Small Business - Maximizing Leverage - Colin Sprake from MYMSuccess.com

Let's look at this word capitulation. What does capitulation mean? To give up, to give in. So capitulation happens with some business owners in certain areas of their businesses. When does capitulation happen? Most frequently when you want to close a sale. So why does capitulation happen? Why do we drop our prices? So desperation. What else? So lack of confidence, which actually comes due. Lack of value. What else? Put the favored one in here. What else? And also maybe you could have judgment. Okay, cool. Distraction, distraction, Distraction as well. So in what sense, Harry? You'll focus on your goal and. Because if something happens in between. Okay, so I mean, that'll come down to maybe it might fall into lack of value. Yeah. Or in judge as well. Okay, so here's the thing. So these are the key areas, why people drop their price. How many of you ever dropped a price of a product or service? Okay, unless it's an outrageous offer. Because opposite of this is an outrageous offer, but this is a preset outrageous offer. Preset. The biggest part of that entire word. Because here's the thing. When you're going to see a client and you sit down with them and they say, richard. So, Richard, a product, business or service, you sell for time or do you sell a product? Both. Both. Okay, so if you sit down with a client and so what's the hourly rate for a service? 90 bucks. Okay, so if a client sits down with you and you go, what's 90 bucks? I sell for 90 bucks an hour. I go 90 bucks. I know someone down the street for 70. What would you say? Okay, what are you getting for $70 from the other guy? There we go. First, clarify that you're actually comparing apples with apples before you throw the sale away. Because for 70 bucks, they might be getting half the amount of service that you'll be giving for 90 bucks. And then suddenly realize it. That's really important. So thank you for helping Richard on that. I mean, that's just a small little epiphany that people don't get this. Oh, 70 bucks. But the key thing, though, is if it was apples, with apples, most people. Some people would drop their price to get the sale. Because remember one thing. Desperation. Desperation to me is often really, simply put, the order is bigger than the dollars that you have in your bank account. That's what causes desperation. You know, the dollars might be $500 and your bank account has $50 in it. You're like, even if I get 300, I'd be happy. We downgrade our pricing. And this is One of the most important parts of this entire section is understanding your value until you understand the value. So what Richard was saying was true. It's like, well, go down the street then for 70 bucks. I know what my value is for 90. If you want to buy from me, I'm 90 bucks. I did for consulting, you know, I did not. Consulting roles. There's certain consulting contracts that I do, different roles and. But for one on one consulting with clients between 250 and 350 an hour depending on my preset offers. Why? Because that's what I'm happy getting. People go, wow, why would I pay that? Well, do you want results? You know, one company already this year will do what they did the whole of last year, which is not just $50,000. It's a couple of hundred, if not more thousand dollars in the first three months compared to what they did in the whole of last year. Oh, the economy changed, Colin. No, it hasn't. You see how the human brain starts to click and say it's impossible. You cannot do that for somebody. That is very possible. You can do it for any business. In fact, I got one of my good clients in the room tonight. So I have to be careful what I say or she'll hold me to it. Hey, Linda. So it's really cool, but it's really getting people to the next level that's important. So what happens is if you, if I drop my price, that's capitulation. But here's the preset offers are the following. I go in and someone says, I'm going to buy 10 hours from you. I would like 10 hours of consulting. Okay, that's $300. I want one hour. 350. In fact, I want 50 hours. Okay, I'll go to 250. That's preset. So I got another client down the road. I want 50 hours. 250. Those are preset offers. Most of us don't have preset offers. We have make them up on the fly offers. And then we get our clients in the same room together. And what do the clients talk about? Prices. And then when they say to each other, how did you get that? I didn't get that. Then you order can of worms that you have to sort out really, really important. So preset, this is the most important word in this slide is preset offers. So capitulation happens when you have lack of value. And this is what we train. We spend over 25% of a course called Sales Warrior, which is our second course up there, training People on value. People say, I know my value. I go, not until you've been through Sales Warrior. You won't know your value in detail until you go through a training where you really get it. Because getting your value is very important. In fact, I sometimes meet outside of ourselves while we're training with some of our students to help them get it, because they still don't get it after half a day. Because sometimes understanding value, when you understand value, you will never capitulate. Never in any situation, ever, ever, ever capitulate. The key thing is understanding value, the most important thing. So when you leave here this evening, all I can ask you to do, number one, is come join us at Sales Warrior. But most of all, have preset offers for things in your business that are consistent for everyone and double for family. I really joke about that, but I would, because how many people give really great rates to their family? And they go, I wish I hadn't done that. I do it with my own clients. One of the things I do with my clients that I work with, I always say to my clients, I will give you. I will sell you courses at a fair price. You give me your product at a fair price. Because I buy from our students, I don't expect to get it for free at a ridiculously reduced price. Why? Because I want them to build their businesses. If I go out and abuse them and get them to give me their product for free or at a really ridiculous price, I'm not helping them. And that's what people don't get. When you have an opportunity to assist others, make sure you're assisting them, but make sure you assist in all aspects. You're giving the same offer to everybody. If they buy a bigger volume, they might get a bigger discount. Whatever, it might be great. But that offer should be consistent across the board. No favoritism. Yes. Yeah, absolutely. It's a whole. Sorry, I didn't get the first name. Tracey. So, Tracey, when it comes to referrals, we have a whole referral program that we put into place, so we train it at Sales Warrior. We spend a chunk of time just getting a referral program in place because you have to say thank you to your clients for referrals. Some people, it's more difficult if you're an accountant. It's very difficult to give money for referrals because of the associations what have you. There's different laws around different associations. Doctors and dentists have similar things as well. But there's always ways around it. There's always ways to say thank you for referrals. And you have to create a program that's consistent for. For everyone. Really important, Tracy. So thank you for that question. But it is consistent. You don't necessarily have to give money. I'm a big fan of giving money. Because you give money, they can decide what they want to do with it. If you give something that's self feeding that, you know, you say, I'm going to give you a voucher to my business for bringing, I'll give you business, you bring me business, but I'll give you a voucher to come back and get more business from me. That's very self perpetuating. I'm a big fan of give them money. Let them decide if they want to use that money to come back and buy from you. Fantastic. It just tells you doing a good job.