hair going welcome to a quick tgim
mastermind video usually do this on a
Monday that’s the tgim but yesterday 50
cent dropped one of my videos and said
that he really liked them and he shared
my video on his Facebook page in his
Twitter page and my day just kind of
super exploded on me had a massive
headache by the end of it and said you
know what I want to make this video when
I am feeling good on top of my game so
question came in for one of my online
mastermind members Mike who has a
service-based business and he’s feeling
like he’s underpricing himself the other
shops around him his competitors are
charging at least thirty percent more he
wants to raise his price event is
concerned about losing his clients he’s
wondering how to how does it do it how
do you raise your prices so a couple
couple things that come to mind yeah I
was an entrepreneur you never want to be
the lowest cost provider because
somebody could always do it cheaper
right somebody can always find somebody
else to do it cheaper than you at the
start that’s okay you know you’re
building up your experience your
credibility you’re getting the roster of
clients you’re getting some
word-of-mouth happening for you but at
the end of the day you want to think in
business you make money by providing
value you make more money by providing
more value and if you’re providing a lot
of value you don’t want to be at that
that low-cost provider you always want
to think how can i add more value to the
relationship so I in charge money it’s
not bad when you’re doing it yourself if
you charge a lower price because you
have low low overhead you have low cost
it’s just you but if you were building a
team and you want to continue to build
that team if you are the low-cost
provider it’s really hard to pay your
team and then still make more a little
bit yourself to be able to take home
it’s really hard when you’re the lowest
cost provider so again always be
thinking about providing value and not
cost that means said how do you go about
increasing your prices one I like to
think of it as since your service based
business your supplies limit right
supplies your time your personal time
the time of the people on your team your
supply is limited if you’re providing a
ton of value at a really good price
you’re going to get lots of people
coming right you should if you’re not
getting people coming people are talking
about you repeat business
for business if that’s not happening
you’re not doing a good enough job over
delivering for your clients right so you
have to make sure people understand what
you say in for right your one word that
you’re applying one word that you’re
living your one word that people
understand the difference that you
provide versus going somewhere else you
have to make that clear all your
marketing and every conversation you
have with them and if that’s working and
you’re at a low price you’re going to
get tons of people coming right you
should feel like I don’t have enough
time to handle all these clients right
if you’re not then you got to increase
to buy you and increase the over
delivering for them and increase the
marketing to help them understand why
and how you’re different because if I
can’t tell why you’re different than the
next guy then I’m only going to compare
on price right if I think you’re the
exact same was the guy next to you I’m
going to go to where the cheapest price
where if I understand the difference
between you and the next guy then price
is still a factor but it’s not the only
factor right then then then I’m
calculating a lot more things in my head
than just who’s going to give me the
cheapest price right and so that’s on
you to figure out how are you going to
market yourself and make sure people
understand how you’re different and that
means you’ll lose some customers that’s
great but they’re not the ideal clients
so your supplies limited you should be
attracting clients who love what you do
who keep coming back or referring
clients to you and your supply is
shrinking like I have no more time in
the day and I have too many customers at
this low price you can start increasing
your pricing second thing to think about
is what I talked about with ideal
clients you want to have clients in this
for any business when you’re first
starting up to up this work with anybody
right like I need money I need to
survive I gotta pay my bills and you
take on a lot of non ideal clients and
they these are the guys to give you the
headaches they hassle with you there you
know they could be rude to you you know
they create a lot of the pains and
problems in your business eighty percent
of the problems come from twenty percent
your customers definitely at least and
so you can’t be focused on keeping every
single customer it can be very
liberating and an amazing experience for
your business to actually fire some
clients and for the wrong clients and I
real clients for you to go somewhere
else like that’s good for you that’s
good for business because when you’re
working with ideal clients who
understand the value that you’re
providing again you’re making sure you
do a good job explaining it and they
understand it they can make an educated
decision whether to go with you or
somebody else based on what you’re
promising value when you start work with
those clients man life gets a lot better
you’re charging more you’re getting more
referrals you’re happy there’s less
issues with the customers they’re happy
they’re spreading more word-of-mouth
about you you want to identify who are
the target clients that you’re working
with not just in terms of the the size
of business and the types of projects
that they have for you but also the
their values right coming back to your
one word like they’ll clients who
appreciate that they understand that
they like it they love that about you so
you want to be able to target those
ideal clients and don’t worry so much
about losing the other guys because the
ideal clients will be your gold mine for
your company and then three if you’re
worried about increasing prices and
people giving you feedback and they’re
upset about it what you can easily do as
a grandfather people in and slowly
adjust it you can say you can tell
