Ep 131: How to 10x your prices

Subtitle: 

Take a moment to think about any famous, successful company. (Apple, Tesla, Google, Facebook, etc). One thing that most people think about when they think about a successful company is profit; how much money do they make, and how do so many people pay so much money for their products? We definitely don’t have a simple solution, but instead, a few ways you can break out of your box and increase your prices and therefore profits. We break down mindset, communication, commodities and how to not be one, defining your unique strengths, strategy, and more on this week’s episode!

 

Summary:

In the episode, the guys discuss the importance of raising prices in a business, particularly during times of economic instability. They acknowledge that many business owners may feel hesitant to increase prices, but argue that it's necessary for sustainable growth and profitability. One of the key points the guys make is the importance of understanding the mindset of the customer. Brad emphasizes the need to communicate the value that a business provides to its customers, which can help support higher prices. Ken stresses the importance of not becoming a commodity and argues that higher prices benefit all parties involved, as it ensures that businesses are able to provide quality service and remain sustainable over the long term. Bob offers a few questions that can help business owners focus on promoting the human elements of their work and expertise, such as "What differentiates me as a person?" and "What makes me an expert in these areas?" He also encourages business owners to work on their attitudes of scarcity and abundance mindsets, which can influence their perceived ability to raise prices. Ken advises business owners to focus on their unique strengths and passions and use those to differentiate themselves from competitors. He suggests taking away the label "agency" from a business and finding ways to break out of the box to become more unique. Bob talks about the importance of recognizing that not every prospective client is a good fit for a business and that it's important to not devalue oneself for the sake of gaining clients who are unwilling to pay what one's worth. Throughout the episode, the guys offer actionable advice and strategies that can help business owners raise their prices successfully. They also highlight the importance of mindset and attitude in achieving this goal, as well as the need to differentiate oneself from competitors and communicate the value that a business provides to its customers.

 

Top 3 Curtain Pulls in this episode: 

 

1. Mindset matters. Mindset is crucial for business owners when it comes to increasing prices. Having a positive and abundant mindset can help communicate the value provided to customers and confidently set prices that reflect that value. Conversely, a scarcity mindset can lead to undervaluing work and hurting the bottom line. By recognizing and working on mindset, business owners can achieve their goals for growth and profitability.  “I would challenge you to work on your own attitudes of scarcity, and abundance mindsets. That's really at the heart of being able to raise prices regularly without pain and without struggle.”

2. Change the name to change the game. Labeling a business as an agency can be limiting for increasing prices, as it connotes a commoditized service. By shifting away from this label and focusing on unique value propositions, businesses can avoid competing solely on price and differentiate themselves in the marketplace. This can lead to increased profitability and long-term success.  “I think you immediately limit yourself, and you call yourself an agency or a marketing agency or an advertiser, whatever it is website development, because it's commoditized. You got to change the name to change the game.”

3. Knowledge, strategy, attribution. Focusing on knowledge, strategy, and attribution can allow businesses to create higher prices. It allows them to communicate their value, optimize resource allocation, measure ROI, and position themselves as valuable partners. This can result in increased revenue and profitability. “There's three things in my opinion that I've observed, that you need to focus on that will make you valuable; it's knowledge, strategy, and attribution.”

 

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About The Guys: 

Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from from 2000 -2017. He is also the author of 3 books. More on Bob: 

• Bob on LinkedIn

• twitter.com/BobHutchins

• instagram.com/bwhutchins

• Bob on Facebook

Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently that knowledge is being applied to his boutique agency. More on Brad:

• Brad on LinkedIn

• Anthem Republic

• twitter.com/bradayres

• instagram.com/therealbradayres

• facebook.com/Bradayres

Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken: 

• Ken on LinkedIn

• Metacake - An Ecommerce Growth Team

• Growth Rebel TV

• twitter.com/iamKenOtt

• instagram.com/iamKenOtt

• facebook.com/iamKenOtt

 

Show Notes:

[0:59] Ken opens this week’s episode by introducing the topic, increasing your prices. 

[2:17] Bob asks important questions in light of recent economic instability. “How do you raise prices? How often? And how do you do it?”

[3:34] Brad discusses the importance of understanding the mindset of the customer and communicating value to them.

[4:34] Ken talks about the importance of not becoming a commodity, and how higher prices benefit all parties involved. “It's a perpetual spin to the bottom, I think it's bad for everybody. you can't be a commodity.”

[8:00] Bob says that it’s crucial to focus on and promote the human elements versus technology and offers some questions to help your business get there. “I think people buy expertise. What differentiates me as a person? Why am I unique? And why am I an expert in these areas? And why can I be a fit for you and what your needs are?”

[9:29] Ken discusses the importance of public perception. “The way you don't be a commodity is you become the only option.”

[13:43] Brad talks about an element of customer empathy that sets his business apart from others and the success they’ve seen from it.

[15:46] Ken discusses the role that founders and their values play in becoming ‘the only one’. “My advice to myself, is to lean in, figure out what it is that you love, and what you're better at than anyone in the world.”

[17:28] Bob brings up the importance of mindset and attitude and how they can influence your ability to increase your prices. “I would challenge you to work on your own attitudes of scarcity, and abundance mindsets. That's really at the heart of being able to raise prices regularly without pain and without struggle.”

[18:34] Ken breaks down some important questions to break out of the scarcity mindset.

[21:19] Bob talks about the importance of two ways you can narrow down; you as a person and your niche.

[24:32] Ken discusses the value in taking away the label “agency” from your business and how that will help you break out of the box and become unique. “I would propose that the biggest barrier to raising prices and to charging more is yourself… you need to charge more and not do more.”

[27:29] Bob reveals and dives deep into three things that will make you more valuable. “There's three things in my opinion that I've observed, that you need to focus on that will make you valuable; it's knowledge, strategy, and attribution.”

[30:22] Ken dives deep into the value behind not calling yourself an agency; it only creates limits for your business. “I think you immediately limit yourself, and you call yourself an agency or a marketing agency or an advertiser, whatever it is website development, because it's commoditized. You got to change the name to change the game.”

[32:37] Ken suggests a mental exercise and series of questions to help your business break out of the mental limitations holding you back from increasing your prices. 

[35:16] Bob talks about the importance of recognizing that not every prospective client that walks through your door should be a client you serve. “I'm not going to devalue myself for the sake of getting this immediate, quick dollar, when they're not willing to pay what I'm worth.”

[37:03] Ken wraps up by discussing a quote he heard. “Once someone realizes that you need them, they realize that they don't need you.”