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Just. Raise. Your. Price.

Name: Just. Raise. Your. Price.
Uploaded: 2024-08-29T21:00:38+00:00
Duration: 40 s
Channel: Shanli Liu, CPA, CTP
Description: In this concise monologue, the speaker critiques contractors for underpricing their services and shares a real‑world case study of a small construction…

29 Aug 2024 · 1 min

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In this concise monologue, the speaker critiques contractors for underpricing their services and shares a real‑world case study of a small construction firm they helped acquire. By advising the firm’s owner to raise prices by 10%, the business doubled its profit while maintaining the same conversion rate. When the owner attempted a 20% increase, the speaker recommended pairing the hike with a strong guarantee—on‑time, on‑budget completion or a 20% refund of the bid. This guarantee reduced buyer resistance, leading to a conversion rate of roughly nine out of ten. The speaker emphasizes that perceived price (expensive vs. cheap) is irrelevant; what matters is how customers respond—clicks, purchases, or phone sales.

Chapters

A lot of you guys are pricing too low. We looked at buying a construction firm last quarter. They were a little bit small. And so I said, hey, do this for me. Go ahead and just raise your prices by 10% because it was thin margins in the business. When he raised his prices by 10%, he doubled the profit of his business and his conversion rate stayed the same. And so he came back, he's like, what should I do now? I said, raise it by 20. And he had a heart attack. Raise it by 20 and then give a guarantee because this was kitchen remodels. Give a guarantee that you'll be on time and on budget or you'll give 20% of the bid back to them. Worst case, you're in the exact same position you are now. Best case, you close 9 out of 10. That's what he's doing now. It does not matter whether you think something's expensive or not, and it doesn't matter if you think it's cheap. It just matters what people click and buy, or what you're selling someone over the phone, right? That's all that matters.