Next Level Pros with Chris Lee: “YOUR Prices Are the Reason Your Business Is Struggling”
Episode Summary (Dec 23, 2025)
Episode Overview
In this episode of Next Level Pros, host and serial entrepreneur Chris Lee draws on his personal business journey—including a $2.2 million bankruptcy—to dissect why underpricing is often the core reason small businesses struggle. Lee reveals the critical impact of pricing strategy on long-term success, debunking myths of affordability, and offering practical advice for moving from survival mode to thriving through strategic price positioning.
Key Discussion Points & Insights
The Fatal Flaw of Trying to Be “Affordable”
- Chris Lee recounts his early mistake when starting a home security business by undercutting competitors’ prices, thinking it would attract more customers but ultimately “leaving a very tiny margin,” leading to bankruptcy.
- Quote: “If you’re the cheapest in the market, you’re not serving the customer. You’re guaranteed you won’t be around when they need you.” (01:00)
The Three Pricing Truths Every Owner Must Grasp
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You Have Two Customers: Your Team & Your Buyers
- To attract and retain great staff (“customer number one”), you must price high enough to compensate and train them—otherwise, the end customer (“customer number two”) suffers.
- Quote: “When you charge too little, you’re not being generous. You’re starving your business. You can’t deliver elite service with bargain pricing.” (02:43)
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A Dollar to You is Worth More Than a Dollar to Your Customer
- Raising prices—even modestly—can double your profits without eroding demand. Example: Raising a $100 job to $110 increases profit by 100%.
- Quote: “That extra 10% barely registers to your customer. It’s literally everything to your bottom line.” (04:12)
- Take some of the incremental profit and reinvest it into customer experience, further differentiating your offer.
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The Middle Market is the Most Dangerous
- Avoid middling. The lowest tier is only workable for giants (e.g., Walmart). Pretending to be premium without the economics puts businesses “where most companies go to die.”
- Quote: “When you’re in the middle, you’re pretending to be premium without the funds to back it up, or trying to be the cheapest but constantly being underbid.” (06:10)
Comparative Analogy: Walmart vs. Louis Vuitton
- Walmart chases massive volume with tiny margins, requiring immense scale.
- Premium brands like Louis Vuitton sell vastly fewer units for exponentially greater profits.
- Example: $20 Walmart bag ($15 cost) yields $5 profit vs. $500 LV bag ($40 cost) yielding $460; Walmart would need to sell 92 bags to match LV’s profit on one.
- Quote: “That’s what happens when you price cheap. You’re literally working 92 times harder to earn what one premium sale could give you.” (08:20)
Handling Pushback on Pricing
- Use questions to lead the conversation when customers doubt your prices:
- “Why is it important to you that we’re profitable?” (Customer will realize profitability ensures quality and support.)
- If asked for discounts, offer transparency about where corners could be cut, and even refer out to cheaper competitors if needed.
- Quote: “That is how you stand firm on price, with clarity, not apology.” (10:30)
- Quote: “‘If you’re looking for someone cheaper, I’m not your guy. But I do know a couple guys down the street…’” (11:05)
Practical Takeaways: Resetting Your Pricing Mindset
- Map the Market
- Identify the cheapest and most expensive local competitors (12:10)
- Find Your Position
- Determine if you’re stuck in the risky middle (12:30)
- Ask Why You’re Not Higher-Priced
- Is it mindset, offer, or confidence? (12:45)
- Add Value, Don’t Cut Price
- Consider lifetime value-boosters: faster service, better materials, longer warranties (13:10)
- Raise Your Price
- Even a 5-10% hike can boost profit by 30%—empowering you to upgrade people, service, and stability. (13:48)
- Quote: “Your goal isn’t to be the cheapest. It’s to be the company that’s always standing on firm ground.” (14:12)
- Final advice: Focus on building a business that survives to serve, not one racing to the bottom.
Memorable Moments & Notable Quotes
- “Pricing isn’t just a number. It literally is a strategy. It tells the market who you are, how you operate, and how long you’re going to be surviving.” (01:45)
- “Profit is not greed, it’s security.” (09:55)
- “The middle is for losers in a market priced high to low.” (06:24)
- “Every dollar over your cost goes directly to your bottom line. That’s what allows you to serve longer, hire better, and actually stay in business long-term.” (04:30)
Key Timestamps
- 00:00-01:30: Chris shares his underpricing mistake and major business loss
- 01:30-06:35: Three pricing truths, importance of team as “customer”
- 06:35-09:30: Walmart vs. Louis Vuitton analogy, “middle market” danger
- 09:30-11:05: Handling price objections and boosting customer confidence
- 12:10-14:30: Actionable advice for resetting pricing mindset and market positioning
By the end of this episode, Chris Lee’s message is clear: pricing power is the ultimate business survival tool. A premium position not only funds your team and quality but also secures your company's future—while middle-of-the-road, “affordable” pricing is a recipe for burnout and failure.