Eric Deeran says service providers undercharge because they can do the work themselves. If your close rate exceeds 20%, you're pricing too low. Doubling or tripling your rates attracts better clients and higher profits.
You're probably undercharging right now. We've worked with hundreds of high-ticket businesses and so many people undercharge for what it is that they do simply because they know how to do it themselves, right? It's like if you go and get your car worked on at a mechanic. If you're a mechanic, it's not worth $100 to go get an oil change. But if you're like me and you're not a mechanic, which is most people, then it is worth $100 to go get an oil change because you don't know how to do it yourself. Whereas you're probably an expert in what it is that you do, but because of that, you're undervaluing yourself and you're not charging what you should. And I'd challenge you to say you could probably double, triple, or quadruple your prices And people would still happily pay it. And we did this in our own business and we saw more profit. We had less clients to deal with. They were better clients and we just had a better time in business because the worst clients are the ones that are cheap and don't want to pay what you're actually worth and they're just an absolute nightmare to deal with, right? And so a lot of times you have double or triple or quadruple increases in price that you can do simply because you are the expert and you know how to do it yourself. Like, you know how to do this thing, whereas your clients have no idea how to do the thing that you're really good at. And so I challenge you today to look at your prices and say, hey, if your close rate's 80%, 90%, 50%, whatever it may be, if it's above 20%, you should be raising that price, right? Because I'd rather close less people who pay me more than more people who pay me less. So hopefully that helps.