everybody hey our new rates have gone up
we’re now the same the same race as
everybody else the same competitive
rates but we’re still gonna provide the
amazing value that we stand for that you
come to us for and for you guys for the
next six months we’re going to give you
your old rate and then after that six
months are going to go back to the full
price and I would do on the invoices for
those guys I would show them that here’s
what the full rate should be but you get
a discount being a preferred loyal
customer or whatever and then after the
end of that time period cream on six
months however long you want to do it
you increase the price in them so
they’re they’re not shocked they’re not
coming in and like super sticker shock
right away it gives them time to make
the decision and also gives you time to
see is this person you know an ideal
client for me is this somebody who I
want to continue working with or not
right again if they leave you because
your price has gone up too much then
it’s probably not an ideal client that
being said I’ve always found that I have
soft spot for some clients and I think a
lot of entrepreneurs do have a soft spot
for some clients there are some clients
who you fall in love with their story
you fall in love with them they’re great
clients in terms of dealing with you and
appreciating the work that you’re doing
and and I’ve given some discounts and
done a lot of work for free for people
who just couldn’t afford it and that may
be something that you want to build in
as well you have some clients that you
know they can’t afford you know they’re
not a big business you still want to
support them and you have a certain
percentage of your clients that you keep
at a lower price and they have you have
an understanding like because because
they’re small because like let them know
that there’s a reason why they’re
getting a better price but don’t let
that be your whole business that’s like
ten percent your clients kind of thing
right in terms of dollars not in terms
of your client base because it’s great
to do charity and and it’s kind of
charity and I love giving back and being
part of the community at the same time
you have to be around right it’s great
to want to give back and help and the
way to do that is to be able to build a
bigger business build a solid business
because you could volunteer all day long
and be out of business in three months
and that’s not going to help your
community at a bigger scale that’s not
going to help you and so focus on
building your business focus on getting
ideal clients and having a good price
even increase in prices maybe I would
want to increase my prices ahead of my
competition you’re under so at least
matching them and then if there’s some
clients that you really want to keep
when you really have a soft spot for as
long as it’s under that ten percent of
your revenue I think it’s okay to have
some that you help them get back to and
you know the concert really make you
feel good any other discussion ah that’s
it TT IM thanks to the question and let
me know what you guys think below in the
comments bully
mastermind video usually do this on a
Monday that’s the tgim but yesterday 50
cent dropped one of my videos and said
that he really liked them and he shared
my video on his Facebook page in his
Twitter page and my day just kind of
super exploded on me had a massive
headache by the end of it and said you
know what I want to make this video when
I am feeling good on top of my game so
question came in for one of my online
mastermind members Mike who has a
service-based business and he’s feeling
like he’s underpricing himself the other
shops around him his competitors are
charging at least thirty percent more he
wants to raise his price event is
concerned about losing his clients he’s
wondering how to how does it do it how
do you raise your prices so a couple
couple things that come to mind yeah I
was an entrepreneur you never want to be
the lowest cost provider because
somebody could always do it cheaper
right somebody can always find somebody
else to do it cheaper than you at the
start that’s okay you know you’re
building up your experience your
credibility you’re getting the roster of
clients you’re getting some
word-of-mouth happening for you but at
the end of the day you want to think in
business you make money by providing
value you make more money by providing
more value and if you’re providing a lot
of value you don’t want to be at that
that low-cost provider you always want
to think how can i add more value to the
relationship so I in charge money it’s
not bad when you’re doing it yourself if
you charge a lower price because you
have low low overhead you have low cost
it’s just you but if you were building a
team and you want to continue to build
that team if you are the low-cost
provider it’s really hard to pay your
team and then still make more a little
bit yourself to be able to take home
it’s really hard when you’re the lowest
cost provider so again always be
thinking about providing value and not
cost that means said how do you go about
increasing your prices one I like to
think of it as since your service based
business your supplies limit right
supplies your time your personal time
the time of the people on your team your
supply is limited if you’re providing a
ton of value at a really good price
you’re going to get lots of people
coming right you should if you’re not
getting people coming people are talking
about you repeat business
for business if that’s not happening
you’re not doing a good enough job over
delivering for your clients right so you
have to make sure people understand what
you say in for right your one word that
you’re applying one word that you’re
living your one word that people
understand the difference that you
provide versus going somewhere else you
have to make that clear all your
marketing and every conversation you
have with them and if that’s working and
you’re at a low price you’re going to
get tons of people coming right you
should feel like I don’t have enough
time to handle all these clients right
if you’re not then you got to increase
to buy you and increase the over
delivering for them and increase the
marketing to help them understand why
