Matt Ryder breaks down how to find your real price by analyzing what customers actually paid you. Look at two years of payment data: if 100 clients paid an average of $1,500 each, that's your market value. Don't guess based on competitors or arbitrary numbers.
If you're running a business and you've just kind of slapped your pricing together, then that's probably one of the reasons why it's really difficult to sell. You don't just randomly make up your prices. So I'm going to teach you the exact method that you need to use in order to actually price correctly for the Venn diagram of all the different things in the marketplace and all their costs and then what they give you. And then you find the holes in the marketplace. Now, if you're new, then you're probably going to want to undercut everybody. And then if you want to stand out, you can either go low or you can go like undercut or go super low, or you can go ultra premium. You can try and go that way, but your pricing should not be random. You want to see what the market will bear. Just because your competitor's charging $5K, but they might be dying with no profitability, it doesn't mean you charge $5K. It actually might be worth $2K. One of the best things that you can do in your business once you're running for a while, let's have a look how much people actually pay. Let's talk about services here for a second. Let's just say that like, so what you do if you're in services, you just say like every payment plan over the last 2 years, I've sold 100 people and I've made $150 grand. So it's like $1,500 a person. Like you have to take that into account. Like that is the true market value of your product or service. So you should start charging that, not the fucking random mythical thing that you made up that makes you feel good. That's just not reality.
