– Hi guys, I wanted to mention something that has been really
itching my brain lately. And that is, why people discount
what they charge, right. So I’ve done videos before
where I’ve talked about you are what you’re worth. And if you want to be,
considered a millionaire you have to value your
time at $500 an hour. However, people continuously, when they get up against people
who want to cut commissions or challenge you on prices,
they’re like, oh fine, and they drop the price. So the question is, why do people do that. And usually it’s because
they haven’t connected with the value of what
they offer to these people. And so here’s an example. Let’s say for instance you
charge a commission of 5%, I’ll use a real estate example because I was talking to someone
about this just last week. So you charge 5%. Sometimes people will
be like, well you know, that’s a lot on say,
a million dollar home, it’s a lot of money so I’ll
just cut my commission. And the reason why you
should never do that is because you’re worth
every percentage of that 5% because the value of what
you provide to those people is worth that much money. So what usually happens is people go well I do this, this, this,
this, this, and this and that’s why I’m worth 5%. But here’s how you should calculate it. How you should calculate it is, you’re gonna make sure that
the people that you are, say, in this case, helping
to either sell or buy a home, are going to be x hundreds
of thousands of dollars ahead of the game because
you’re gonna help them make a good financial decision. So sure, you’re commission may be $20,000, but because they bought a
home in the right neighborhood for all the right reasons
at the best price possible, in a couple of years they
will have made $100,000 because the home maybe would’ve
appreciated by that much. So when you look at it
from that perspective, what you offer is just a list of features, but it is an opportunity
for people to live better and to make more money because
of what you’ve provided. So let’s say for instance
we take my high-performance coaching program, so it
doesn’t have a small price tag, $6,000 however, if you
follow what I teach, you develop the high-performance habits, and you create that into your
life day after day after day and you consistently apply
it, you’ll make $600,000. Now when you look at it
from that perspective, 6,000 in an investment for
600, even a $60,000 outcome, makes it a lot more worthwhile, right. So don’t ever, ever,
ever nuke your prices, don’t ever discount what you offer. Instead look at, what is the value that people are gonna get. So you charge $6,000,
but what is the outcome if they follow you instructions,
do what you wanna do, whether you’re a consultant, a coach, or you offer a product or service, right. What is the outcome and what is the value of that outcome to them? And hopefully that should
be, at least 10 times what you charge, and in
that case, you look like a pretty good investment
and everyone’s gonna like, throw their credit cards at you. So if you’re looking at your
pricing strategy right now and you find yourself
consistently discounting yourself, well, I know I charge 6,000 but I’ll give it to you
for five, stop doing that. Instead, start making a list
of all the different ways that people benefit from you. And again if you do something
like coaching or consulting or real estate or whatever,
like a relationship business, financial advisory, insurance, it works for pretty well any industry. There is a way for you
to stand up, stand tall, and say I am worth this because
you’re gonna invest this in me and this is what you’re going to get because I do a really damn good job. Okay, so, if you’re listening to this, chances are, you do a damn good job. You care enough to listen three minutes and 45 seconds into a video and I want you to make sure that the next
time someone challenges you on your price, that challenges
you on your commission, that you stand tall and you say nope, I’m worth this much but let me tell you what you’re gonna get out of it because you invested with me. A hope you guys found this helpful, have a happy Monday and
I’ll see you guys soon.