Do You Make These Mistakes When Pricing Your Services?

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Hey everybody, Matt Gillogly here with the Practice Profit System. And on today's podcast, I'm going to talk to you about this water bottle. In fact, I'm going to tell you why your competition is making a big mistake by selling this water bottle and how if you sell the results of what's inside, you'll be able to charge premium prices. That's what we're going to cover today on the Practice Profit System. So if you followed any of our podcasts, you'll notice that we've done quite a bit on pricing. And, you know, one of the fastest and easiest and simplest ways to grow your business is to charge premium prices. Now, the problem that a lot of doctors make is they have this belief that they are in the pricing business, meaning they've got to be the lowest priced provider in the marketplace. And I'm here to tell you, there is no faster way to go out of business than to charge and be the low-cost leader. And I'll explain in just a minute. And it all comes down to this simple water bottle. Now, this water bottle that I have in my hand is really nothing special. I mean, yeah, it's purple, one of my favorite colors because I'm an LSU fan. And my son went to TCU and my daughter went to Furman, all purple colors. So But the reality is, is this water bottle is not all that special. I mean, it's metal, it's got this kind of color thing that's supposed to tell you, you know, how warm and how cold it is, but it really doesn't work. It's got this nice logo from Rupa Health. I got it at a convention. I didn't have to pay anything for it. It's got a twist top, which I like because I work out quite a bit, and I like it because it's secure. And I like the metal bottle versus the plastic one. But in reality, this water bottle is really no different than any other water bottle out there. I mean, go to REI, go to Walmart, go to Target, go to any store, go to CVS, and there's a plethora of water bottles. They're everywhere, quite frankly. I mean, you can go to my kitchen and there's probably at least 15 different water bottles. in my house. See, that's the problem, is that water bottles are common. They're everywhere. And this is the mistake that people make when it comes to selling the services of the practice, is they look at what they do as a water bottle. They don't really think of it as anything special and unique. They think, oh well, lots of people in my market offer the P-Shot or the O-Shot, or or shockwave therapy or GAINSWave or HRT. So in order for us to get business, we need to charge less. And they look at what their competitor is charging for, say, a PRP procedure, and they say, oh, they're charging $850. Well, we're going to charge $800 because that's going to be the deciding factor. And the reality is, is that for most of the customers, that's not what makes their decision. So then there's another group of people that'd be like, oh well, you know, The stuff that's inside this water bottle. See, the stuff that's inside this water bottle, this is the stuff that's really, really special. There's Gatorade in here, or there's Powerade, or there's some kind of special electrolyte. And those are the people that in our industry, what they do is they say to themselves, oh, well, you know, my PRP is better, or my machine gets better, you know, that many more platelets, or I get this much more in stem cells from my, my BMAC, or You know, our laser goes twice as fast, so it's gonna get you twice the results in half the amount of time. And quite frankly, that doesn't really make a difference to your prospect either. What really makes a difference and what people are really buying is they're buying what the inside of this water bottle gives them in the future. All right, let me explain. This water bottle is a commodity. Okay, and what's in this water bottle is frankly water. There's nothing special about it. Sometimes I'll put some electrolytes in it if I had a really hard workout, or it's summertime and I'm getting ready to go out and play some golf so that I can, you know, make sure I'm pre-hydrated before I go out. But the reality is, is it's a water bottle. What people are really buying when they buy a water bottle or when they buy a procedure from you is they're buying the future. They're not buying the present of what this water bottle— so look, I can take the ice-cold water that's in here and I can drink it. I can feel refreshed for a moment, or after a workout, I can down this and I can feel better and I can feel rehydrated, or I can put some electrolytes in there and I can feel even more rehydrated. But what if what you sold me in this water bottle made me younger? Made me more competitive, helped me recover from my workouts so that instead of doing just 3 workouts a week, I could do 5 again at the age of 54. See, what you want to sell is you have to sell the result of what's in the water bottle, not the result of the water bottle, but the result of what's in the water bottle. When you sell the result of what's in the water bottle, now what you done. Now what you're doing is you have created something that is priceless. If I told you that this water bottle, that you could drink from this water bottle and it would act as the fountain of youth, and you would get rid of gray hair and your hair would grow back, or you would get rid of wrinkles, or you'd go back to your 20-year-old body, right? Or you could have 6-pack abs. How much would you pay for this? Would you pay $5,000 for it? Would you pay $6,000? Would you pay $10,000? Would you empty the bank account? Would you take a loan on the 401? Chances are you would pay a hefty amount. Now, if you had cancer and you had— or you had Alzheimer's and I could offer this to you, you'd pay whatever, right? Because what you're doing is you're buying the result. People buy the result of what it's going to give them in the future. See, your competitor is selling a water bottle. They're selling PRP. They're selling GainsWave. They're selling HRT. What my clients sell and allows them to be able to charge premium prices is they sell the result of drinking from this water bottle. So in the ED clinics, I used to joke we were not in the erection business. We were in the orgasm business. And that was really for her, not for him, because really what the guy wanted was he wanted to provide that for his partner, for his wife, his girlfriend. Okay. And so that's what we sold. We used to think we were in the erection business. Nope. We were in the orgasm business because that's what guys wanted to give. That gave them the sense of power, that sense of understanding. My clients today that are in light bladder leakage or vaginal dryness, what they're doing is they're selling the fact that they can wear khaki pants again. Interesting concept, isn't it? So the concept is called future pacing. And what you want to do, one of the ways that you provide and you can sell for premium prices is to future pace. And future pace is a simple neurolinguistic programming phrase of you actually want to take people into the future of what the future is going to be like when they drink from this water bottle.

