In this coaching‑style video, Eric Deeran explains why video‑agency owners should not fear raising their prices. He frames the issue as a price‑volume dichotomy: selling a low‑ticket item requires few sales calls, while a high‑ticket package needs many calls to close a single client, but sales will still occur. He shows how a higher price typically lowers the close rate (e.g., from 60% at $10k to 30% at $20k) yet can keep total revenue steady because each sale is larger, and profit rises because fewer clients mean lower fulfillment costs. Deeran illustrates the concept with a real client, GM Media, which sells $40‑50k annual packages at a 65‑70% close rate. He advises incrementally raising their price to $60‑70k to align with limited fulfillment capacity, thereby preserving profitability. The core takeaway is that owners need a reliable lead‑generation system to handle the increased call volume, and that raising prices can actually improve profit margins while maintaining revenue.
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I wanted to record a quick video because something we talked about on my coaching call today was raising prices as a video agency owner. And one of the things I think trips a lot of people up is that they get scared to raise their prices because they think that nobody will buy. Right. And the truth is, is it is more of a dichotomy of like, someone will always buy. It just depends on how many sales calls you have to take to get somebody to buy. Right. So like, If you're selling a $5 thing, tons of people are going to buy. Whereas if you sell a $100,000 package, very few people are going to buy. Maybe for the $5 thing, you need to talk to 2 people to sell one of it, one of those, right? Whereas the $100,000 thing, you need to talk to maybe 100 people or 200 people to get one person to buy. And I think a lot of people don't understand the dichotomy, so they get scared and say, hey, nobody's going to buy if I raise my prices. When in reality, you just need to be able to, A, have a consistent way of getting leads and calls. And if you don't have that, then like, yeah, I would be scared as well. And B, understand that if your close rate, if you're selling something for $10,000 right now and your close rate is 60%, right? Then if you raise that thing from $10,000 to $20,000, then maybe your close rate goes to 30%, but you make— you have less clients, you have half as many clients, but you make the same amount of money, right? And then what you don't see as well is that your profit goes up as well because you have to fulfill on every single client and it costs you a certain amount of money to fulfill on every single client. If you had less clients, your fulfillment costs would theoretically get cut in half, right? And so because of that, You're making more money, more profit with less clients. So I always encourage everybody to raise their prices. I was talking to one of our clients, Gage and Max with GM Media, which I just did a breakdown video on yesterday on the channel. And they're selling at like $40K or $50K for a year package with them. And their close rate right now is like 65%, 70%, which is way too high, by the way. I said, let's go up to $50K, then we're gonna go to $60K, and we're gonna go to $70K and we're gonna see what your close rate ends up at because eventually, like, they've, I think they've onboarded like 10 or 11 clients in the past week, week and a half. So like eventually they're gonna run outta time on their fulfillment side and room on their fulfillment side. So they're not gonna have enough room to service these people. You might as well raise the price because of that, right? And that's what I told them. So, Usually the answer is raising prices is kind of what I'm trying to get at in this video. And usually the answer is like you just have to take more calls to close the same amount of people at a higher price point. So if you're struggling or like saying, hey, I'm scared to raise my prices, like that's my spiel on it. I wouldn't be worried about it because it's— you're still going to have people buy. You just might have to talk to more people than you think to get those people to buy. So hopefully this helps and I'll see you in the next video. See ya.
