The EXACT letter I used to INCREASE customer prices...don't chicken out | Ep 319

What's going on, everybody? I'm bringing some more books, but I wanted to say that, if you haven't checked out Hunter million-dollar offers, I would definitely suggest that you start there. I've gotten some solid feedback and it couldn't be happier with its. Number one ranking on Amazon for direct marketing and over 5,000, five star reviews. So, thank you guys so much for that. It's 164 pages. I really can help you out. It takes about four hours to get through, check it out. On Amazon, the Kindle book is 99 Cents. The audiobook is Lowe's, they'll let me put it on for it, so I think it's 12 bucks. So enjoy that and let's start the podcast. Welcome to the game. Where we talk about how to get more customers, how to make more per customer and how to keep them longer in the many failures and lessons. We have learned along the way. I hope you enjoy and subscribe, what's going on? Everyone? In this video I'm going to show you how to raise your prices in a tactical way on your existing customer. So it's one thing to raise your prices on your customers which for many times, you know, that's what something that you have to do, because you need to do, you want to reinvest in making the business better. You want to cover some Capital expenses or just want to make more money, which is fine in the number one, lever on making money is how what? Your pricing at, right? We've This and thousands of businesses now. And there's a process that we go about this because if you raise it on existing customers, be ready to have people be upset, but here's why this is so important. So let's say that your business runs at a 20% net margin which is fine, right? And let's say that you just for number, say, Q charge $100 a month. If you're running a 20% margin and your $100 a month, a 20% increase in pricing would double your profit, a 50% increase in pricing with three and a half extra profit. That's pretty good. If you doubled your price, you would see XX, how much money you make. And so this is how big of a lever pricing is on how much profit you make. And so knowing how to raise your prices obviously would be something that would be very important. So there is a right way and a wrong way to do it. So what I want to do is show you the right way because the wrong way to do is send an email out saying hey we're raising our prices, you know, Screw you and you'll get a ton of customers who leave you and then you end up being worse off than you were before. But I did this in my facility, this is one of my first businesses, and I actually had a third of my customers cancel, but I tripled my price and so I Able to keep two thirds of my customers at three times the price and lose one, third of my biggest, my employees called it the calling. We got rid of all the problem customers in one Fell Swoop. So, if you have a paint, a bunch of customers are always telling myself, you might want to do this because you'll get rid of all the cancerous people and keep only the people who love you. And when I did that, I doubled my revenue. And here's what's even cooler. My profit went through the roof because I even had to service a third fewer customers which is awesome. All right? And so the way that we do this is through a price increase letter. And if you're curious my gym on speakers, book is a book Book that is about Jim's but it is a business book. That is simply applied to jobs. If you want it, you can grab it is not how I make money, but let's say let's walk through this. So you have your letter to increase prices right now. There's a format to doing this. All right. Now, it's not about you. It's about the prospect is about the consumer, all right? So the first thing that we want to do, right? Is, you know, we don't say, Hey, you probably know that we've been, you know, growing a lot. You probably noticed a lot of the good things that are going on right now. And so that's why I'm writing this letter, all right. So it's like I am I doing this. Why am I writing this letter to you? What's the intention the letter? All right. The second is we're going to talk about what we currently are doing, all right? And so this is allowing you to re resell them a little bit on what you're currently doing. The value are currently providing that because sometimes they forget, because they might only use one aspect your service. And so if they're like, oh wow, there's a lot of extra stuff that I'd even know about and believe me, I can't even tell you, the amount of times people read this letter, they're like, I don't even know you were doing all this stuff, right? And so you want to list out, you know, the stuff that you're doing or say, okay. You know, we hire and retain the best talent. Talent. You know, we have, we offer continuing education for our employees. We, you know, we're providing new software's and equipment to our members that we always try to keep up to date. That's what we're currently doing, though. I didn't you think about that. So the goal here is to is to get them to think about your costs, try and get them into the mind of you as an entrepreneur to the best of your ability, right? Like these are the things that we incur in order to provide this value is not like we're just taking all the money you give us and putting it in our pockets because that's what everyone always thinks. Alright, the next thing, Do is when we say, wow, despite all this stuff that we're doing, we want to do even more because we're losing our minds because we should provide crazy value. All right? And so it's like, we want to let you know, we're currently a ragtag bunch of Champions our facility if you have an actual facility and if you're online, it's like, you know, we've had a lot of stuff that's duct tape together. We want to really, you know, level up the brand and we want to do it