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Solving rich people problems allowed to charge rich people prices. They pay better,

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they're easier to work with, and ultimately they allow you to build a business that can

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withstand different seasons and be in a position to succeed longer.

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The wealthiest people in the world see business as a game. This podcast, the game,

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is my attempt at documenting the lessons I've learned on my way to building acquisition.com

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into a billion dollar portfolio. My hope is that you use the lessons to grow your business and

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maybe someday soon partner with us to get $200 million in beyond. I hope you share and enjoy.

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One of the biggest secrets that people who make a lot of money have is that they know which type

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of customer they're trying to sell to. When people are poor, they tend to sell out of their own

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wallet. They sell using their perception of what money is. They think something's expensive and

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therefore they don't want to be offensive to whoever they're selling to. But what that is

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is fundamentally a selfish viewpoint because you're never putting yourself in the other person's

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shoes and the other person might have all the money in the world and just want to solve a specific

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problem. And so what I want to walk through today is why charging more has five significant

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benefits to your customers that actually make you a better service provider by charging more money.

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And it'll give you five specific benefits around your actual business itself that will make

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your business more successful. And if you don't know who I am, my name is Alex Mosy. I'm an

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acquisition.com. We run a portfolio company that does over $200 million a year and I make these

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because I want you to make lots and lots of money and then hopefully someday partner with us.

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Beyond that, it's just to make you more money. All right, so have you ever seen this meme that's

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like the customer says, well, what exactly am I going to be getting for $50? And then it has the

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rich customers like wire set. Let me know what next steps are, right? Is this wildly different

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viewpoint that poor people have versus rich people? And at the same time, I made three tweets in a row

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that each one of them massively outperform and it was so weird to me that this was like a novel

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concept. And I said, solve rich people problems. They pay better. And if you solve rich people

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problems, they will make you one of them. And when you solve rich people problems, you get to

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charge rich people prices. And so it's this interesting concept that a lot of people miss out on.

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And part of the reason that a $50 person is saying, well, what exactly am I be getting? If somebody's

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got $100 in their bank account, you're asking for 50% of their net worth, right? And so for them,

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it's a very important decision, but it's also completely ridiculous. And unfortunately, this

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still might be half the population doesn't mean necessarily should sell to them, right? And at the

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same degree, that $50,000 might have been less than 1% of that other person's net worth. So they

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just didn't even care. It would have been the equivalent of trying to sell a dollar to that person

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is a hundred dollar in their bank account, right? And the thing is is that you can only go to zero,

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right? Like you don't need to be so poor, right? But you can be infinitely rich. And so your

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upside is uncapped, but your downside is zero. And so when you deal with rich people, you have

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unlimited upside, which is why they are better customers. Now, like I said, there's five things

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I want to talk about from the customer perspective. And my whole goal of this is to actually sell you

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on one, increasing your prices, but two, increasing the quality of your customers. Because if you

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increase the quality of your customers, you increase the quality of your business. And in a very,

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real way, the smarter the people you sell to, the actually better the client results are. All right,

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so let's dive into the five. So number one, when you charge more money for your products or services,

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you get an increased emotional investment, right? Because on the flip side, if you decrease your

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price, people care less about your products and services. So if you ever have anything that you have,

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you require something on behalf of the other person, which almost all products and services do,

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even physical products and services, people have to open up a box, they've just set it up,

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et cetera. And so if you have a very low cost item, people won't even give it the time of day,

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they won't even try enough that even if your product or service is good, they never even gave it

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a shot. And so when you raise the price, you raise their emotional investment. And in a real way,

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you actually increase the likelihood that they get results. So the second way is that it increased

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that their perceived value. So I tell this story a lot, but I'll tell you right now. So there was

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a research study where they had three bottles of wine. All right, they had a cheap wine,

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they had a mid-price wine, and they had an expensive one. And they had people try them out,

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and they had them rank them based on what they thought. And so people said, I think the most

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expensive wine's the best, the middle price is the middle, and the cheapest wine was the worst.

