Evan Carmichael argues that revenue depends on the value you provide, not price. Competing on price attracts low-budget clients and limits growth. Instead, differentiate your product and add a cause: he shows how a scarf business justified a premium by donating $1 per scarf to hepatitis B vaccinations.
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Add more value. If you want to be able to charge what you're worth, if you want to be able to build a successful company, you need to add a ton of value. The amount of money that you make will be directly related to how much value you're providing for your customers, how much you're helping them out. It's a pretty simple equation. Executing it is difficult. But the concept is simple to understand. If you want to make more money, add more value and stop competing on price. When you compete on price alone, it's a loser's game. You're not going to bring on ideal clients. You're constantly going to be struggling to get by. You're not going to be able to hire great people for your team. You have to stop competing on price. Stop— start adding more value and you're going to love your business more, you're gonna have more fun, you're gonna attract much better clients. You wanna work with people who understand the value you provide and not just cater to the guys who have no budget, who are barely paying you a tiny profit for what you're doing. I got a great question from a YouTube viewer, Corona, who has a new scarf. So she's got a scarf product line, wants to know, how do I not compete on price? 'How can I stand out in the scarf market?' And one of the ideas that Corona had was to have a social cause and give a dollar for each scarf to support hepatitis B vaccinations of poor children. This is a great concept to start with, okay? If you are doing anything social or anything green, you can usually charge a little bit of a premium. Typically consumers will pay maybe 20 to 30% more if they know that there is a green component or social component to it. Okay, so add that in, use it in your marketing. If it's something that you believe in, put that in there. Okay, you could charge a little bit more. But you're still in a super competitive market. You look at scarves, okay? Scarves are highly commoditized. You can get scarves for, you know, a couple of cents all the way up to hundreds of dollars. What's the difference between the cheap knockoff, really fake, you know, crappy quality scarves versus the super high-end ones? And where do you want to play? I don't know anything about your scarf. You have to stand out somehow with your scarf, with the design, with the colors, with the feel, with the material, something. You have to have something different. If you are just a normal scarf like every other scarf on the market, you're not gonna make it. You're not gonna have a lot of success. The, the social component is great. You might get a little bit of attention for it. But it's not gonna make the difference. You have to have a truly remarkable product on top of having a cause that you believe in for your company. So what is it with your scarf, right? And this should be in everything that you talk about. When you tell me about your scarf, I should be able to quickly understand what makes you different, right? I could be telling people about it on this YouTube video. Here's a scarf that does XYZ. So that's gotta be important. You have to play that up. And it comes from what are the frustrations of your customers. It could be something practical like, "I need to stay warm, you know, and current scarves don't do that well enough." Or it could be something more in a fashion statement. You know, "I want to stand out. I want to be a rebel. I want to be different. I want people to notice me." And your scarf can help them do that. This is the value that you're adding. You have to figure out what more you can add on top of a regular boring scarf that everybody else is selling. So I love the social component. And for everybody who's watching, who's thinking about giving back, it's your duty as an entrepreneur to give back in some way. Doesn't have to be a lot, doesn't have to be a lot of money, it could be your time, but it's your duty to give back. You do it to do it, not because it helps your sales. You do it because it's the right thing to do. And it's okay to use that in your marketing. But on top of that, you have to have something different, creative, unique that adds value to the lives of your customers in a way that your competition does not do. When you figure that out, you are on the fast track to success with your business. Believe. If you guys like this video, thumbs up below. It always makes me wanna do more for you, and please leave a comment below, even if you just wanna say, "I'm watching." Thanks for making the video. I love seeing those come in. They really make my day, all day when I see them come in. So thank you so much, and I'll see you soon.
