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Your Prices Are Too Low

Name: Your Prices Are Too Low
Uploaded: 2026-01-28T01:45:00+00:00
Duration: 40 s
Channel: Shanli Liu, CPA, CTP
Description: In this concise business advice video, the speaker argues that many service providers price their offerings too low, resulting in thin margins. He shares…

28 Jan 2026 · 1 min

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In this concise business advice video, the speaker argues that many service providers price their offerings too low, resulting in thin margins. He shares a case study of a small kitchen‑remodel construction firm that, after being instructed to raise prices by 10%, doubled its profit while maintaining the same conversion rate. When the owner further increased prices by 20% and added a bold guarantee—"on‑time and on‑budget or 20% of the bid back"—the business saw a dramatic rise in close rates, reportedly closing 9 out of 10 sales. The speaker emphasizes that perceived price level (expensive vs. cheap) is irrelevant; what matters is the customer’s buying decision, which can be driven by strategic pricing and risk‑reversing guarantees.

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.