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And that's not that surprising, except when the research has explained that all three wines

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were the same. And so in a very real way, when you raise your prices, you do actually make

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something that's more valuable, because if that's what we're trying to get at, which is value,

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price confers value to your product. A more expensive thing is perceived in real terms,

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as more valuable, even if the actual core product is the same. Why would you not want to make your

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thing more valuable? The third is results for your customers. If you increase their emotional

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investment, you increase their perceived value, what ends up happening? They actually do get better

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results. They do have a better wine experience. They do when they sign up for the gym for personal

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training versus a $10 a month thing, they get better results. And so if you want to get people

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the results that you promise, or you claim that you're going to get them, then you should stack

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every single chip in your favor that's going to get them the result that you're promising.

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And the price is one of those things. And so some people want to lower their price because it's like,

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I want to help everybody, but you're actually not. You're not helping everybody, because most of

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people aren't going to be emotionally invested. They're not going to proceed as valuable. They're not

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going to get the results that you so promised, which means that you have to draw a line in the sand

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and say, I can only help the people who are swimming towards me. So the fourth thing is that when

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you raise your prices, you actually track less demanding customers. And so anybody who's ever been

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inclined services can attest to this, but the higher the price tag, the more expensive the contract,

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the more upfront someone pays their bills, the fewer payment plans you have to set up, the easier the

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customer is to deal with. And if you've ever had this like the paid and full upfront, hey, can I

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save a little bit if I pay an all cash today? That customer, that one is the easiest one to deal with.

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The one that you have to arm wrestle for an hour to get $50 on a payment plan over 24 months.

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This investment is so important that they're going to milk the life out of you to get every pennies

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worth out of you. And it's like sometimes it's not worth it because just like what you prices,

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what you pay, values, what you get, on the flip side, just because someone pays you money,

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you may be underwater in what you have to deliver. So just because someone's willing to pay you

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doesn't mean that you should take it. The fifth benefit that your customers will get as a result of

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raising your prices is that you actually have more money that you can deliver on your promises for.

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So imagine you've got a hard-cost thing that costs five bucks, all right? And you can add and

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subtract zeros here. I'm just using simple numbers. So if you have five bucks to do the thing,

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right? And you charge eight bucks, we only have three dollars left to run the rest of your

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business, provide service, et cetera, right? Like you don't have a lot of room there. Now imagine

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you charge $50 for that same five dollar thing. You have $45 of additional gross profit that or

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additional would be $42 of additional gross profit that you can now use to blow the other competitors

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experience out of the water. Like you can, in a very real way, deliver two, three, four times the

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value. And in many times, if you do deliver two, three, four times the value, the customer gets a

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better experience. And so if our whole business here is actually trying to provide value,

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then we want to increase the emotional investment of the customer. We want to increase the perceived

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value. We want to have the least demanding person possible, have the most possible revenue

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we can have to deliver the results that the person actually wants. And so if we make these promises,

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we should stack as many of the chips as we can in our favor. And one of the biggest ones is the price.

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Now let's talk about the business side because there's five significant things that will change when

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you start raising your prices in the business. Number one is that like the example I gave, if you

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had an eight dollar thing that cost you five bucks, you have three dollars in gross profit and you've

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got to run everything else off of those three dollars. So if you were just the most efficient

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person in the world, right? Let's maybe just run on half of that, which is $15 or sorry,

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$1.50 left, right? We're already paper thin here, right? On the flip side, when you have a

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significantly higher price, you have way more room to make mistakes. And I say that because no one's

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perfect, we all make mistakes in business. And what you don't want is mistakes that you can't

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recover from. And having a premium price product or a luxury product that has a lot of margin

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there allows you to make mistakes. And as businesses are seasonal and you have macroeconomic

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environments, the people who don't have that padding are the ones that go under. And so having that

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padding in a real way can increase the likelihood that you can play the game in the long run.

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The second thing is that as a business, it actually increases your perceived value of self. Like

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what do you think about when you think about, you know, a Walmart versus a SACS with Avenue or

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a Neiman Marcus, right? They occupy different spaces in your mind. And if you're the business owner

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of that business, then having a higher perceived value of self, which a lot of times when people are

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starting out, they don't think they're worth very much. And sometimes they're right. But the thing

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is that you still need to charge certain amounts so that you can have the excess resources to get

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better. If you never have any money left over, you can never reinvest in yourself. You can't

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reinvest in your employees. I'm getting a little bit ahead of myself in terms of things that you can

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do. But, well, screw it. This leads naturally to the next one, which is when you have extra cash

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leftover, you can reinvest in your product, right? You can actually research and you can test out

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new things. You can make prototypes. You can test out new divisions of service. You can attract

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higher level talent to your business. If you have no margin, the best people aren't going to work

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for you. Why? Because they're going to go to the real business owner who understands how margin

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needs to work so they can attract the best talent. And then now you're not only being out

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competed by that person in terms of profits, but they also can scale way better than you because

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they have decentralized decision making because they have lots of smart people all working together

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because they priced the product right and they're dealing with the right types of customers.

