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What's up everybody, hope you guys have an amazing week so far and today when it's actually about the virtuous vicious cycle of pricing

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Result service and profit so I'm sure if you've been hanging around this area community

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This little nook of the internet our little world of gym launch you'll have encountered a lot of gym understand that they're making more money

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And they've got more customers and they're charging more money for all of them and you're like how does this even make sense and?

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And it's because a lot of things in business are counter-intuitive and I think pricing is also one of them

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And so I wanted to kind of go over some of the things that I've learned that really helped me shift the way I saw pricing

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And really how I

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Ethically came to the conclusion or came to the ethical conclusion that spending charging more was really

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It's a win win for everyone not it's not a like it's not a zero-sum game in business like

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It's a win win for everyone. So let me explain

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So here's the here's the typical picture right as prices go down

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So unless people are like I want to help more people and so I'm gonna lower my prices because I want to make more of an impact

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But the reality is that when you do that you just hurt everyone and here's how so from the client side the emotional investment

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Goes down so they're paying less to the care less right the perceived value also goes down

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So even if you gave them the same thing you give them two bottles of one one time to charge ten dollars and another time

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You charge a thousand dollars the perceived value goes down

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There's tons of studies to support this and that should already make sense to you intrinsically right now because the perceived value goes down

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The results go down because they don't think the about the information says valuable

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They don't think your workouts are as valuable that your gym in general is as valuable and so they don't try as hard because

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They just don't value this much right and ironically and this is what's kind of interesting and

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This is something that I can only tell you off of everybody who's

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That you know that we've worked with and anyone who does a low ticket or high ticket can can

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Support it's that the demandiness of these customers actually go up

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So as you decrease your prices you get people who will ask you to come to their house rub their back rub their feet for $50 a month

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It's insane

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But it's because the people that you attract at that level of quality have different views around money

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And at the same time like they just try and get as much out of everyone as they can and that's the reason that they are where they are in life

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Right they take take take instead of give give give right and the risk like the richest people in the world

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The ones who give the most the people who are the poorest are the ones who always try and take right and so it should make sense that those are

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After understanding that it should make sense that

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When you're decreasing your prices you actually get the worst customers too

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And then this also compounds because

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Sometimes they're a little bit in the right that they get you they get less service per customer right because now

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There's more of them and you're making less money on them right so your margin goes down the amount of them that you have go up

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And so the amount of service per customer goes down so

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They care less they value it less their results go down they ask for more and you are able to give them less because there's less money left over

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All right, so that's the vicious cycle around price for your customers

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Now as the prices go down from you as a business your profits go down your perceived value of self go down like for me

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Like we I love having a high-priced service because I

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I value I value what we do a lot and I want other people to value that right and

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If you're just selling you know cheap cheap cheap cheap stuff

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You just start to think that you're cheap right like you start to think that you don't really provide as much values you really do right

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Next thing is that your results go down. Okay. Now you stop getting testimonials stop getting feedback

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Okay, and this is kind of like this is also self like self-battery right like you

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You value yourself less because you're cheaper and now no one's getting results and then all these people

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Are demanding more of you and the service goes down because you can't afford to give them as much because the price price on your service team

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Side you have to cut people you have to decrease how much you can pay and hey you can only be on the phone for five minutes

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You can't give them full service because you got so many other customers. See you. I'm going with it

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Real quick guys if you can think about how you found this podcast somebody probably tweeted it told you about it

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Share it on Instagram or something like that the only way this grows is through word of mouth

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And so I don't run ads. I don't do sponsorships. I don't sell anything

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My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast that you do the exact same thing

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So if it was a review if it was a post if you do that

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Who mean the world to me and you'll throw some good karma out there for another entrepreneur?

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And then the last piece and this someone people don't talk about is that your sales team has integrity issues

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So all of a sudden they feel like they're lying when they're promising something that they know that they can't that you as a business can't fulfill and

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It's it sucks. It's not cool

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Because they have to sell the dream because anytime you're in sales you have to you have to sell a cure

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Like you can't sell them maybe like people buy conviction right and so the sales teams trying to feed his family

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Right, he's going to be start to be making promises

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That on some level he knows that the business can't fulfill and when that happens then they start to struggle with integrity issues

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And they start to get all out of whack and

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You start wondering what's going on right and if you're the person doing the sales for your business then sometimes that's you

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Because now you feel like you're promising something that you know you can't deliver and we as fitness people are

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Ethical people we want to help people but at the same time like

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Like we want to help other people

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But totally lost my train of thought so I'm just gonna move on

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Okay, so as prices go up. Okay, here's the virtuous cycle instead of the vicious cycle

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So as the prices go up emotional investment goes up proceed value goes up

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Imagine if click funnel for $5,000 a month everyone would be like oh my god

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This is the latest free is most amazing software of all time, right?

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That's what they would think because the perceived value of going up even though the software hadn't changed, right?

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And what happens now everyone if it's spent $5,000 a month on click follows everyone learns how to do it

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So everyone builds all these funnels because they are more invested, right now

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This is what's ironic though as you build more clients ironically become less demanding and it's because you're tracking different types of customers

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Which is interesting. It's always that's that one's always faster than it

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And now that the prices went up we fewer customers. They're less demanding

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And if they ever do ask for anything we have so much service to give them they're blown away and they're the right types of customers

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And then they tell their friends who are other right types of customers they come and I'm only telling this because I've lived this

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I've lived both sides of this and I'm telling you this side is way better

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So do this side and then from a from a business standpoint

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Oops, that's just say when your prices go

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There we are your profits go up to now you're making more money the perceived value of self goes up because you're like

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You know what I'm worth what I'm charging right your results go up now you're getting tons of testimonials everyone says that your stuff is amazing

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Everyone says your service is amazing right

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Demanding this goes down because these people are better service goes up because now you can afford to give them the best

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So your service team feels like they don't feel overwhelmed. They're not stressed out

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They're not like I have to get off the phone for five minutes because I have to keep my call volume up

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Just work that way you can be like hey create a little grave someone walks into the problem

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If it takes you two hours take it two hours to get the problem fixed right so now they feel like they're really helping people

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Not just like putting fires out but actually helping people and providing service because you can afford to do it because there's margin left over

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And there's fewer people and the people that are there are better and they perceive the value better and the results go up

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And see how the virtual cycle continues right and now your inflow increases because the sales team has more testimonials to work off

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And they've conviction that that they can promise something that they know that you will fulfill it because I don't care what you say

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Conviction is what sales people and unless and it's really hard for people who are moral individuals which most people I think are

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Especially sales people are this people is like most people think that people are trying to take advantage of them

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Most sales people want to do right by people no one wants to sell products that they don't believe in and so if they actually like

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Sales people get super excited when they have a product that really works because then they can push it so much harder like

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That's that's really what it is is like they have that conviction and now they can actually push it the way they would love to be able to push products

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So um I hope this is valuable for you

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I hope if you're like on the edge of like should I increase my prices like

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Do it like almost every time like if you were in our group if you were in our pay group you know like

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Virtually a hundred percent of time I say you should probably like raise your prices and usually buy a significant march

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Not like oh, I have two memberships one's a hundred and one's a hundred and twenty like that's not a product like that's irrelevant right like those are basically the same buying decision

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So there's like you might as well just have everyone at 120 but if you're gonna do it at 120 the same buying decision will be like 167

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It's the same buying decision. So

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Anyways, hope that was valuable

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drop a comment if that resonated with you lots of love and I hope that you guys

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You