Okay.

I keep going back to this water bottle because it's the metaphor. Okay. Your competitor is selling, oh, you're going to have a great metal water bottle. You're not going to get Alzheimer's. You're going to sell to them, you're going to be younger. You're going to be stronger. You're going to be able to work out more. And so that's what you want to do, that future pacing. What is the thing that people can't do now that they want to do again In the future? What is the thing that people can't do right now or are limited in doing right now that they want to do and again in the future? Now you might be saying, well, but Matt, I'm in the aesthetics business. Well, why do people want to look younger? They want a promotion. They want to meet that special someone. They want to be the envy of their friends. They want to be, um, something that they used to be. They want to recapture that old glory, right? Now, that's the difference of how you charge premium prices. This water bottle is just a bottle. What's inside here is just a liquid. People buy the result of the liquid inside the water bottle. That's how you charge premium prices. And I'm going to tell you this right now. Unless you are charging at least in the top 10% in your marketplace, you are undercharging. And by the way, if you think that maybe you can't charge that because you live in maybe a place of the country that's not as well off, I will tell you those places are even more ripe for charging premium prices. You know, I tell the story, I've got a client who's in the middle of nowhere, Texas, has an aesthetic studio clinic, does over 7 figures a year, and his town has 15,000 people in it, and he charges premium prices. Oh, by the way, he has a competitor. The competitor tried to come into his market and undercut his pricing. His business went up, my client's, not the competitor's, because people— he understood selling the end result of drinking from the water bottle.

All right.

That's our lesson for the day. Short, to the point, quick. And I hope you get it. If you don't, recommend that you listen to it again, because this water bottle— there's nothing special about the water bottle. In fact, there's nothing special about what's in here. What's special is the result that it gives me so that I can live that better, younger, fuller life in the future, because that's what I want. Thank you for listening to the Practice Profit System. Hope you enjoyed it. Have a great day, everybody. We'll talk to you next week. Thanks.

Thank you so much for listening. If you liked this episode, take a moment and share it with your fellow medical professionals, or post a positive comment and rate it on wherever you just listened. Now don't forget, you can get a copy of my book, The Anatomy of a 7-Figure Medical Practice, for free. Just pay $7.95 in shipping and handling, plus you'll get over $1,197 in free bonus Simply go to srpmedicalmarketing.com/book. That's srpmedicalmarketing.com/book. Thank you so much, and we'll see you next time.