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It doesn't make me feel like I shouldn't charge this much, but it does make me feel like I need to over deliver. There's been a couple of client relationships where it's like, I can't believe they agreed to this. I guess we now need to make sure that we really deliver on this. But then I remember I had this one conversation that was paradigm shift for me with a friend of mine, Jonathan Kendall, who's I think one of the most underrated entrepreneur, I guess thought leaders out there. But I mean he's not really thought leaders and really do much in terms of like content and stuff, but he's sort of like a behind the scenes savage, like been a part of a few multi nine figure businesses and he's directly responsible for like their marketing and their ops and dialing offers and messaging and those types of things. But anyway, I was having a conversation with him one time about pricing our agency services and he gave me a really good frame to look at it through and he was talking about how his assistant was who had just started working with him. She was looking at this software that, that she was claiming was going to make her job easier basically. And she was like, I found the software, I think it would really help me do this thing better. And, and then he was like, okay, well go ahead and get it. And so she, she got the version that she felt comfortable buying that was like 70 or 80 bucks a month or something for the, you know, beginner package or whatever, the first level of subscription. And he then found out later that she actually really next one that the next level of subscription was going to be the version of the tool that actually really helped her unlock this level of efficiency. And when she, when she brought it up to him, he could tell that she was very timid about talking about this number. And she was like, sort of building this up as like, here's the use, here's the Use case and here's what I would do for. And so he's like, well, how much is it? And he was expecting this like, massive number. And she was like, it's. It's a. Whatever. It was $180 a month. You know, it was, it was significantly more pricey than the original tier, but still as a whole, not a lot of money. And when he heard that, he was like, oh, what are we talking about? Yes, just. You should have gotten that one from the beginning, like the get go. And I, you know, I should have explained that better to you. That, like, that the, the doubling of the cost of that service means almost nothing to me if it helps you be better at your job and do this task more efficiently. And so he was like talking to me about my pricing, because I was looking at, I was like, we, we can't scale up this at this, you know, pricing. And he was like, well, it just means that you have to talk to different clients because, like, the right client for you is going to be somebody who just wants the job done, wants it done well, and wants somebody to do it without them having to interject or intervene or think about it all the time. So he's like, the difference between you charging 3,500 bucks a month for this service and 5,000 bucks a month, when one of them allows you to build a scalable business and one of them does not, it's like to your client. This episode of the show is brought to you by Mars Men. So look, guys, I don't know if everybody listening knows this, but a couple years ago, I was diagnosed with cancer. And around that time, I also noticed that my testosterone levels were dropping like crazy. 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They're not like the person that's clocking eight figures a year, doesn't care about the extra 1500 bucks a month as long as you actually deliver on the service that you say you can deliver on. And if you can do it on a level that nobody else can because you charge more for it, then they are willing to pay that and will not bat an eye at the pricing difference between those two levels. It was a big eye opener for me to kind of the whole, you know her mosi quote of solve rich people problems. They pay better. It's more. It's it's not necessarily like, if you think you're charging too much, it's probably only because you personally would not be able to afford your own services or would not be able to justify paying for the service that you provide because you are not in a position to be able to afford that service. But that does not mean that there are not a bunch of other people out there who just don't give two shits about it. You know what I mean? Like, they're looking at it like, you know, there's. There's actually plenty of data on this where. Forget the study. There was a fascinating study that was done where there were people set up in a room and they were trying to choose between a service that they were looking at. And the, the. The wealthy people actually ended up skipping over this one product because the pricing was not high enough. Because in their mind, with a price that low, they just couldn't possibly bridge the gap in their mind for, like, they, they clearly can't provide the value then, you know what I mean? So they would immediately just go to the highest price person because they just automatically assumed that that meant that that person was the one who could actually take care of the problem more effectively. It's like, you cannot price the things that you are selling based on what your ability to pay for those things is. You have to price it based on what your ideal client is looking for. And then just make sure you deliver on. Like, if you get somebody to pay a high price, that's not that. That's the beginning of the relationship. That's not the end of the relationship. That's them getting in the door. Now it's up to you to overwhelm them with the value or the quality of the service and make sure that it's a good experience for them. But the, you know, in your mind where you're thinking like, this is overpriced or I'm getting paid too much, you know, there's a great quote from the Alchemist, which is a, which is a great book. It's sort of written like an allegorical style where it's just the, you know, author telling a story. And there's a point in there where the, the main protagonist of the story is