Short conversational excerpt from a YouTube video arguing that businesses should raise price points to improve profitability. The speakers recommend intentionally increasing prices (dropping close rates toward ~30–40%) to lose lower-value clients, focus on higher-end clients, raise profit per customer, and avoid backend operational bottlenecks caused by undercharging.
Like, if your close rate's above 40%, the first thing I typically look at is like, why don't we keep increasing our price points? Why don't we keep increasing those and trying to get that higher and higher and higher to drop your close rate to like 40 or 30%? And his thing was, well, I'm worried I'm going to lose clients. And I said, yes, you will. But that's kind of the point, because.
At the end of the day, we.
Only want to work with people who.
Are higher end clients.
And it's easier.
To scale a business by just simply.
Increasing the price point.
Rather than.
Continuously having, trying to get more people having.
Operations in the back end getting bottlenecked because you're not charging enough, not making enough.
Profit per customer.