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Whereas you're sitting here dealing with fires all day because of people haggling over $50

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with employees who can't string sentences together because you can't pay anybody who's worth a

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shit to actually work for you to terrible life. I know because I lived it. So just don't make

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that mistake. Like start off high and allow the extra profits to increase your perceived value

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self. Hope you attract the better customers. Have the profits to reinvest in the business itself.

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Attract better quality employees. Increase the conviction of your sales team if you do sell

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ever because think about it. If they're selling the shit product and they see the other guy on

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the market who's more expensive the only thing they're going to have is we'll wear a lot cheaper.

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They know you're not better. But if you're the salesperson you can approach and say well yeah,

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I mean if you want you can try that one first and then come back to us because that's what everyone

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else does right or you can not make the mistake and actually save yourself a little bit of money

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and instead of buying twice just buy nice ones and solve the problem for good. And so the sales

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people can enter these phone calls or these conversations with the conviction that they're actually

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going to help this person and that is the best way to sell is having the full conviction that your

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product is the best and you can't say your product is the best if you're trying to do it on margin

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and you don't have the money to reinvest in good people reinvest in keeping it innovative

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at the at the front of the market. You can't do it right and so I'm a big believer in just

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making big promises and then delivering on big promises. Like that is the types of businesses

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that I like to build and when you have all of these higher paying, lower demanding, happier

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customers, your perception of the real impact you're actually making goes up and so your conviction

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over the entire business and your mission of like I actually came here to help people

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starts to become reinforced and it becomes this snowball that starts rolling and you have these

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testimonials and these reviews that start rolling in and the momentum builds. On the flip side if

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you don't have that, you have less margin and it becomes this vicious cycle in the other direction

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where you're not getting these testimonials or you're getting these chargebacks and refunds

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from these demanding customers that had unrealistic expectations because it was such a high

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percentage of their network. There was nothing that was going to save them from themselves, right?

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And so you have two stories that you can play out and solving rich people problems allowed to

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charge rich people prices. They pay better, they're easier to work with and ultimately they allow

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you to build a business that can withstand different seasons and be in a position to succeed

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long run. This is very fortuitous timing wise but the time this is being made, the richest man in

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the world, everyone's like, what about big tech? What about AI? And I believe me, I think it's

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scary shit. So the richest man in the world right now is not big tech, it's not big pharma, all the

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things that the news wants to talk about. It's a man selling $10,000 versus, all right? If you don't

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know who he is, his name is Bernard Arno, he owns most of the major luxury brands that you've heard

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of. So if you've ever been to a luxury mall and if you haven't, I really strongly recommend that

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you go to one because it might not be in your neighborhood, it might not even be close to your city,

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but you should go because what will happen is it will stretch your mind in terms of what you

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believe is possible. If you don't make a lot of money and you see a purse for $10,000 and you see a

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jacket for $50,000, it changes something about how you see reality. You're like, and I would urge you

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to not say those people are ridiculous. I can't believe someone would spend money on that. What I

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want you to do is actually empathize with the buyer. What kind of person would spend $50,000 on a jacket?

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Well, what conditions would have to be true in order for that to make sense? Because think about this,

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a lot of people are like rich people are crazy, but rich people are the ones with all the money. So

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they must have done something differently than poor people. So try and think about why would it make

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sense to this person? Well, if I can pick from all jackets and I have so much money that the

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difference between a $100 jacket and a $50,000 jacket in relative terms is a $10 difference to me

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in my wealth, then I just want the best jacket. And so I'm willing to just pay whatever it is because

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if you had a significantly better jacket for $10 more in your own net worth, you probably would

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be willing to pay for it. And so do they. It's just that they have more zeros. And so Bernardo

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capitalized on this. And so there's four distinct positions you can have in any marketplace.

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You can have bargain, which is the absolute cheapest one, which typically is poor quality in general,

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poor experience, but barely, barely gets the job done, but it gets the job done. But barely,

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the next is best value. All right. So this is the difference between like a Walmart and a target,

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right? Target is better value. It's got brighter lights. It's cleaner in theory, right? And it's

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just a little bit better, right? It's the best value for the buck. The third position in the marketplace

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is premium. So it's the best verse. That's the that's the high end Lexus, right? That's the BMW.