interacting with this alchemist who's basically paying everybody in this group of people for a service that they provided to them. And he, and, and he, they agreed upon a certain price, and then he started paying everybody. And one of the people that he paid, he overpaid them for the service that they agreed upon. And Then the, the person who got paid basically said something along the lines of like, this is too much. You, you know, you, you, you're paying me too much for this. And the alchemist reply to him was bas the universe for less. Because if you do, it might hear you and give you less next time. And it's sort of like this, this whole like, you, you don't, it is not up to you to decide whether or not it's too much or too little or too little. It's up to the person who's paying. And if you're solving a real problem for the person who's paying, then it's not too much. It's what does that person value the thing that you are selling to them? Like what, what, what additional values are going to create? Which is why the best businesses are the ones that typically solve those types of problems where there's, you know, a great example is this company Hiros that I think it's Hyros that Alex Becker started. It's basically like an ad attribution software that helps you make your ads more efficient. And it's like it's a no brainer type of a service for the people, for his ideal client or his ideal prospect. Because if you purchase the service that he charges for, it will inevitably save you money on your ad spend and more money than you're spending on the ads to make them more efficient. Right? So like, there's no reason why that person is a customer. So like could he deliver that software to them at 99 bucks a month or some sort of like set fee maybe, probably. But yet he still has people who are on a $25,000 annual subscription because they're like, look, why would I not pay for this? It saved me $82,000 in ad costs this year because of the attribution that I got from that, that Meta wasn't giving to me. So yeah, of course I'm going to continue paying for this. So it's like, is it overpriced or is it undervalued? You know what I mean? Like they're the only person that gets to decide that is the person who's paying you. You should not be the person who's deciding that. So you might be shooting yourself in the foot because you think, you think that these other people that do the same thing that you do, they're overpriced or like they're, they're, they're charging an unfair amount or whatever. And it's like you're not the person that Decides that the person who's paying you decides that if they feel like the value is there, then who are you to stop them from paying you more money for that thing? You. And ultimately, and I heard it put another way one time where somebody said to me, charge enough. Charge enough to over deliver for your customers or charge enough to over deliver for your clients. It's like, the more you charge, the better of an experience that you can have for the people who are paying you the higher price anyway because you can afford to bring on an additional whatever account manager, you can afford to have another software subscription, or you can afford to send them a gift once a quarter or something. Like you can afford to make the experience overall better because they're paying that much more money for the thing instead of you being like, well, technically, you know, my cost to deliver is actually a little bit less than that, so I could probably get away with, you know, doing it like this. And I don't want to be unfair on what I'm charging. It's like those are all, you know, good things to be thoughtful about and considerate about. But ultimately, if you're delivering the value that the person is looking for, then it's up to them to decide how valuable that thing is or is not. So, like, you know, I feel that sometimes even with some of our, like, our coaching stuff, it's like, man, somebody's really willing to pay me this much money to do like a coaching day with them, or somebody's really paying, willing to pay me this much money on a monthly basis to just like, talk to them for an hour every once in a while. It's like, the answer is, yes, they are because they desire the thing that I have learned and therefore I have to make it worth my time to be able to share all the information that I've taken nine years and spent hundreds of thousands of dollars to accumulate, and that is a hundred percent worth it to them. And in a lot of ways they might be looking at it as like, wow, what a steal. Yeah, you know what I mean? Because think of all the things that we're going to do with this. Think of, think of all the money that we're going to make by using, by applying this knowledge that this person's giving to us. You can't think of it in terms of what you're willing to pay. You have to think about it in terms of what the value is for the end user. And how can you just throw more value in there. It's not about just charging more arbitrarily just to be able to charge more. It's more about thinking more through your offer stack and making it a more valuable experience so that when you do charge higher, nobody's complaining about it and they're actually really happy and they want to send their friends and, you know, family to you because you took care of them so well. So yeah, most people are probably underpriced because of that one reason. They're taking their own preconceived notions of what they would be able to afford and then casting that onto the perception of the person that they're talking to. When in reality it's like, well, that person might be operating a $200 million business and you're sitting there operating a seven figure marketing agency thinking that like, oh, these prices are too high, there's no way they're going to pay this. But then in their mind they're like, like, oh yeah, that's a steal. Yeah, sure, let's do it. You know what I mean? So don't, don't shoot yourself in the foot, man. Like just be willing to play with those, those pricing metrics a little bit and, and then once you win the contract, once you get the wire over, deliver like you can't, you know, you can't just not deliver on what you talked about because then it's just a really bad experience.
