James: James Schramko here from SuperFastBusiness.com. Over there, we’ve got Ron Reich from RonReich.com. Good day, Ron.
Ron: Great to be here, as always, James. I’m excited to dive in.
James: I get asked to help people grow their business a lot as you do. There’s a number of tools in my toolkit. But there’s one tool that is pretty easy to deploy that is most often overlooked by owners, especially because of mindset challenges or maybe they’re just out of reference with the market. But today, we’re going to talk about that one tool in the toolkit, that if you’re listening to this, and you have a business and you’re already selling anything, you can probably use this immediately to increase your profits, what you think about that?
Ron: Absolutely. And the thing that we’re talking about is raising your prices. It literally is the fastest way to grow a business, because it is the only thing you can do to grow a business that you can really do instantly. You can just decide to raise your prices. And if you have the proper mindset when it comes to raising those prices, you are going to make more money tomorrow than you did yesterday.
It really, really is that simple.
James: Yeah. And you’re probably listening to this thinking “Well, I’m uncomfortable increasing my prices.” What are some of the things we can do to get comfortable around this, aside from the fact if someone knows they’ve got a crap product, which if you do, go and fix your product?
Ron: Get a better product.
James: Everything we’re talking about here is assuming that you can actually deliver on your promises. So, presuming you can do that and presuming that not every single person you’re dealing with is screaming to you about how expensive you are, then you’ve probably got some elasticity in your price.
But how do we get more comfortable around charging higher price?
Ron: So one way to do it is spend time thinking about, what is the actual ROI of your offer? I mean, this is really easy. Of course, if you’re working with business owners, and you’re working entrepreneurs, here’s a good thing to think about: if somebody joins your program or signs up for your services, and if they implement everything you tell them to do, like a robot, for as long as your program lasts, for six months, a year, or however long it is, if they do that, what kind of results would they get? That’s one thing to think about, is that kind of immediate ROI.
But then another thing you want to be thinking about is, what is going to be the long-term ROI of them actually taking what you use for them? Don’t just think about, like, the next six months, think about the next year, two years, three years. So for example, like, you know, I help as you do, we help entrepreneurs go from six to seven figures. And typically that process, it might take anywhere from, you know, one, two, three years or however long it takes. But then this person is going to have a seven-figure business for years to come. Like, how valuable is that? Like, even if they were to pay you, pay us, you know, 50, $100,000.
James: Well it’s worth $10 million over the next 10 years.
Ron: Absolutely, absolutely. For sure. So it’s most people just don’t think long enough timelines when it comes to the ROI they’re getting in their offer.
James: That might be one of our next videos. Thanks, Ron.
Ron: Absolutely. Great stuff.
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