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These are premium products. They're above average based on price. It's not the best value,

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but it is better than the best value. And then the fourth position in the marketplace is luxury,

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where the price has no cap. And part of the value of the product itself is the cost that people

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know you paid to get it. So Bernardo knows lives in this luxury bubble. It's where people associate

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their status with the purchase they made. And what an amazing position to be in. He's like, so I

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just raise my prices even more. And people want to buy more. And so there's called Beblin goods

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in economics. They actually defy the supply demand curve rules because typically when you raise

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prices, you decrease volume. But in luxury goods, when you raise prices, you increase how many

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you sell. And that creates this unbelievable amount of profit, which is what has now propelled him

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to be the single richest man in the world. Something to learn from this guy. And so the number one

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question that I got from all the the tweet responses I had from those three or four tweets in a

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row I made about about solving rich people problems says, well, what are rich people problems?

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It's a great question. So rich people have the same problems that poor people do. They just want

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them solved differently. And if we go back to our trusted value equation, the big thing we want is

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we want to deliver a big dream outcome, right? We want to deliver an outcome that they want.

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Number one, number two, we want them to believe with very high confidence that if they work with us,

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they're going to get what we promised. On the bottom side, they want it to be incredibly fast.

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So as soon as they pay, they want to get. And then they want to have as little effort and sacrifice

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is extremely possible. And with the rich speed and convenience are paramount because the money is

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never an issue. It's how much are you going to ask of my time and how painful are you going to make

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this for me? And so if you think about the white collar echelon, you've got investment bankers,

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you've got management consultants, all right? At the highest level in my opinion of this kind of

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white collar world, who deal with rich clients, the banking world fundamentally goes to rich people

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and says, I'm going to allow you to give me a billion dollars. And I'm going to take that

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billion dollars. And I'm going to give you back five billion dollars in 10 years or five years,

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or whatever. And they're like, okay, well, what do I have to do? And they're like, nothing.

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You just write me the check. Like, okay, so I write you the check and then there's nothing else I

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have to do. Correct. Well, what's my perceived likelihood of achievement? How do I know this is

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going to happen? Well, here are the other three funds I've done. And I've averaged X over five

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years in each of these ones. Okay, so you've done this three times over 15 years. And you've had

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that each time. It's pretty high perceived likelihood of achievement. The dream outcome is I want to

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make way more money. And I'm going to do it without any time or effort on my part. Here you go.

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That is how billions of dollars are made because they find what what problem does a rich person have?

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What what can they can do with their money, right? Which is why investment vehicles and investment

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opportunities appeal to the wealthy. And the more passive you can make it the less time involvement

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that have the more turnkey it is, the higher the likelihood that you have a tracker that they're

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going to get what you have promised, they'll write you an unlimited check. If you can get 20%

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returns like clockwork with virtually no risk, you can tap into literally unlimited money.

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Anyone massive amounts and a key point here was risk, right? If you find a way that there

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basically is no risk and you can get 20% returns twice the stock market, you can have as much

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money as you want. Now, here's where the little wrinkle comes in for those types of solutions.

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Many times you can find those things, but the opportunity can't take unlimited money.

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So buddy of mine had figured out a short term revolving credit line thing for specific businesses

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that can't get credit lines, but they had assets and excess of the credit line, meaning

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if they defaulted for whatever reason, they could claim assets that were worth more. So as asset

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backed loans. And so he was able to get 50% annual returns, but he maxed out that entire market

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with like 20 million dollars of liquidity, that little niche that he had found in business.

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But 20 million dollars may be more than what you currently are working with. And he structured

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his fund so that he would get 20% of the upside. And so if he takes 20 million dollars and he does

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50% growth every year, right? He's able to grow it to whatever it is. I don't know, 100 million

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bucks at the end of this. And he gets 20%. So he makes 20 million dollars. And so for many of you

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watching this, you'll be like, I'd be happy with 20 million dollars. And so all you have to do

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is find ways to solve rich people problems. And that's a big investment bubble. But let's

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go down to like day-to-day types of businesses. Rich people will want off in the same services

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as poor people because they are humans. But the way they want it delivered is going to be focusing

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on the bottom two variables of value, effort and sacrifice and time. Rich people will always pay

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for speed. And so if you don't have a fast option, or if you look at a marketplace and there's

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lots of slow stuff, the easiest way to appeal to the rich is just do the same thing in half the time.

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Whatever the service is, if it's dry cleaning and they can do it in a day, return it by end of day.

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Right? And the effort and sacrifice. If you were in any kind of home services type business,

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a lot of the issues there is English speaking people, right? A lot of people don't speak very good

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English. They would pay the premium to just know that one, their stuff's not going to get stolen,

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two, the stuff's going to be done consistently every time. And three, they're going to

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speaking to somebody who understands them immediately. And they don't have to repeat themselves.

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And then say an entire sentence in English and say, Comprende or C, right? They don't want that.

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In this mind, this isn't America. So whatever your native tongue of your country is,

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apply that thinking to whatever the service is. You just want to make sure that whatever

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the rich person's native tongue is, is you're making it as easy and effortless as possible for them

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to communicate with you in whatever way they want. And so if you only have a phone number,

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well, be the person that can accept anything so that if they email you, if they shoot you a text,

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if they WhatsApp you, if they phone call, you can accept anything because you've made it more

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easy and convenient and effortless for them to communicate with you. And so I want you to think

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through these value equation variables because that is that is fundamentally how you deal with rich

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people. It's that they just want it to be effortless. They don't want to think about it. And they

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will pay you through the nose to do it because for them, it's not through the nose because you need

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to make sure you're selling out of there while I'm not yours. Hey guys, real quick, if you're new to

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the podcast, I have a book on Amazon called $100 million offers that over 8,000 five star reviews

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and it has almost a perfect score. You can get it for 99 cents on Kindle. The reason I bring it up

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is that I put over a thousand hours into writing that book and it's my biggest gift for our

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community. So it's my very shameless way of trying to get you to like me more and ultimately make

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more dollars so that later on in your business career, I can finish the part with you. So that's my

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gift. Go check it out. Amazon and back to the show. One of the main things I want to hit here

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is how you sell to rich people. Okay. The big thing that poor people do when they're trying to sell

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in general is again, they sell it at their own wallet. When I say that, it's like, if you're poor,

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you think this means a lot. And so you feel like you have to justify your price all the time.

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If I hear that, I might automatically know that this person is a probably poor, B doesn't

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do with many rich people. And so they will weed you out knowing that you don't know how to do

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with people like them. Real talk. When you sell to rich people, the benefits for them are always

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around it being the best, not it being the best value. It's not I want to get the most bang for

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my buck. It's I just want the most bang. Period. And I want it to be as easy and effortless as

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humanly possible. So I went to a fur coat store when I was in Park City. And I actually met one

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of the best salespeople ever met. I got a really good overcome from him that I'll tell you right

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now because I think it's awesome. Layla was trying on these fur coats because I think they're ridiculous

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and I love that stuff. And we at the time lived in Austin, Texas. So it's hot all the time. There's

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literally never a point where you could wear a fur coat in Austin. And she said, you know, it's not

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about the money. She's like, I just don't think I'm ever going to wear this thing. And he said, well,

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if they were free, would you take one? And she was like, well, good point. He's like, well,

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then it's not not about the money. And he just redirected it back to the price. Now, what's

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interesting is is not once during the entire conversation that we had there, did he ever mention that

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the fur coat was going to be waterproof? Not never did he mention that it was going to be the

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warmest jacket, right? Because it's not going to beat the Gore Tech, you know,

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Arcteric spider, you know, whatever, you know, doubled triple platinum, right, fake down that

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can't be destroyed and flames, right? It's never that, right? All he was talking about was how we

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were going to look and feel with this jacket or how Layla was going to look and feel at events.

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And basically getting her to imagine what the experience would look like after experiencing

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the product, right? And so if you're dealing with rich people on a regular basis, you have to

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think about the things that they're going to do. And how they're going to experience the product,

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not the way you think you would experience it. And so this is where, you know, there's the golden

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rule, which is treat other people the way you want to be treated. But that's not actually the best

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rule for selling. You want to treat people the way they want to be treated, right? Which is the

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platinum rule, which if you've ever heard of that stuff. And so it's really coming from a place

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of empathy. And if right now you don't have a lot of money and you have like a little bit of

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distaste for rich people, I like from the bottom of my heart, you have to get rid of that.

