spiderkiller007
New member
DAY 8: PRICING- LAYER ON VALUE AND CHARGE WHAT YOU WANT.
Backstory: From Zero to $20 million in sales
Day 1- The Industries that Work
Day 2- Choosing Your City and Business Model
Day 3- How To Choose Your Domain
Day 4- Website and elements
Day 5- Logo and focus
Day 6- Copywriting
Day 7- Customer Service
If you’re new here, this is DAY 8 of a 27 DAY series where you peek over my shoulder and learn how to lay out a remote service business just like my company that just hit $20 million in sales.
Again our process for launching companies is the same every single time:
Phase 2 if you will...
So a few words on pricing:
A lot of new entrepreneurs think they should compete on price.
This works in some industries, but I think it's really difficult to sustain in service industries.
We're not selling widgets here.
Instead we’re going to compete on a bunch of other factors while having our price in the general ballpark.
Why we're not shooing to be the lowest priced?
In the client’s mind, the price you charge suggests the quality of service you offer.
I'll say that again: the price you charge suggests the quality of service you offer.
On perception alone, being the lowest priced offering can actually harm you more than it hurts.
Major Key ^
And another thing is this:
Fewer people base buying decisions on price than you would imagine.
Many would rather pay a premium price for peace of mind that comes with doing business with a reputable company.
So as a general rule for pricing I make my decision this way:
So a $200 service would typically break down as $120 to the provider and $80 for us.
Get to 15 of these jobs per day and you’re already a million dollar per year company.
^Doable goal that is attainable in 24-36 months.
At the end of the day though be ready to try different price points, and don't be afraid to raise prices if you think the market can support it.
Your pricing is like the constitution, it’s a living breathing document, so don’t get obsessed with getting it perfect at the start.
And here's another little takeaway:
Employ as many value-added items as possible and you give yourself more pricing flexibility (i.e you can price more)
If you position your offering as a premium service with enough value-added components for the client, you can charge damn near whatever you please.
Just be ready to adjust to what's happening and don't try to hang on to a price that isn't working.
At the end of the day the pricing decisions are in your hands and if you position yourself well, those decisions are largely independent of what the competition is doing.
Sweet, hope you enjoyed this.
Tomorrow, we’re going to set up pricing in our booking system and show you how that works.
One step closer to getting P.A.I.D!!!
Final thing:
You can hit me at rohangilkes.com or let me know if I can help with any of this. My Dms on here are diabolical!
Whenever you're ready, there are 5 ways I can help you:
1. Sweaty Startup Operating System: Join 2,000+ students in my flagship course: Learn to build a lean, profitable, local service business. This is the system I used to quit my job and grow from zero to $20 million in sales and has generated over $1 billion in sales for our community. Get 10 years of online business expertise, proven methods, and actionable strategies across in-depth lessons and includes live WEEKLY calls.
2. Live 27 Day Bootcamp: Join 30 other entrepreneurs every month in a live DAILY class as we walk you through how to build a business in real time. At the end of 27 days you're ready for launch. Build a profitable real-world business live. This comprehensive program will teach you the system I used to grow from 0 to 100K+ customers, be invited to the White House and earn $20M+ in sales.
3. https://www.justinwelsh.me/content-osBook a Call With Rohan: As an entrepreneur with over $20 million in online sales I've seen pretty much everything. I've built services companies, software companies (had 2 exits), subscription box companies, and more. Join me for a chat.
4. Join My Email List here for my weekly newsletter
#1 - DM me on instagram: www.instagram.com/rohangilkes
Facebook group: https://www.facebook.com/groups/remotecleaning
My Twitter threads: https://rohansthreads.co/
Day 9:
Backstory: From Zero to $20 million in sales
Day 1- The Industries that Work
Day 2- Choosing Your City and Business Model
Day 3- How To Choose Your Domain
Day 4- Website and elements
Day 5- Logo and focus
Day 6- Copywriting
Day 7- Customer Service
If you’re new here, this is DAY 8 of a 27 DAY series where you peek over my shoulder and learn how to lay out a remote service business just like my company that just hit $20 million in sales.
