Sabri Subhi explains how to justify higher prices by diagnosing the client's problem, articulating it better than competitors, and positioning your solution as the fix. He recommends value-based pricing: charge about 10% of the value you create.
Founder Sabri Subhi joins me now in the studio. I really look at business as an incredible vehicle to really make good and make change in the world. How do you explain your value to your customers so that they can sort of choose you instead of other vendors? That's a great question. So realistically, you know, it starts in being able to articulate your prospect's problem better than that they can themselves, right? Most people in most companies and most salespeople, they're simply trying to pitch their product and service to people whether or not it's going to be a good fit. And I'm very, very against that. That's not the way that you build a big business, right? So realistically, the first step is doing what I call the diagnosis and diagnosing what the problem is that your prospect is experiencing and then being able to truly seize whether or not you can help them. Not everyone's going to be a great fit for what you do, right? So the first thing is to do a diagnosis and to be able to articulate their problem better than they can themselves and then really position your product as being the solution to that problem. Now, I know that sounds very simple in theory, but what most people do is they jump straight to the selling part. And it's a very thinly veiled agenda of, okay, I'm speaking to a salesperson, they're trying to make a commission and sell me at all costs. But if you, if you sit down and you really understand that person's problem and you can tell it to them, you're going to be able to articulate that problem to them better than any one of your competitors. And when you're able to do that, your prospects rightfully assume that you have the solution to their problem because you know exactly what their problem is. So that's really like the premise of it. And then you want to start to think about what is the value of you being able to help them solve that problem. And then that kind of opens up, you know, another path of, you know, people will typically pay, you know, for speed and they're also going to be paying for convenience as well. So someone might be able to get to that solution by themselves. Then if that's the case, then you're going to be selling the speed and the opportunity cost for them to go alone rather than go it with you. Right? And it all really comes down to think about, like, what is the value that that person would assign to that problem? And I'm really big on value based pricing and only charging 10% of the value of how big that problem is. Right. So, you know, and that's in a whole lot of there's a lot of different applications for that. You might be a personal trainer, and it might be a weight loss goal for some investment banker who really wants to lose weight before his wedding. You might be in a digital marketing agency where, you know, every client is worth $10,000, and they're trying to get, you know, five clients, so that's worth $50,000. And then you're just charging, like a 10% of that $50,000 as the value creation that you're going to be providing for that client. Hey, guys, we're coming to you from Lockdown in Melbourne. If you enjoyed this video, please like and subscribe. Share it with a friend. We're dropping a video like this every day on YouTube, and I will see you in the next video. To.
