Speaker 1Let's talk about pricing. Get a pen and paper ready because this is going to come thick and fast. First and foremost, how much you charge will determine how much you make. If you price incorrectly, you will go broke. If you price correctly, you will be wealthy. There's no question about that. Secondly, how you price your products or services will also create a degree of perception in the marketplace as to whether or not you are. A commodity like everybody else or whether you are exclusive, high end, premium. Now, the biggest challenge that people have when it comes to pricing is that they don't believe in themselves. They undercharge and lo and behold, they don't make an awful lot of money and they end up broke. The problem with that is, is that you attract the bottom barrel of the market. You usually have the highest level of problems and the highest level of expectations. Write this down. Low level people require high level help. Right. Understand that low level people require high level help. On the other hand, higher level people usually come with batteries included. That means that they come with intentions, a degree of success already, and just the willingness to solve a problem super fast. The lower end buyer has a ton of limiting restrictions. The lower end buyer has a ton of beliefs and essentially just needs a lot of convincing, especially when it comes to coaching and selling any form of consulting or advice or expertise that requires somebody to make massive shifts in their life to do something. Now, I want to go into a series of principles here that are very important to understand when it comes to pricing, along with some key action steps for you. The first thing is to understand that your price will be laughably cheap for the rest of your life. The second thing is to understand that your price will be laughably cheap for the rest of your life. The third thing is to understand that your price will be laughably cheap for the rest of your life. The fourth thing is to understand that your price will be laughably cheap for the rest of your life. And it will be borderline, if not offensive, to the wrong people. Please keep this in mind, that if you are scared of charging higher fees, then there is a very good chance that one, you need to look at your limiting beliefs around money. Why do I feel like I'm not worth this money or why do I feel like my service is not worth this? And I'm going to solve that in point two here. But is there a point to be made that you're worried about the opinion of the wrong people? Is there a point to be made that you're worried about the opinion of the wrong people? So quite often a lot of us under charge because we're worried about how we may be perceived by people that we're never going to buy from us. We're maybe perplexed by the competition talking shit about us. We're maybe annoyed about a client that came to us at a point in time in the business when we weren't at a level where we needed to be and them potentially ridiculing us. The truth is this. Your price will be laughably cheap for the right people and expensive for the wrong people. So it's important that when you pick a price, match it to your product or service, that you then co-align, write that word down, co-align pricing with the market message that you put out. What you're looking for is market message fit. How do you know? You've got market message fit. People turn up with no objections. Sale cycle shortened. The speed at which it takes a lead to become a sale. When you don't have market message fit, here's what happens. You end up with a ton of wrong ones in your fucking DMs. Wasting time. Hey, how much is it before I even grab a call? Why should I trust you? Have you worked with anybody like me before? Like all of this kind of like mundane. Prove to me that you're worth it. Don't get me wrong. There's nothing wrong with doing due diligence, but a lower level buyer will not believe in themselves enough where they will want to create a narrative and story to essentially hold them back from pulling the trigger on purchasing because it puts them at risk. Okay. Your best buyers will have a problem, want to solve it fast, and essentially just want to get on with their life. So your market message fit is absolutely paramount. That means you match the language that you use in your social media, your advertising campaigns, your literature, anything that has text on it. It needs to match that of your buyer. So what is the underlying intentions? What are the nightmares? What are the goals? What are the dreams? What are the aspirations of your market? What are the specific language terms, patterns that they use, and what are the language patterns that they don't use on top of that as well? How can you essentially repel the wrong people? So if you have been following me on social media or you listen to this podcast, you'll know that I don't like working with low agency people. I don't like working with simps. Okay. What is, what is defined as a low agency simp? Well, it's very simple. One, they don't take risks. Two, they don't implement. Three, they're always looking for somebody to blame or something outside of them to blame rather than actually looking at themselves. Four, they've got no edge. An edge is very important. Let me just elaborate very quickly what edge is. Edge is almost like a, like a little chip on the shoulder at life, at whatever it may be in your world. Like family or like you're, you're pissed off at the industry and you want to do something about it. Like the best clients that I have have got edge. Like they're, they're really fucked off with something and they channel that aggression and that anger into their business, into essentially serving their clients because they've got a point to prove. So, you know, when I built Fitness Entrepreneur to, you know, two months ago. It was like a million plus net profit a year, abnormal result. I was fucked off because so many people made fun of personal trainers as like being a broke, like dropout career. Like I got laughed at. My parents laughed at me. My fucking university teachers laughed at me. Everybody laughed at me because like I went to be a PT and I was fucking furious because I was like, well, let me just show you, right? And the same also applies in this new vehicle that I'm in. Where I'm helping industry experts, coaches, consultants, and the majority of people that own a large business, like a typical, a typical, like, um, bricks and mortar based business with a large team building a big business for like a seal or an acquisition. They're like, oh, that's not a real business. That's an internet business. It's a business that makes insane amounts of net profit with insane amounts of freedom and flexibility and ultimately provides a way better life. Way faster than anything that is typical run of the mill. So you have to have a little bit of edge. Okay. You want clients with edge. You want clients that have got a point to prove they're going to be the best. All right. The second big insight here is that you always price based off the cost of the problem, right? So when somebody comes to you and says, how much do you charge? The first thing that you need to do is diagnose what the actual problem is. And figure out what the cost of that is. And then basically price according to that. So