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How To Get More Clients By Increasing Your Price
Manage episode 387054548 series 3524099
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About The Guest(s):
The guest in this episode is Jared Erni, the host of the For Impact podcast. He is an impact-driven entrepreneur who helps others create positive change in their communities. Through his podcast, he shares success stories, insights, and ideas to help entrepreneurs amplify their impact and live life on their own terms.
Summary:
Jared Erni discusses the importance of increasing perceived value by increasing prices. He shares a story about a client in the HVAC space who was undercutting himself by charging too little for his service calls. Jared challenged the client to add an extra $100 to his next service call, and the client ended up adding $250. The client was surprised to find that the customer not only accepted the higher price but also bought additional services, resulting in an extra $800 in revenue.
Jared explains that increasing prices can increase perceived value and help businesses grow. He emphasizes the importance of competing with value rather than price, as competing on price can lead to a race to the bottom. By focusing on convenience, quality, and value, businesses can sell the transformation and create more value than what customers expect for the price. This approach attracts higher-quality clients who are willing to pay more for the best.
Key Takeaways:
- Increasing prices can increase perceived value and help businesses grow.
- Compete with value, not price, to avoid being viewed as a commodity.
- Sell the transformation and focus on convenience, quality, and value to create more value than what customers expect for the price.
Quotes:
- "If you want to increase your value in the way that clients and customers perceive your value, then here's an easy way to almost do that instantly: increase your price."
- "When you want to increase your perceived value, you increase your price."
- "Sell the transformation, not the service."
- "Competing with price is conditioning people to view you as a commodity."
- "Let the commodity competition get all those clients. You can win the clients who want the best and who will pay more to have the best."
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