this reminds me of a lecture i attended in college by an industrial psychologist. He worked for a large texas grocery chain and told a story about a visit to a location in an affluent neighborhood. They had a new, high quality coffee brand on sale but no one was buying it. He instructed them to do the opposite and raise the prices and sure enough it flew off the shelves. the lesson was primarily about understanding your customers, but the quality of the coffee was justification enough for the price increase.
Running a personal photography coaching business in Hungary, and raised my prices 4 times in the last 2 years. No one has ever complained. In fact, I've had more happy and satisfied customers. Someone admitted in a Tripadvisor review, that my price is very high, but it also has a lot of value. So it was my client who justified my price, I loved it. There was one case where I was fool enough to give a 50% discount: that job was the worst I've had, and because of my clients, I had to do extra hours emailing to keep their accounting fine. I also recognized something important: when I give a discount, I feel myself crap deep down inside, and this radiates to the outside as well, which clients may sense. And that's no good... Thanks Derek for the great video!
Having too low a price for your service also scares away customers, they think you are too cheap. The video production side of my business didn't start selling until I increased my prices by about 300%. I then recorded a testimonial with one of my customers and stopped filming halfway through because my customers kept saying how inexpensive I was. When I asked him the direct question of whether he thought I was too cheap he told me to add another 50% to my prices.
I recently raised my fee on my wedding officiant business by 30% and my nearly 100% conversion rate has dropped to about 60%, but I’m preparing a promo video that no one else in this niche (in my town) has. So I’m sure conversion will jump a bit as this video will really show people why I’m more expensive than everyone else. On my public speaking training business I’ve been told by some that I’m to expensive but business has been great, so new prospects will get at least a 10% increase. Thanks for the much needed reminder!
the price elasticity is true and for the comment with loyalty in mind, try adding an incentive for them to keep coming since old customers are cheaper to acquire than new ones. really enjoy all of your videos. Does anyone know if he hosts seminars?
Everything you said was SPOT ON. you were annoying in your earlier videos but I was able to see through it. You're KINDA COOL now. 😉. Subscribed and shared.
#1 Not a barber. She's a "stylist". #2 You're right about raising prices, but if you value your old clients, be mindful not to alienate them. Some value their client loyalty more than a buck.
She's a barber. For people who don't know what a barber is, it's actually a distinction. You need difference licensing for barbers vs hair stylists in nyc.
this reminds me of a lecture i attended in college by an industrial psychologist.
He worked for a large texas grocery chain and told a story about a visit to a location in an affluent neighborhood. They had a new, high quality coffee brand on sale but no one was buying it. He instructed them to do the opposite and raise the prices and sure enough it flew off the shelves.
the lesson was primarily about understanding your customers, but the quality of the coffee was justification enough for the price increase.
Good story
Running a personal photography coaching business in Hungary, and raised my prices 4 times in the last 2 years. No one has ever complained. In fact, I've had more happy and satisfied customers.
Someone admitted in a Tripadvisor review, that my price is very high, but it also has a lot of value. So it was my client who justified my price, I loved it.
There was one case where I was fool enough to give a 50% discount: that job was the worst I've had, and because of my clients, I had to do extra hours emailing to keep their accounting fine.
I also recognized something important: when I give a discount, I feel myself crap deep down inside, and this radiates to the outside as well, which clients may sense. And that's no good...
Thanks Derek for the great video!
i found that people who were willing to pay more were actually more grateful and actually enjoyed the product more
Having too low a price for your service also scares away customers, they think you are too cheap. The video production side of my business didn't start selling until I increased my prices by about 300%. I then recorded a testimonial with one of my customers and stopped filming halfway through because my customers kept saying how inexpensive I was. When I asked him the direct question of whether he thought I was too cheap he told me to add another 50% to my prices.
Yep
I recently raised my fee on my wedding officiant business by 30% and my nearly 100% conversion rate has dropped to about 60%, but I’m preparing a promo video that no one else in this niche (in my town) has. So I’m sure conversion will jump a bit as this video will really show people why I’m more expensive than everyone else. On my public speaking training business I’ve been told by some that I’m to expensive but business has been great, so new prospects will get at least a 10% increase. Thanks for the much needed reminder!
Glad to see a follow-up to your stellar video. Thank you for putting my mind at ease.
You're welcome
Love the video! Does this apply mainly for services or does it equally apply to retail/merchandise?
Thanks for this! Provided exactly what I needed right now.
When I raised my prices two things happened. First I got treated better. And second, people quit complaining about the price.
Amazing.
the price elasticity is true and for the comment with loyalty in mind, try adding an incentive for them to keep coming since old customers are cheaper to acquire than new ones. really enjoy all of your videos. Does anyone know if he hosts seminars?
:-)
already subscribed! ;) I like this like always
Glad to hear it
Everything you said was SPOT ON. you were annoying in your earlier videos but I was able to see through it. You're KINDA COOL now. 😉. Subscribed and shared.
:-)
can it be tried for online products as well?like ecourses??
PhysiqueIndex yes. Of course.
Why wouldn't it?
hell ya!
Liking The less generic, more Derek, presentation. Thanks.
Bivibuddydan
Awesome Information!
You're welcome
Great job ! 😂
Preach it!!!!
Thank you
exellent
Glad you liked it
#1 Not a barber. She's a "stylist". #2 You're right about raising prices, but if you value your old clients, be mindful not to alienate them. Some value their client loyalty more than a buck.
Gitsum actually, she’s a barber. Any other questions?
nah dude, she's a hair stylist Derek lol IT has to be cultural
Derek, she's not a barber. I imagine a barber some black dude with a thick beard. She's more of a hair dresser. Sorry dude. It's just is lol
She's a barber. For people who don't know what a barber is, it's actually a distinction. You need difference licensing for barbers vs hair stylists in nyc.