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Because you cannot become something you hate. And so if you want to make more money, you have to

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empathize first with how did this person get there? What is their worldview? And how do they see

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things? Because it's the first step to being able to walk around in their shoes and make products

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and services that are actually going to serve them. Because they ultimately, if you think about the

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biggest companies in the world, although many people who work for a use Facebook, where does Facebook

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make its money? Advertisers, big businesses. And those people act like rich people. They want it

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to be as seamless as possible. And they will write it on an unlimited check. They'll say,

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Hey, you know what? Facebook, we need to drop 300 million in Q4 because we have to get it off

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our balance sheet. Buddy, mine deals with 4,100 companies. And here's what's crazy. His

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advertising agency actually has to front the ad spend. And so he, if they say, Hey, I need you

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to for this month in December, I need you to drop 300 million on Facebook ads. He has to front

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the 300 million for the ads. All right. But the thing is is that he has to do it that way because

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he needs to be as easy as humanly possible. But remember, they're good for it, right? And so he

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actually has to have a revolving credit line in the billions with a bank. And so what's crazy is

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that he charges 6% of all advertising dollars as his fee on top of whatever his normal fee is.

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And so when they drop 300 million, he gets 6%. Not bad. He gets 18 million bucks just for

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fronting the cash. And so all he has to do is constantly look at credit lines that are less than

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six so you can arbitrage on the money. And so my point here is that rich people have different

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problems. The best thing to do is study luxury brands. If you aren't in an area or you're born in

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an area that doesn't have a lot of nice stuff, I would highly encourage you to at least make a

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day trip out to like the really nice part of town, the nice mall and walk around the stores there.

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And this is unfortunate, but you will get treated differently how you dress in those places.

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Like I walk in like this and they always treat me like shit, but I kind of like it. So I'm like

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twisted in my own way. Like I like the surprise. Of course, I'm the main shopper that they have there.

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But going there dressed like you're not a weirdo. And like look around, like look at the service.

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Like when you shop at a high end store, they'll bring you bottled water that's fizzy.

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Then they'll have different selections of waters. They'll offer you champagne while you shop.

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They'll offer you scotch while you shop. It's a different experience. You're like, well why don't

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they do that at why don't they do that at tillies? You know, why don't they do that at

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fucking arrow pushed off? Right? I don't know. Is that a kid's store? It's probably not whatever.

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Hollister. That's probably a kid's store. I don't even know what what are what are cheap store

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American Eagle. All right. Very good eagle. Yeah. H&M. Yeah. Framer 21. There you go.

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Do they offer that there? Of course not. Right? And so if you're thinking about this, like who's

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going to get a better experience? Like the clothing at the nice stores is way better quality.

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Right? There's no going to argue that the experience at the way better stores is significantly nicer.

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Guess what you don't try and do? Like you're going to have somebody who's assigned to you

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in the moment you walk in the door. What can I get for you? Right? And they become you're basically

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your concierge for the entire experience you have there. And they can have and deliver that

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better experience because of the premium and luxury prices they charge. And so if I had the

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choice of two businesses where I've got a super messy rack that's sitting there and people just

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have to clamor and fight over it versus the white glove champagne. You know, how can I help you

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experience? I tend to want to serve those types of customers, charge those types of prices,

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make those types of profits, profits, and make those types of promises and deliver on them.

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And work with my employees and team, really smart people who also want to deal with those types of

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people. And so in a real way, like it isn't in crowd and an out crowd, people who are in that

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world recognize other people who understand that world. And if I can get you to think like they

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think, then you will be able to sell to them. Rich people have all the money. And so if you want to

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go get the money, go to where the money is at. There's only one way to win in a low price business.

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You have to build your entire business from the ground up day one based on having a significant

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operational advantage. You have to build your core strategic advantage as we will be the lowest

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priced person. Do not compete on best value. You either got to go premium or you got to go luxury.