Again our process for launching companies is the same every single time:
- Create a dope looking brand
- Set up ways for customers to pay us
- Drive as much traffic as we can muster.
Phase 2 if you will...
So a few words on pricing:
A lot of new entrepreneurs think they should compete on price.
This works in some industries, but I think it's really difficult to sustain in service industries.
We're not selling widgets here.
Instead we’re going to compete on a bunch of other factors while having our price in the general ballpark.
Why we're not shooing to be the lowest priced?
In the client’s mind, the price you charge suggests the quality of service you offer.
I'll say that again: the price you charge suggests the quality of service you offer.
On perception alone, being the lowest priced offering can actually harm you more than it hurts.
Major Key ^
And another thing is this:
Fewer people base buying decisions on price than you would imagine.
Many would rather pay a premium price for peace of mind that comes with doing business with a reputable company.
So as a general rule for pricing I make my decision this way:
- Figure out how much I needed to make per transaction (x)
- Find out how much the teams need to make
- Create value that in the client's mind justifies a price of (x+y).
So a $200 service would typically break down as $120 to the provider and $80 for us.
Get to 15 of these jobs per day and you’re already a million dollar per year company.
^Doable goal that is attainable in 24-36 months.
At the end of the day though be ready to try different price points, and don't be afraid to raise prices if you think the market can support it.
Your pricing is like the constitution, it’s a living breathing document, so don’t get obsessed with getting it perfect at the start.
And here's another little takeaway:
Employ as many value-added items as possible and you give yourself more pricing flexibility (i.e you can price more)
- Money Back Guarantees
- On time Service
- Credit card processing
- Online Chat
- Booking by Text message
- Online booking with real time scheduling
- Organic/green cleaning
- And just plain old premium branding, convenience, and peace of mind.
If you position your offering as a premium service with enough value-added components for the client, you can charge damn near whatever you please.
Just be ready to adjust to what's happening and don't try to hang on to a price that isn't working.
At the end of the day the pricing decisions are in your hands and if you position yourself well, those decisions are largely independent of what the competition is doing.
Sweet, hope you enjoyed this.
Tomorrow, we’re going to set up pricing in our booking system and show you how that works.
One step closer to getting P.A.I.D!!!
Final thing:
You can hit me at rohangilkes.com or let me know if I can help with any of this. My Dms on here are diabolical!
Whenever you're ready, there are 5 ways I can help you:
1. Sweaty Startup Operating System: Join 2,000+ students in my flagship course: Learn to build a lean, profitable, local service business. This is the system I used to quit my job and grow from zero to $20 million in sales and has generated over $1 billion in sales for our community. Get 10 years of online business expertise, proven methods, and actionable strategies across in-depth lessons and includes live WEEKLY calls.
2. Live 27 Day Bootcamp: Join 30 other entrepreneurs every month in a live DAILY class as we walk you through how to build a business in real time. At the end of 27 days you're ready for launch. Build a profitable real-world business live. This comprehensive program will teach you the system I used to grow from 0 to 100K+ customers, be invited to the White House and earn $20M+ in sales.
3. https://www.justinwelsh.me/content-osBook a Call With Rohan: As an entrepreneur with over $20 million in online sales I've seen pretty much everything. I've built services companies, software companies (had 2 exits), subscription box companies, and more. Join me for a chat.
4. Join My Email List here for my weekly newsletter
- The software we use to run your sweaty startup: Booking form, your website, hosting, domain, credit integration, email templates, the whole shebang.
#1 - DM me on instagram: www.instagram.com/rohangilkes
Facebook group: https://www.facebook.com/groups/remotecleaning
My Twitter threads: https://rohansthreads.co/
Day 9: