How To Get More Clients By Increasing Your Price

[TRANSCRIPT]

0:00:03 - (Jared Erni): This is the For Impact podcast, the destination for impact driven entrepreneurs striving to live life on their terms and create a ripple effect of positive impact in the communities they serve. Where we put your success stories, center stage, dissecting the lessons learned, and sharing insights and ideas that will help you amplify your impact. And now, here's your host, Jared Ernie.

0:00:38 - (B): 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. Let me tell you a little backstory on this. Earlier this week, I was working with a client who is in the HVAC space, and he's doing a lot of service calls, but he kept telling me, I feel like I'm undercutting myself with the way I'm pricing our service calls.

0:01:04 - (B): And the reason I asked him, well, why do you feel that way? And he said, Well, I'm worried that people don't have the money and they're going to say, no, I'm going to lose business if I don't reduce my prices because of the competition that's out there. And I said, well, don't you think, though, that there's enough people who will pay you more to do what you need to do? And he said, yeah, absolutely. I said, well, why do you feel like you're charging too little? And he said, well, there's other people out there charging X amount for this or two times the amount for this. I said, well, here's what I want you to do.

0:01:40 - (B): So if you know others are charging more but you're charging less because you're afraid you're going to lose the client from doing that, I just want to give you a challenge. I want you to add I will just do a little step, but I want you to add an extra $100 to your next service call when you price it out and just go with it. Add an extra $100 and see what happens. And when we got back on the phone with him, he said, man, the next service call I did, you told me to add $100, but actually I added $250 to my next service call, and they said yes.

0:02:17 - (B): And then after that, they actually bought even more from me with the next thing, and I couldn't even believe it. I made like an extra $800 that I wouldn't have otherwise because I did what you told me to. And I was so grateful to have him share that back with me because this is a concept that I've learned over the years. When you want to increase your perceived value, you increase your price. That will be an indicator to people that what you charge has greater value in it than what the others do. Now, here's three things about increasing your price and how you can create more perceived value.

0:02:54 - (B): So number one, that one step actually just what I was saying, that one step will increase the perceived value that people see in your service, but it's also going to help your business so much more because there's two ways to compete. You can either compete with price, or you can compete with value. But if you're always undercutting yourself, like my client was always cutting down your margin, it's a very difficult way to grow a business.

0:03:19 - (B): It gets harder to scale. It gets harder. And what you're doing is you're chasing business. You're conditioning people to view you by price and not view you for the value offer. So step one, just add $100, right? It doesn't need to be that, right? It could be whatever it is that you're doing, but incrementally step it up and charge more. That's going to help establish a baseline of there's more value here. Number two, this is how you support a price increase.

0:03:52 - (B): What people care about more than price is getting convenience, quality, and value. And when we try to sell our service and we try to sell it based on price, we're eliminating all those other things that actually mean more. What you want to do is sell the transformation, not the service. Sell how they're going to feel because of what you're doing for them, not sell the service. Does that make sense?

0:04:23 - (B): We're actually selling a result, not the thing that's getting them that result. That's the idea here. And when you do this, you're going to increase the way they perceive the convenience, quality, and value over price. And when you create more value than what they think the price is for, that they will buy every single time. So look at what you're doing, whatever service or product you have, and look at, how can I shift this away from here with my client?

0:04:57 - (B): This HVAC service call. People don't want to buy a service call. They're doing it because they have a problem. So don't focus on, hey, we'll come out for $89, or whatever that service call is, right? Don't focus on selling the service calls. Focus on, hey, we're going to come by, we're going to fix this quick. So you get comfortable again, right? We're going to make you comfortable again because your HPC is down. It's hot, it's muggy.

0:05:21 - (B): You're going to have a reliable technician, professional technician, take care of it. Make sure you're comfortable that you get this fixed fast. That's selling the transformation. That not focused on the service call. Does it make sense? So I hope that hopefully that helps. Number three is there's two ways to compete? I think I kind of touched on this. There's two ways to compete. You can compete with price, or you can compete with value.

0:05:44 - (B): Competing with price is the way most people do it. It's conditioning people to view you as a commodity. And when you are viewed as a commodity, the only way to win is to be the one that charges the least. And guess what? There's always someone who's going to undercut you and be the one charging the least. But that's a race to the bottom. If you want to grow a healthy business, you need to find out how do I separate myself from the competition? How do I get away from being a commodity and actually compete with high value?

0:06:11 - (B): If you can be the one that your market sees as creating high value, you're always going to be able to charge more or even the most. But you're also going to win a lot more business and a lot higher quality type of client. There will always be the price shoppers out there, the people who only want to buy if they get a deal. Don't worry. 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.

0:06:45 - (B): If you focus on value and selling the transformation, I hope that helps. But that is why step one increase your price and you will increase your perceived value.

0:06:56 - (Jared Erni): Thank you for tuning into the For Impact podcast, where we're all about driving positive change through entrepreneurship. Remember, your impact matters and your journey matters. If you found inspiration in today's episode, please subscribe rate and leave a review. Your feedback fuels our mission to empower impact driven entrepreneurs like you. You can stay connected with us on social media and go to Forimpactpodcast.com

0:07:28 - (Jared Erni): to take our impact packed marketing challenge. Keep pursuing your dreams, making an impact, and living life on your terms.