone said recently, why don't you ask for a love donation? You know, I like the idea of a love donation I think it's a little dodgy, I think you're better off giving maybe three tiers of opportunity to people, because love donation, they don't know what that means, and that suggest somehow that this is not an actual, very genuine talent, which it certainly is. So I think that that's something worth looking at and saying for me, too into it, the right stone for you to wear is x amount, or why amount, or is the amount, I guess? Because it's so ethereal, I don't know how to place a monetary value on it doesn't mean it doesn't have a lot of value. It has a theory. It's breast, lou it's, priceless prize, yes, and I don't know how to find we can. We can work on that together when we have our office appointment, okay, yeah, definitely work on that, because it's got a lot of value to it.