if I use a prime example, I have a lot of people that reach out to me for, uh, private mentoring, uh, consulting days, come and train our teams. I'm training one of the top financial advisors in the country, their entire sales team. And it's like a 50 K plus, uh, consulting deal. And if I take their conversion. Like up like 2%, like, like 2% over the course of time that I'm working with them. And that's like only like three months, like 2%. The, the lifetime value that they will get from the bump in 2% of conversions is like millions and millions and millions. So it's very easy for me to go in and go, well, if I guarantee this and here's how I do it. And I create this bump. create this bump here's what i'm going to charge no problem at all phil bam so if you're currently Here's what I'm going to do. I'm going to do this. contemplating on how do i price this or how do i price my new offer or whatever it is what is the cost of the problem that you're solving and what is an absolute no-brainer price that you can put on that and essentially whenever you lead with that you're far more effective rather than trying to just sell it based on what somebody thinks is the right price. That's the wrong way to think about it. Quite often we make the mistake of setting a price point just to feel like we're not greedy or just to feel like we've met the customer where they're at based on the problem that you're solving, right? And problems exist in numerous different ways. They can come at a cost of money. They can come at a cost of time. They can come at a cost of wasted energy. They can come at a cost of wasted relationships. And ultimately, it's opportunity cost. the third thing is that you need to raise prices continuously now you raise prices continuously based on one core metric and that is the cost to fulfill so if your taxes have gone up if your labor has gone up or anything like that like you need to price increase because like a million a year now today in 2026 is not the equivalent to a million in 2021 and you need to understand that you need to be increasing your pricing regularly particularly with inflation particularly with the cost of the materials the electric the the travel all all the expenses that go into delivering your service but you also need to raise prices in accordance to the level and speed of results that you get for your customers so if you're continually getting five stars or massive client transformations that's enough evidence for you to again reframe against the cost of the problem that you're solving and you regularly need to increase that now there's one overarching piece that i always like to measure and look at and it's the sales conversion we want to get into what i call the goldilocks zone of sales conversion where you are priced appropriately enough where people know it's a stretch but they know it's good value and you want to be converting at around about 55 percent to 50 percent generally is what i like to aim for and the reason why i like to aim for that is because if we were converting at like 80 90 percent well there's a very good indication that we're actually too cheap too many people are saying yes and even if we were to drop that conversion down to like 60 or 55 percent we'd be making the same amount of money with less fulfillment so it's always a balance between the energy and effort and time and resource and capital that it is to fulfill something that it is to just charge a premium and work with less but higher quality people so that's always the battle and you got to know what that looks like so you know i remember way back whenever i was doing my early days of coaching and consulting and i was converting at like 70 80 plus percent and i just doubled my prices and my conversion went down to like you know 60 55 so it only it only dropped 10 to 15 percent but the quality of client went through the roof and i was making way more money with less work so you have to evaluate that and also as well the perception of pricing like i always wanted people in the marketplace to know that i was the most expensive the most in demand and ultimately that attracted the highest level buyer so understand that your pricing needs to increase periodically as your costs increase as your results get better as you continue to invest in your business add new labor add new training add new investments whatever it is new equipment you need to increase the pricing so if you haven't increased your price in the last 12 months it's maybe a good time to sit down and go what have the results been like that we've got clients over the last six months who's been the biggest winners what have we invested into the business in terms of skill acquisition equipment tools infrastructure software whatever it is and does it justify a price increase and if you find that your conversion is going down one of the most important tactical pieces this is super tactical is to actually go to the individual that's selling whether it's you or whether it's a closer and actually go has this in any way negatively influenced your belief when it comes to selling because it is absolutely imperative that if you do put pricing up and selling for you that you also raise their belief in their selling because one of the worst ways to off a sales team is to go guys we're increasing the price point and then they begin to panic because they're limiting beliefs around money kick in and ultimately that's then felt on the other end so anytime that you put a price up you have to justify it with the individual that's selling we're putting our price up because one our results are the best in the market two we've just invested this in education and you know coaching or we've just bought this piece of equipment or we're just about 420 grand in ads and we actually need this to be able to help more clients but you always want to bring in something around the results piece customer satisfaction reviews whatever it may be in order to rebuild that belief because anytime you put a price increase into a offer there's the risk of people might say no so you have to factor that in but remember the golden rule you cannot be the cheapest and you cannot be the best so three little nuggets for you one your price point is going to be offensive and too dear and too expensive for the wrong people it's going to be laughably cheap for the right people make sure that you've got a market message fit language style matches what the higher level of market actually wants number two is to make sure that you price based on the cost of the problem and you don't just price based on what your limiting beliefs think that you should be pricing and three is that you regularly increase your prices in correlation to the cost to fulfill the service and you also factor in results investments into the business that ultimately then are balanced out by a price increase which ultimately then protects your net profit anyway i'm on a mission this year to help 10 industry experts hit a million net profit in their business if you'd like to be one of them shoot me a message on instagram let me know you've listened to this podcast and fill me in about the business where it's at where you want to take it and i'll point you in the right direction rock and roll hope you find this useful peace out
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