for you, right? You want to tell them what's coming. So this is like we want to add these X y&z things. We want to add specialty programs, going at higher levels of service, we want to Add you know events to our to our business. We want to add all these things, right? A massive Improvement to our level of service. These are all things that we want to be adding, right? And then what I like to do is I like to tie this tie this increase to a promise of values. Okay? Now what I mean by that is Real quick guys. If you can think about how you found this podcast, somebody probably tweeted it told you about it. Should it on Instagram or something like that? The only way this grows is through word of mouth and so I don't run ads, I don't do sponsorships, I don't sell anything. I only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast that you do the exact same thing. So if it was a review, if it was a post, if you do that, you mean the world to me and you throw some good karma out there for another entrepreneur. I want to tie this to values that I ascribe to that, no one can contest. So I can say, I have made this promise to you. And with Integrity, I can no longer provide the level of service that I have promised unless we do these things. Because I will not stand here in this Marketplace and say that we are the best at XYZ, unless we do these things. And the only way for me to do these things is for us to have a corresponding increase in price. All right, now mind you when you're communicating the price, it's also important to communicate the Price in a way that's, you know, attractive. So you don't say hey it's going to cost you five thousand dollars extra a year, you would it be better to say? It's going to cost you an extra hundred bucks a week, right? Sounds like a lot less, right? If you can break down even more, it's 15 bucks a day. It depends on, you know who you're talking to what level of service you have, but you can break it down to weekly, or break it down to daily, and that's why insurance quotes people in days. So only a dollar a day, right? So that you can do this in and it will minimize what the perceived cost is. So, ideally, you want to maximize by saying, this is all the stuff we're doing that, we you didn't even No about this is the stuff we want. That's even more than that. And this is how little it's going to cost you and the reason we must do this is so that I can maintain my Integrity to you and the promise that I made you I am forbid. That this is something. I'm planting my flag here is that I demand to be the best in the marketplace and for us to do this. We must continually invest in for us to do that, it's like this is what is required, right? And then and here's what's cool is that I like to add a little PS at the end and that little PS is to give perspective. All right. And what I do here is I say If this is going to materially affect your life, if you're not gonna be able to pay your mortgage or not gonna be able to buy groceries for kids, please reach out to me and we can figure something out. And so by saying that you automatically perspective to everyone, that listen no one's going to go homeless over this thing right now is going to lose their house because we're raising the price of our XYZ, right? Right. But we open the door for discussion for the people who feel obligated or feel the need to do this. Now if you make an announcement like this, which I recommend you doing via video and be a direct mail, you want to make it and then also turn the comments off on whatever. The post is because believe me, you don't want to do with that. As you just say, hey, I don't want this to be, you know, a gossip form. If you have anything, just bring it to me directly out of respect for you. I want to deal with these, you know, face-to-face and not over the keyboard, right? And so it's an easier way to also manage and mitigate any kind of negativity that happens. And believe me, if you raise your prices, you're going to have people going to be squeaky wheels and it's in their best interest to get you to not raise the prices. So just don't chicken out. Once you commit to it, stick with it, all right? Because I'm telling you, if you raise your price like I just sold your over 25 percent margin and you raise your 25%, you double your profit. All right, so I told you I lost a third of my customers. That's because I tripled my price. And most businesses don't realize how much of a pain it is to find another one of your business and so if you can capitalize on that, you can usually eke out an increase in revenue and profit as a result, you will be far out rewarded by making that change and the people who do leave are usually your worst customers and you've been wanting to get rid of them anyways and this gives you a great time to do it. So if you're going to raise your prices, this is the way. That I do it to existing customers. I write a letter. I tell them. You know why? I've said I'm setting the stage for why we're doing this. I tell them all the things that we're currently doing that. They don't know that we're doing and you probably do tons of stuff. It's good to listen stuff out. Then you tell him about the future of what's going to happen, what the benefits are going to be to them, do what they're about to enjoy, and how that's going to impact them in a real way. benefit is going to occur, and then finally, I'd like to end with values and perspective. All right, so probably values are right here, dude. So values is kind of the wrap-up, so just consider that 3.5. Sorry, we both live, right? And then you have your wrap up, which is, Hey, Big Picture. This is going to make you or break you. You're not going to go homeless because of this, but if you do have something that's going to materially affect you because you have that anchor, it makes it very easy for you to have that discussion.