It amazes me how often business owners have no flippin’ clue about their finances, while others have an iron-clad grasp on every penny.
Case in point:
Last week, I was interviewing a new lawn and gardening service to work at the Morris household this summer.
I asked him, “would you give me a 3% discount if I paid in cash and if I paid for the entire season up front”?
These cash offers (contractor has no credit card fee) and full payment up front are common terms in many contracts.
His answer:
“No way“.
He said it calmly and with authority.
I was a bit surprised, so I asked him to explain.
My net profit margin is about 6%. If you pay me immediately, that would obviously help my cashflow. But if I give you a 3% discount, I’ll need to hire twice as many people and do twice as much work to make the same amount of money. That is why I can’t agree to your offer.”
Daaaammmnnnn.
Way to go Mr. “I-know-my-business-not-just-shrubs”.
How about you?
Can you answer that question as quickly and confidently as my new gardener?
Think about this; for every $100 in sales, how much is left after all of your expenses?
Is it as much as you thought?
Unfortunately, the word “profit” raises red flags for many people.
But profit is different from “greed” and “excess”.
I will defend my profits till my dying day.
Otherwise, why do we work?
And if your pricing is wrong, your profits will be out of whack as well.
Let’s get your prices optimized and fixed.
In this month’s Mouster Class for Inner Circle members, I am revealing how EVERYTHING in your business revolves around price, including:
- The lies marketers tell you about needing more leads and clients. I debunk them all
- How to raise prices without losing one client
- Why profit is the only metric that matters
- 8 ways to price and increase price, no matter what your competitors charge
- The most important aspect of pricing
- Price positioning: Should you be high, low or average? The answer will amaze you
- How price affects profit more than costs
- The 2 mission critical factors to setting your prices. Without these, you are doomed to a low bank account and dwindling customer base.
- How to use the awesome power of scarcity to command high prices
- How “place” defines price.
- Differentiation versus Discrimination: Should heavy people pay more to fly?
- How not to get caught in the Bundling, unbundling, volume and multi person pricing trap
And much, much more!
But don’t dilly dally, this months Mouster Class Blueprint goes into the DSNi vault at midnight on 4/30/21.
Take care of it here: https://www.deliverservicenow.com/invitation-to-become-a-dsni-inner-circle-cast-member/
And to show that I follow my own advice, the price of being a DSNi Inner Circle member is going up on May 1, 2021 from 97 to 119.
In other words your daily investment is going from the price of a Tall Starbucks to the price of a Grande.
If you join before 5/1/21, you will be grandfathered in for life at today’s investment into your business.
