Make More Money In Any Business (Without More Customers)

Let's look at the easiest way to make more money in your business. Whether you're buying a business or whether you're flipping a business or you're starting from scratch, this is a lesson I've learned a long time ago. If you give me like 5 minutes, I will show you that it's not your funnels, it's not your con copy, it's not your creative, but there is one thing that you need to understand that can change everything for you for any business, and that's something called price elasticity. It's this idea that consumers will actually continue to buy things Depending on how much they want them, depending on how much they want the product, right? They'll pay more and more and more. I'm gonna show you just some quick little pricing tricks and a spreadsheet in like a couple minutes flat that'll change this all for you. So, okay, the fastest growth lever in your business, it's not more customers, it's pricing power. Let me get smaller on this video. Shout out to Jason and the Jasons and everyone for making me make this video. But okay, the brand and Ryan, okay. The brand example I'm gonna use here is Blue Angels Hearing. It's a company I bought a couple years ago. We grew it from like $50K a month to like $300K a month. Here it is sitting on this desk right now, the hearing aids. We sold it like a year later doing like $3 million a year. Here's a screenshot of some revenue from it. I had to go dig it up, whatever. It's not, the numbers aren't that impressive, but it's just proof that this is real. If that's what you need to believe me, then you're watching the wrong video. So let's keep going and talk about this a little bit. Let's see, this is what price elasticity looks like. Shout out to these charts we made, boom. Let's get this lesson to you while I'm still hyped about doing this video. So price elasticity, so what I want you to understand is that as you raise the price of a product, you know, revenue per visitor, let's say it's price per product, revenue per visitor, the conversion rate, yellow line, will go down. You wanna find yourself in this sweet spot zone. If you raise the price point, too much, if you get outside of this, you're gonna make less money. But as you sit in the middle, right, it doesn't matter that the price has actually gone up and that the conversion rate has gone down because overall you make more money. And the actual magic of it is, is that you're adding just pure margin, right? So because if you're just adding price, you're just adding pure margin, which for us at Blue Angels Hearing Aid meant that we bought this brand that was doing, you know, like $50K a month at like $249 for a hearing aid. And we popped it up to $399, $499, tried different price points, but it allowed us all of a sudden to really scale, right? It allowed us to really scale those ads because the reality was running a breakeven was tough. Hearoski product, we sell one, you know, you buy a hearing aid, your problem is solved, you don't come back again and again and again. I'll do another video later about how we like added MRR in the back end of that with like an insurance product and whatever, one-click upsells, doesn't matter. But point is, is that that extra money allowed us to scale, right? Before we were unprofitable, the business would've died, but adding in that extra margin allowed us to spend a lot more money and acquire a lot more customers and solve a lot more people's problems with hearing. So at first, as the revenue goes up, you're gonna see the conversion rate go down. That's totally fine. You wanna find the sweet spot. The only way to get there is testing. In this scenario, this chart that I made is, it says 200. It wasn't really the sweet spot first for that brand, but The peak is where every brand, you wanna find the sweet spot with pricing, and that's gonna be the easiest thing you can play with. A/B test pricing as much as you can. You're gonna find sweet spots there. Now let's go on to the next slide, y'all. Oh wait, right? Okay, boom. So we raised the price and made more money per visitor. Money per visitor is the real metric here that I'm tracking, right? Old price, you know, $249, new price $299, whatever those numbers are exactly used, but we went from making $5 a visitor to $6.35 a visitor. Even with fewer buyers, right? And so that you can do this as well too. Let me give you, let me dive in more a little bit, show you some more examples. So it's just basic math, right? At a $249 price point, you have 5% conversion, you're making $5 a visitor. At a $349 price point, at a 4% conversion, you're making $8 per visitor, right? So if I'm paying a $3 CPC, right? If I'm paying a $2 CPC, whatever, it doesn't matter. Like you really CAC to LTV, customer acquisition cost compared to lifetime value of the customer, is really the only KPI that matters except for KPIs vibes, right? Other than vibes, which are the KPIs I'm chasing in my life these days. But that's all that matters. Let me show you, I made a little spreadsheet for you here that shows it out a little bit, right? Let's look at it here, like real life examples. Okay, so let's say the price we input is, say the COGS are like $100. And, uh, we're selling it for $249 at a conversion rate of 5%. That means, um, the profit per sale is $149, profit per visitor $7.45, um, uh, or $7.45 per 100 visitors, whatever, doesn't matter. But let's say the COGS stay the same, it stays $100. Let's say we start selling the product for $400, and but the conversion rate drops to 3. 5, right? Now all of a sudden our profit per visitor is $10.50. So it's gone up despite our conversion rate going down. Now this will continue, right? To show you that chart before, this will continue. 500s bring it down to 3.2. $12, we could bring it down to 3. $12, we could bring it down to 2. Where's it bring us? 8. So our sweet spot would be in between that. You wanna find your sweet spot. Um, now let's go back to this little presentation that I got going on for you guys here. Badda bing, badda boom. Present. Okay, so you wanna find your sweet spot. So you wanna test that. You can do it with every product, front end, back end, all of it. We can get in much more complicated ways to play with that, but the most simple way is not gonna be to change. If you have something that works, I implore you today to go play with pricing. Um, and a lot of the way you can do that is to do is look at competitors. That was the biggest thing we did was I just looked at the competitor at the market We were just, uh, with Blingios Hearing, we were just comped out cheaper than our competitors. Um, and to be honest with you, it was just silly. You know, in a commoditized goods market, right? Commoditized pricing pressure is really real. So, uh, if you're selling the same product, which many of you are, if you're selling a super unique product, you can still play this game. But if you're selling a product that is white labeled, if you're selling a product that is drop shipped, if you're selling a product that is, um, even just only slightly unique, but competitors in the market have something similar, competing on price is not a way to win. It is a race to the bottom. I can promise you that. So again, as you wanna raise your price, you wanna find that sweet spot zone, right, in the middle, and you won't know that until you play around with pricing. So I guess that sort of sums this up. I wanted to keep it under 10 minutes. We're at 7 minutes and 30 seconds. Subscribe for more breakdowns like this. I'm gonna try and make a video. There's a bunch of you on Twitter that are making me do this, and I respect that immensely. Anyway, let me know in the comments if you guys like this. Hopefully you found this useful, and my rant wasn't all over the place, but test your pricing. It can make a massive, massive difference. Cheers.