Life isn’t math
You’ve heard (I’m almost sure) that you can do whatever you want to achieve. All of that with formulas on: Exponential growth Compound interest Constant growth Time value 10% of the TAM (Total Addressable Market) Dividing how much money you want in a year and divide it by hours Reach You being in front of “more opportunities” Sending more proposals/quotations Etc. There are more nuances to that. The important thing here is: unlike math, a formula won’t apply to all of the scenarios to bring…
Maths is contextual
And here’s Rory Sutherland having a better explanation on why even maths is contextual. “We often, when we look at data, we look at averages. Averages are misleading because what matters is variance.” And averages are the common ground. The thing that “fits into the market”. The safe space of the known. Of “what is”. But not of the potential. Variance. Of what matters.
5 guys, kids and hot dogs
These are 3 types of tricks our brains play in communication. 5 guys Using the same words, yet talking of (or at least thinking of) different things. If you don’t ask to clarify… things can (will) go sideways. Spend less time with your kids Hearing something weird and just assuming it is what you think you heard. That can also bring weird moments if you don’t dive deeper into what’s that you just heard. It could be “Spend less time with your kids”… or “Spend less time with dickheads”. The…
It’s not about *your* worth
When you do work, you’re not supposed to charge “what you’re worth”. That’s irrelevant. What’s relevant is how you can figure out what’s worth to your customer. ‘Cause when you figure that out, you both can focus on the real thing that will move the needle. You’ll make more educated decisions. You’ll work together to get to that thing as fast. When you know what they value, and deliver, they’ll be delighted. And they’ll be happy to pay what you never considered before. What you charge will be…
About your brand
Today’s message comes from friend-of-the-list and fellow emailer Russell Wadlin, from TailWhip. Your brand. Don’t talk about it.Be about it.✌️ —Russell.
You’re too expensive. Justify yourself
Way 1 Justifying yourself and/or trying to talk them into “reasoning” why you’re worth it won’t pull the trick. Anchoring your offering down, won’t do it either. Bumped into this vid where the “guru” (aka marketing-bro) lowers the price (anchors down), trying to set a comparison to then try to move the perception up. It’s bullshit. (I can tell you, because I’ve done that and it NEVER worked.) Here’s what he said. Someone is telling you “you’re too expensive” and they compare your product or…
Justifying yourself. A breakdown.
Justifying yourself Someone is telling you “you’re too expensive” and they compare your product or service to the competition.[Here’s what you should do:]Ask them, “If I charge the exact same amount as my competitor, would you go with me or with them?” In customers’ language it means: If I go as low as them, will you buy from me? (pretty, pretty please? I’m willing to do it.) You’re setting the context at the bottom, in your competition’s playfield. With their rules. With your customer’s…
You’re more expensive than your competition.
Yes, I am. [Silence]. What you’re looking for with this answer and this extremely uncomfortable silence: the reaction that will unfold what’s really behind the price objection. In this game, the one who speaks first, loses. ○ Why is this so expensive?♠ Based on situations like these and businesses like yours, that’s the price.○ So, if we were bigger/smaller the price would be different?♠ Yes. If you were bigger, the price would be higher. ○ What are your costs?♠ I’m curious, how would this…
Raising prices
It’s not a money problem. When your customer (or you) think that raising your prices is a matter of price-sensitivity, think again. It’s not necessarily that. Is $5 expensive? Is $25 000 reasonable? Maybe. Maybe not. It depends on the context AND the value your customers assign. When you get to set the context first, it’s simpler to get your customers to understand what’s going on. On how they can translate value into something tangible for them. When they don’t understand that, the only…
The safe way to increase prices
Raising prices based on inflation, higher costs or whatever you choose. It all goes drip by drip. Not too much so that your customers don’t run for the hills. To not disrupt the system. Slow: 1,3,5,10… Small changes to increase. Safe: Keeping what you have. Short term: Not big changes now. Sales to keep. Revenue to keep. Profit not to lose. Don’t stir the pot. It’s a safe way. It focuses on the present. And it is irrelevant. Why would your customers have to pay for it? It’s not their fault…
