Cameron HeroldFounder of the COO Alliance & Invest In Your Leaders Training

The 40% Trick: Raising Prices Can Save Your Business

18 Oct 2024 · 1 min

Watch on YouTube

0:41

A short YouTube talk by Cameron Herold arguing that business owners should delegate tasks that fall below their effective hourly rate and substantially raise prices. He gives a concrete example from his time at 1-800-GOT-JUNK where he raised a full-truck price from $338 to $478 (a 40% increase), which enabled hiring, greater delegation, and repositioning the brand.

Chapters

So you want to delegate everything off your plate that is below your effective hourly rate. That's number one. Number two, you want to raise your prices. Every single person out there is probably charging too little. When I came into 1-800-got-JUNK, and I rarely talk about this. One of the very first things I did in the first two weeks that I was there is I raised our prices by 40%. Wine was charging $338 for a full truck. I raised our price to 478 in the first two weeks. Everybody in this company thought we were going to go bankrupt when we raised our prices. I'm like, we're going bankrupt now. We raised our prices and became kind of the Starbucks or the FedEx of junk removal. That allowed us to have more money, to hire more people, to delegate everything except genius.