How TO Make A TON Of Money (in just a few minutes)

Everybody who's watching this video, I'm about to make you a ton of money. In a few minutes, I'm going to walk down exactly how you can price stuff to get more people to buy really expensive things that you sell. And if you don't sell something really expensive, you're going to want to by the end of this video right now, if you can write down on a piece of paper what the average price of the thing that you sell is, let's say it's 100 bucks. What I want you to do is I want you to put 10x, I want you to put 50x, I want you put 100x next to it. Now I want you to write the price of what that would be. If the main thing is 100 bucks, 10 10x is 1000, 50x is 5000, 100x is 10,000. Doesn't matter what business you have, if you want to make lots of money, sell more expensive stuff. There's no strategic benefit to being the second cheapest person in the marketplace, but there is for being the most expensive. There's only one strategic benefit to being the lowest cost person in the marketplace, which means that you went in with that strategy and you built an entire business around operational efficiency, automation, and you built the whole strategy of the business on being able to provide the same thing for less. If you did not do that and are simply trying to do the same business as other people and and compete on price, you will lose, you will have no profit left over, and you will get price to the point of break even and you will just run a nonprofit. Thank you. That's probably not why you got into business. No matter what you sell, you should have something that's 1050, 100 times more expensive than thing you're currently selling. When I bought my first nice suit for myself, a friend of mine was like fashionable and he like took me to the store or whatever. I put a suit on and I remember checking the price tag and it was $13,000. Homie didn't have $13,000. And I was like, fuck. And then what they did is after I took that off, they put me in a suit that was like 2,900 bucks or $2,500. And I was like, get with this, right? I didn't realize it then, but they had completely price anchored me and that was 100%. The strategy was get put you in the most expensive suit and then you're like, geez. But the thing is, is that some guys will look at that and the right Guy will be like, done. I'm in. Price anchors have two benefits. And this isn't the only point of the video. This is the first point. For everybody who isn't going to buy the really expensive 10x50x100x thing. You anchor the rest of your pricing against that first price. So you're showing them this thing kind of like ripping off the band aid. It's like stretching the length through which they see your pricing. If I say $1,000 first and then I say $100,000, it's like, fuck, that's huge. But if I say $1,000 first, and then I say $100 or $10, that sounds like less. If you have a pricing menu for a membership, for example, of any kind, you want to have the most expensive one first, not the least expensive one, and then everything else will look cheaper by comparison. You do it. The wine you can do with software, you can do with memberships. It works in every situation because it works on psychology. Now let's talk about the other side of the equation. All right, so we've got the anchor, and then we've got other options of pricing. So how do two options. Good question. I like to use the small, medium, large example to kind of like break this down. So you can use this as small, medium, large popcorn, small, medium, large Cokes, whatever. But let's say you've got 10 bucks, 5 bucks, and you've got this middle price. Where you put this middle price will indicate which product gets sold the most of a certain percentage of people always buy the cheapest thing because that's who they are, and that's fine. The next people are influenced by the pricing in general. So if I have a $5 thing and a $10 thing, I can make this medium six bucks. So I make my medium a dollar more than my small. And it seems like a great price. But the thing is to ever forget is that we make up all the prices. All of these are made up. So we got 510 and we got 6 or 650 or 699, and we're gonna get. A lot of people are gonna buy this one. Now if I bump this to here, $9, and I make this 10, what are people gonna do? A lot of people are buy this one because by comparison, it's like, wait, just for a dollar more, I get twice of the small. Well, that sounds like a great deal. And so fundamentally, people want to buy great deals. They don't want to buy cheap stuff. Think about the difference there. Price is what you pay value is what you get. The deal is discrepancy between the two. For example, and this is a big one. This is a. I want to break this belief for you. If right now you sell expensive stuff, $5,000 things or $10,000 things, if I were giving you a Ferrari, brand new, and I said it's 10 grand, and I'm walking up to people on the street and they believed that I was actually going to give them the Ferrari, how hard do you think it would be for them to come up with ten grand? What would they do? They would call their friends, they call their family, they would take out of their credit cards, they take a loan. Why? Because they know it's worth more than ten grand. Whenever you are selling something expensive, the reason someone is not buying it is simply because they do not understand the value. Because if they understand the value and they believe that you're giving them a Ferrari, they will find a way to get the money. I want to banish this whole concept of, like, they can't afford it. Everyone can afford it if they believe the value is there. And so the idea is not that we're giving cheap stuff away, we want the value relative to the price to be a huge bargain. When you're coming up with the stuff that you're going to sell, the first thing that I want Everybody to do, 10x50x100x, pick one and then figure out what you would have to fulfill to make it worth that they are getting a Ferrari for 10 grand. And that's how you get people to say yes over and over again. And the other thing is, is that it'll start to teach you that people are willing to spend more when they see the value. The other benefit of having this huge price anchor is that whales will buy it. So a certain percentage of the population, just like I said, a certain percentage of population always buys the cheap thing because that's who they are. There's another percentage of population that always buys the most expensive thing because that's who they are. It doesn't hurt you at all to have something that's super expensive on your menu. Put it there with the expectation that you're never going to sell, and be surprised when you do. If you didn't get a gasp from the price, you didn't go high enough. You want that gas because that gasp shows you broken the rubber band of pricing that they associated with what they expected your product or service to be priced at. And so if you're like, oh, it's 100 grand. They're like, whoa, I was not expecting that. You're like, oh, no worries. And then you can explain why it's worth it. But then it's like, you know what? I think we can do 80% of that for 10, because that's our. Our silver. That make more sense for you? Yeah, that would make a ton of sense for me. Now if silver is 10, bronze is 8, and gold is 100, you sell a lot of 10ks. Because now it seems like nothing. It depends on the customer segmentation. But one of the big mistakes I see people do is that they'll have like $100 a month, $110 a month, and $120 a month. You want to meet buying Personas. So you might have $100 a month, you might have a $200 a month, you might have $1,000 a month. Because the people and the needs between those customers are different. So you want to price based on the value deliver. Like, if I'm selling something to Coca Cola, it's going to be more valuable to Coca Cola than it is to a local brewery. So you can price it accordingly. If you are a CRO expert, conversion rate optimization and you can help an E commerce store by 10%. If the store is making a million bucks a year, 10% is 100 grand. If the store is doing $100 million a year, 10% is 10 million. You literally can provide more value to them because of who they are, not because of who you are. So 10x50x100x. Think about what you provided for each of those levels. Put that at the top of your menu. Be the first thing that you explain to people. Expect 1 out of 20 say yes to it. And for everybody else to feel much more comfortable taking the other option. Bye.