What separates the winners from the losers? Why is it that so many small businesses fail while only a few succeed? This video will answer the question for you with the help of two of the lamest superheroes in history: Captain Penny Pincher and Excessive Spending Man. Prefer to read? Here's the transcript:
- You're probably not charging enough. One of the best ways not only to make more money, but to get better clients, is to charge more. So for the past couple of videos, we've talked a lot about price. We've talked about the need to charge more appropriately for your services. And in the first one we talked about how customers can be fickle, and their loyalty can be fleeting, so you wanna charge appropriately. And then in the second video, we talked about how charging a low price can actually affect your volume of customers because it can diminish your perceived value. There's at least one other aspect that's worth discussing, and that's the types of customers we're attracting with our price. And I'm not talking about white collar, blue collar. I'm not talking about demographics, not talking about anything like that, but rather the customers, how they perceive and value you. So this is a trend I started noticing a couple years ago, and then I started talking to some of my friends and entrepreneurs in the area, and they all said the same thing. And this is really counterintuitive, but they said that the customers that you billed the least, who paid you the least, were often the most demanding. And again, that doesn't make sense on its face value, because the people who are paying you the least, they're the least valuable customers to you, so why would they be the most demanding? And why is it that the people who are paying you the most are usually the easiest to deal with? And again, this ultimately ends up coming down to how they perceive and value you. The biggest clients that I have are usually the most reasonable and the least demanding, just the easiest to deal with all around. And, of course, because they're great clients and we value them, we do the best job possible. We make sure that we're going above and beyond, that we're performing beyond expectations, but they're still just so easy to deal with, and ultimately are just glad that the work is getting done in a timely and correct fashion. And the flip side of that are the people who don't pay much of anything. They're smaller accounts; they don't need us as much. But a lot of times, because of that, they end up being more demanding. There's always something that comes up, and it's just really hard to please the people who are smaller accounts. And this is really hardly an isolated phenomenon. You can see this across all industries, with products, services, everything. The person who pays $200 for a website, against all logic and reason, is gonna be more demanding than the person who pays $10,000 for a website. Somebody buying a $1,000 beater car is gonna be more demanding as to the specifications compared to a person who pays for a $60,000 Lexus or something like that. It doesn't make sense on the surface, but ultimately what they're willing to pay is showing how much they value what they're buying, and in this case we're talking about them buying your time and your expertise. And the ones who don't value you show that, every time when they're unwilling to pay for your service or try to get free advice out of you. And again, the flip side of that is true. The good clients, the people who value you, who feel like you provide something unique to them, show you just how much they value that every single time they write you a check, because talk is cheap. At least in business, the truest display of love is gonna be them paying you. Thankfully, the fix to this is really, really simple. You have to value yourself, and the way you do that is by charging appropriately. And when you do that, all of these issues resolve themselves. The ungrateful bunch will go away because they're not willing to pay you the prices you're charging. The clients who do value you stick around, and you're making a more appropriate amount of money for the value and the services you're providing. And because you're charging the right price, and because you're able to continue providing great service to those clients, you're gonna attract even more clients just like the ones that you do like, and the ones you actually want to keep. If you feel like you're not getting paid what you're worth, do me a favor and like this video and drop a comment below, thanks.
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