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All right, luxury is your price is so high, it can first status to the buyer because your brand

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is strong. Premium, which is where most people is where I recommend you go, is actually just

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deliver significantly better in a real way service. All right, now here the point is that your price,

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like if you're an amazing marketing agency, you're not conferring status to the business by being

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expensive. You're not luxury, right? Luxury often is in consumer goods. So if you're in a business

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service type business, you're not really going to be there. It's much more about I want the best,

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I want the most bang, not for the dollar. I just want the most bang. All right, the most bang for

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the dollar is best value. And this is where the graveyard of most businesses sit. They try and offer

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a little bit more for a little bit less. And they look at the next act comes in, you try to offer

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a little bit more for a little bit less. And then eventually you can't offer any more for any less,

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and you just stay in what I consider a capitalist nonprofit. You just don't make any money,

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and you do it for years, and it crushes your soul because you kept trying to do a little bit more

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for a little bit less because you're selling the wrong person. And so if you're going to get into

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the price game, you got to go for the absolute bottom and build your business from the ground up,

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only off of remote workers automate as much as humanly possible. You come into it like the first

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answer is always how can I automate it? Not who do I hire or how do I outsource it? It's always

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how do I automate it, right? And then the second is if I absolutely can't automate it, I'll have to

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bring someone off shore. That's a different business model than you probably have and might not

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even be a business you're interested in. And the problem is there can only be one low price leader,

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the cheapest person. There's no advantage, and this is from Dan Kennedy. There's no advantage to

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being the second cheapest person in the marketplace. But there isn't advantage to being the most expensive.

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And so when you sell to rich people, you get to charge rich people prices. They pay better,

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and if you solve their problems, they will make you one of them. So when you do with better

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customers because you've raised your prices, you're going to attract better people because the rich

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people are attracted to higher prices. They seek them out like bloodhounds. I actually want to know

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what the most expensive thing is because I know that the business owner who said it up that way

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understands how I want to be treated. Might not have thought about it like that. I literally

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look for the most expensive thing because I just assume it's going to be the best. And most times I'm

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right. Because that's how most businesses that cater to wealthy people operate. They know what the

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rich person is looking for. They want to speed convenience and they wanted to just deliver exactly

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how it is and not think about it again. All right. They don't want to haggle. They just want to

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hear. Get the extra 20%. I don't care. Like I just want to be in an out and I'm done. All right. And

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so what happens is when you deal with richer people, you have way less demanding clients. The

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nice thing is that when they spend money, they're actually emotionally invested. So when you raise

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the price, people get more emotionally invested. On top of that, they perceive the value as higher

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just from the price alone. All right. There's a big experiment they ran where they had three bottles

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of wine, cheap, middle priced expensive. They had people try them out and they had them rank them.

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And people rank them as best was the most expensive, middle was middle, and the cheapest one was

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the worst. Here's what's crazy. The researchers pulled off the covers of the wines and showed them

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that all three wines were the same. And so in a very real way, the price actually increased the

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value of the wine itself. And so when you raise the price, you actually increase the quality of

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your product. On top of that, if you ever have a product or service where you have to get the

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person to do something, which is most products or services, then the higher quality customer you

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attract in a real way, the better, the likely that they will achieve the result. Because more able

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people can afford more. And so you will increase the percentage of people who are happy and can follow

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through because they are more able. And so you have higher success rates because you attracted

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better quality customers. And so if we want to stack the chips in our favor to make big promises,

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deliver on big promises, have clients that aren't a pain in the ass, right? Deliver results as we

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said, we were going to and make more profit along the way. The pathway is up, not down.

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Now, from a business perspective, when you have more profit in the core thing that you have,

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you can reinvest in staying innovative. You can do research and development. You can have beta runs

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and beta products and prototypes. You can do that because you have excess profit. On top of that,

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you can invest in having a superior experience because you have the excess cash to give them white

400
00:33:31.360 --> 00:33:37.920
glove service, right? On top of that, your conviction in what you sell that when you say I'm going to

401
00:33:37.920 --> 00:33:43.920
deliver this thing and you can is strengthened because conviction is where all sales comes from,

402
00:33:43.920 --> 00:33:48.160
right? You have to believe what you say. Most people don't actually believe. And so the thing is

403
00:33:48.160 --> 00:33:55.760
is poor people think if when you close a sale, you think gotcha, you're fucked up because you

404
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actually think that you are ripping off your customers. And so if you, so you need to change that,

405
00:34:02.880 --> 00:34:08.160
like if you don't, if you feel that way, you need to change it because there's two emotions

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that you should feel. One is, oh fuck, now the work starts. And the second is, I'm really glad

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I can help this person. Like, I get it because I've sold when I was poor. Like, I understand when

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you're like, I fucking need to pay bills. I get it. But the thing is, it's like, you have to

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pull yourself out of that to get out of that. Because again, wealthy people can smell that. Like,

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I love this term, commission breath, right? Is that they can smell that the only reason you're trying

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to sell them it for you, not for them. And so when you have the most profit, you can reinvest

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in the experience. You can reinvest in the product. And most importantly, you can reinvest

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in attracting the best talent. Because how do you scale a business? It's not going to be you.

