MBA1569 Take The Pricing Challenge

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Welcome to the 100 RMBA show, the business podcast that helps your business get to the next level with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of the Hundred Dollar mba, a company business training and community online. And today's episode is actually a challenge and a lesson combined. Today you're going take the pricing challenge. Many, many entrepreneurs under price their products and services. This is my experience in working with over hundreds of thousands of different entrepreneurs. Their prices are simply too low. And today I'm going to challenge you and give you some specific instructions to adjust your pricing and make more money, make more profit and have more of a sustainable business. Now you might be saying, Omar, this is not the time to increase prices. You know, we have a global pandemic and the economy is not in its best place and there's social unrest. I'm here to say that there is no perfect time to change your prices and it's actually a good time for you to do this because your business needs it. It needs the extra revenue. And if you're gonna follow what we're gonna talk about in the challenge today, you're not gonna need to worry about it's gonna be a comfortable transition for you and your customers. It's not gonna really be that earth shattering. We got a lot to cover, so let's get into it. Let's get down to business. So many entrepreneurs are very sensitive when it comes to their own prices for their products and services. Many set their prices and never adjust them for years, if at all. This is a recipe for disaster for your business. You need to continually increase your prices and change your pricing to see what works best for your business. The value of the dollar is not the same today as it was yesterday. There's inflation. You have other costs involved in your business. You need to charge more. Because often in any business, what you're offering today was not the same as what you're offering three years ago. Your value is more, your experience is more, your service is better, your product has improved, so your price has to reflect that. So I want you to increase your price today. You're going to take the pricing challenge, and this is a very simple challenge. And your job is to go ahead and implement. And what is this challenge? I'm challenging you in the next 30 days. And for many of you, this is very simple. You can do this in a few minutes on your website, But I'm giving you 30 days in this challenge. And there's a reward if you pull this challenge off. Okay? So in the next 30 days, I want you to increase your prices by 10% minimum. Okay? 10% is not a lot of money. Okay? And in most cases, 10% is not gonna make a big difference in the mind of the customer. I'm gonna give you an example. Say for example, you offer a course for $300. If you increase your prices by 10%, that's $330 or 329, whatever you wanna do. If I see a course for 300 and then tomorrow it's 329, I'm not really too concerned. It's not really that big of a difference. The price of 330 or 329 and 300 kinda lives in the same place in my brain and doesn't really change the way I feel about how much this product costs. But let's say, for example, you sell 40 courses every single month. It's a very conservative number, but you would be making $12,000 a month in that case. But if you increase your prices by 10% and charge 330, you'd be making an extra $1200 every single month. Think about what you can do with 1200 extra dollars, how much money you can pump into ads, how much money you can maybe make a hire with this, a part time hire. And, and this is a very conservative number. This could be much higher in terms of dollar amount if your volume is higher. If I was selling a hundred courses a month and making $30,000, then that's $3,000 extra if I just increase it to 330. And we're talking about only 10%. Okay? 10% is nothing. That's like tax in a lot of places in the world and a lot of states, it's the price that's not even thought about. And that's just the minimum. If you want to go 15, 20, that's up to you. But if you want to take the challenge, go at least 10%, because that's enough a difference. And for you to see some profits that are going to come into your business that are going to be really welcomed in this time, 10% is on a huge hike. 10% is not something that you need to make a huge announcement about. And this works for high price items, high price products and services, or a low price. If you think about the corner store, how much is a Snickers bar there? You don't really know for sure. If it's a $50 or $2 or 250, you have no idea. But to you, they're all the same price. When it comes to a laptop, let's say like a MacBook, that's $3,000. You don't know if it's 2,700 or 3,000 or 3,300. This is all kind of living in the same world. And if the value is conveyed, if you can show the value in your website, through your webinars, through your sales copy, then the price really matters a lot less. If you're going to give them tenfold of what they're going to pay in value in roi, they're good to go. People are not going to change their decision about buying based on a 10% increase. Now, the reason why we're taking this challenge, the reason why you're going to participate in this challenge, is so that you can break this habit of never changing your prices and being super sensitive about it. And 10% is nothing, but it gets you into the habit of understanding I need to bump my prices, I need to change my prices as I grow, as my business evolves, as I improve my products and services. So you have 30 days to do this. Okay? Now what happens if you actually increase your prices? This is what's going to happen. All you got to do is leave us an itunes rating and review and mention that you took the challenge, that you went ahead and took the pricing challenge and implemented what I just said. Okay? Mention your website, mention your business in the review so I can give you a shout out right here on the show. Okay? I want to give you a chance to get exposure and I want to also reward action takers that took the challenge. So we're going to get as many people as we can. We're going to have some dedicated time on the episode to give some shout outs throughout the next few months for people that took the challenge and will mention your business. We'll talk you up and give you a chance to get in front of over 115,000 daily listeners of the podcast. And of course, podcasting is evergreen, so people can hear this stuff and these shout outs and your business for years to come. So this is just a little something. I'm trying to incentivize you to go ahead and do this. So right now, put it in your calendar as a deadline. Thirty days from now, you will have this done. You will have written your rating and review on itunes so we can read it out and give you a shout out about your business. And you're gonna thank me for it because this that extra revenue is super welcomed, especially now, and it's going to allow you to break through this period of time and go out the other side with strength. It doesn't matter if your business is a service or physical products or digital products or software. You can do this. Even if you just increased pricing in the last few months. You could do it again. 10% is not that much. Don't get held back by the thought of all my competitors are not doing this. What if I do this? People don't shop around as much as you think and people will pay more if they're gonna get more. They feel like you can deliver on your promise better than the competition. They're gonna do it. Think about all the things that people buy that are more expensive than the competition. Why don't people buy Apple products? Why do people buy Teslas? They're more expensive than the competition because they deliver a better experience. Why do people go to Disney on vacation? Disney tickets are not cheap. Why do people prefer to take their families to Disneyland versus Six Flags, for example? Because it's just a different experience. Six Flags is. But if I have to choose, Disney's going to be a better experience and they'll pay more for it. Not only in ticket pricing, but everything else they spend when they're there. We know this as consumers, but we need to apply it as business owners.

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To wrap up Today's lesson, mark it on your calendar. Thirty days from now, you're going to complete the pricing challenge. Increase your prices, whatever it is, product, service, Software, ebook, by 10% minimum. If you can go higher, good for you. Okay, Once you do that, write us a review on itunes. Say, hey, I'm so and so. I took the pricing challenge. This is my business. This is my website. I want to hear about it. I want to give you a shout out. I want to hear the results. Even if you haven't seen the results yet. I want to hear how it made you feel as an entrepreneur to change your prices, to put a few more dollars in your pocket as a business. Thank you so much for listening to the $100 MBA show. Our job here is to push you and take you a little bit outside your comfort zone so you can grow. Hopefully I'm able to accomplish that in today's pricing challenge. Before I go, I want to leave you with this. Don't overcomplicate this. Don't try to do a split test. Don't try to, you know, survey people. This is only 10%. Change the price on your website and in your payment processor and all that kind of stuff. And that's it. Okay? Nice and simple. Sit back and see the results. Thank you so much for listening and I'll check you in Tomorrow's episode Q and A Wednesday. I'll see you then. Take care.

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