How to Build a Business Others Want to Buy

Chapter 25How to make (a lot) more money

Want to make more money? Put your prices up.

It's the fastest, easiest way to make more money. I know you're afraid to put your prices up. You're scared you'll lose customers. But think about it this way: if you doubled your prices, would you lose half your customers?

What does value really mean?

Oscar Wilde once said, ‘A fool is someone who knows the price of everything and the value of nothing’.

I found this out the hard way.

Have you ever bought cheap garbage bags? I have. Bad decision. I hoisted the bag out of the rubbish bin; it split its side and dumped its juicy contents all over my nice clean carpet. The bag cost me $1, but it cost me $300 to get the nice guys from Electrodry to clean up the mess.

Pricing is inextricably linked to value. We focus way too much on the price of things without thinking about the value we offer in return. Most people struggle to remember the price of what they purchased even just a few hours after they've bought it. Pricing is one of the most neglected area of marketing, yet it is the easiest lever to pull and can have the biggest impact.

Write this on a post-it note and pin it up on your wall:

When value exceeds price the clients will flow.

If we can demonstrate value, price becomes irrelevant. Buying becomes a ‘no-brainer’.

Price vs value

I recall meeting my business coach for the first time at a local café. He said, ‘What's on your mind?’ I spent five minutes telling him what was bothering ...