and how you’re different because if I
can’t tell why you’re different than the
next guy then I’m only going to compare
on price right if I think you’re the
exact same was the guy next to you I’m
going to go to where the cheapest price
where if I understand the difference
between you and the next guy then price
is still a factor but it’s not the only
factor right then then then I’m
calculating a lot more things in my head
than just who’s going to give me the
cheapest price right and so that’s on
you to figure out how are you going to
market yourself and make sure people
understand how you’re different and that
means you’ll lose some customers that’s
great but they’re not the ideal clients
so your supplies limited you should be
attracting clients who love what you do
who keep coming back or referring
clients to you and your supply is
shrinking like I have no more time in
the day and I have too many customers at
this low price you can start increasing
your pricing second thing to think about
is what I talked about with ideal
clients you want to have clients in this
for any business when you’re first
starting up to up this work with anybody
right like I need money I need to
survive I gotta pay my bills and you
take on a lot of non ideal clients and
they these are the guys to give you the
headaches they hassle with you there you
know they could be rude to you you know
they create a lot of the pains and
problems in your business eighty percent
of the problems come from twenty percent
your customers definitely at least and
so you can’t be focused on keeping every
single customer it can be very
liberating and an amazing experience for
your business to actually fire some
clients and for the wrong clients and I
real clients for you to go somewhere
else like that’s good for you that’s
good for business because when you’re
working with ideal clients who
understand the value that you’re
providing again you’re making sure you
do a good job explaining it and they
understand it they can make an educated
decision whether to go with you or
somebody else based on what you’re
promising value when you start work with
those clients man life gets a lot better
you’re charging more you’re getting more
referrals you’re happy there’s less
issues with the customers they’re happy
they’re spreading more word-of-mouth
about you you want to identify who are
the target clients that you’re working
with not just in terms of the the size
of business and the types of projects
that they have for you but also the
their values right coming back to your
one word like they’ll clients who
appreciate that they understand that
they like it they love that about you so
you want to be able to target those
ideal clients and don’t worry so much
about losing the other guys because the
ideal clients will be your gold mine for
your company and then three if you’re
worried about increasing prices and
people giving you feedback and they’re
upset about it what you can easily do as
a grandfather people in and slowly
adjust it you can say you can tell
everybody hey our new rates have gone up
we’re now the same the same race as
everybody else the same competitive
rates but we’re still gonna provide the
amazing value that we stand for that you
come to us for and for you guys for the
next six months we’re going to give you
your old rate and then after that six
months are going to go back to the full
price and I would do on the invoices for
those guys I would show them that here’s
what the full rate should be but you get
a discount being a preferred loyal
customer or whatever and then after the
end of that time period cream on six
months however long you want to do it
you increase the price in them so
they’re they’re not shocked they’re not
coming in and like super sticker shock
right away it gives them time to make
the decision and also gives you time to
see is this person you know an ideal
client for me is this somebody who I
want to continue working with or not
right again if they leave you because
your price has gone up too much then
it’s probably not an ideal client that
being said I’ve always found that I have
soft spot for some clients and I think a
lot of entrepreneurs do have a soft spot
for some clients there are some clients
who you fall in love with their story
you fall in love with them they’re great
clients in terms of dealing with you and
appreciating the work that you’re doing
and and I’ve given some discounts and
done a lot of work for free for people
who just couldn’t afford it and that may
be something that you want to build in
as well you have some clients that you
know they can’t afford you know they’re
not a big business you still want to
support them and you have a certain
percentage of your clients that you keep
at a lower price and they have you have
an understanding like because because
they’re small because like let them know
that there’s a reason why they’re
getting a better price but don’t let
that be your whole business that’s like
ten percent your clients kind of thing
right in terms of dollars not in terms
of your client base because it’s great
to do charity and and it’s kind of
charity and I love giving back and being
part of the community at the same time
you have to be around right it’s great
to want to give back and help and the
way to do that is to be able to build a
bigger business build a solid business
because you could volunteer all day long
and be out of business in three months
and that’s not going to help your
community at a bigger scale that’s not
going to help you and so focus on
building your business focus on getting
ideal clients and having a good price
even increase in prices maybe I would
want to increase my prices ahead of my
competition you’re under so at least
matching them and then if there’s some
clients that you really want to keep
when you really have a soft spot for as
long as it’s under that ten percent of
your revenue I think it’s okay to have
some that you help them get back to and
you know the concert really make you
feel good any other discussion ah that’s
it TT IM thanks to the question and let
me know what you guys think below in the
comments bully
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