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You're going to have to have a team. And would you rather have a team of people who don't value

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themselves and don't want to make a lot of money? Or do you want to have a team of people who are

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ambitious, who have big dreams for themselves, who want to learn, and they want to learn from

417
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somebody who's making money? And they will ask for more than people who don't value themselves.

418
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But here's what's crazy. The biggest cost-cutting tactic Henry Ford said he did was that he doubled

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his minimum wage compared to everybody else who he competed against. What happened? He was able

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to take all the top talent from everyone else to work for him. And here's one of the secrets

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that you probably don't know, and I'm going to tell you right now, is that A level talent

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costs twice as much as B level talent, but produces five times the output.

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Ten times, a hundred times the output. So much more. And A level talent comes batteries included.

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They come with a map installed, like a Tesla. They know where they're going. They know the route,

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and they already have the motivation to get there. And you just need to get out of their way.

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And you do empower them to do what they need to do. But you can't attract those people if you don't

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have the profits. And so keep trying to lower your price. Keep trying to do best value. Do a little

428
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bit more for a little bit less. You ward off the best customers. You ward off the best talent because

429
00:36:03.600 --> 00:36:08.880
they all know each other. Because oftentimes the best talent are people who value premium products

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and services. And they want to work for a company that they would buy from. And the last one is

431
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a lot of people's prices are a reflection of their value of themselves. And I think there's a big

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thing that we have to separate here is that you can value yourself and understand that you are not

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as good yet. I'm a big believer in what I consider the Chick-fil-A model of pricing, which is it's

434
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either free or it's full price. There are no discounts. And that's why when people are starting out,

435
00:36:35.440 --> 00:36:40.400
I encourage them to do as many free services as they can. There's a lot of value that. One,

436
00:36:40.400 --> 00:36:44.800
is you get a lot of experience. Two, there's lower stakes. Three, you can ask for things in return

437
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that are tangential value. You can get reviews. You can get testimonials. You can get feedback. All of

438
00:36:49.440 --> 00:36:54.640
these things help make you better. And everyone's so they're so short-sighted. Because what happens is

439
00:36:54.640 --> 00:36:58.320
if you're in the beginning and you suck, if you're first five people, you basically rip off because

440
00:36:58.320 --> 00:37:02.240
you're sucking at it and you're trying to learn with them, like your first five customers all don't

441
00:37:02.240 --> 00:37:07.120
like you. Like that's a tough way to start. And your perception of business will be shifted by that.

442
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And so if you have a very different dynamic where you're just giving and you're giving away

443
00:37:10.560 --> 00:37:16.080
stuff for free, you're giving away services for free, right? You will have a very different dynamic

444
00:37:16.080 --> 00:37:20.160
and you will learn how to provide value in a different way. And then what happens is once you get

445
00:37:20.160 --> 00:37:24.800
to a point where people are like, I want more of this and you can't even satisfy the demand,

446
00:37:24.800 --> 00:37:29.600
then you go full price. Because now you've you've gotten the reps in, you know how to over-deliver,

447
00:37:29.600 --> 00:37:33.680
you know what an actually good relationship with a customer feels like because it should feel like

448
00:37:33.680 --> 00:37:37.520
a partnership. It should feel like we're working together on this and it shouldn't feel like master's

449
00:37:37.520 --> 00:37:42.480
life, right? It shouldn't feel like you're pulling the cash out of their, you know, ripping the

450
00:37:42.480 --> 00:37:45.360
cash out of their wallet. Shouldn't feel that way. It should feel like, hey, we're both aligned

451
00:37:45.360 --> 00:37:49.920
here. We're really partners in this in this work together. And when you have that vibe and you have

452
00:37:49.920 --> 00:37:56.560
the track record, you will be able to say no to bad customers and ultimately saved your mindset

453
00:37:56.560 --> 00:37:59.520
and all of your employees from dealing with them too. Because one of the easiest ways to lose

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good talent is sell bad customers.