TRANSCRIPT

Happy Spider Brain Episode 5: 

I'm Camille Lindquist, and this is Happy Spider Range, the podcast for business owners who are serious about working less and becoming insanely profitable through the power of unlimited thinking. I'm Camille Lindquist, and this is happy Spider Brain. Episode number five charging premium prices. How are you guys? Are you thriving? Is your business happy? Notice how I switched those two sentences. You can thrive and your business congee happy. Do you want another easiest way to make that happen? Charge premium prices. Whatever premium means in your industry, you need to just do it. Be the most expensive you guys offer the very best experience. Don't do anything in your business halfway. This mindset is a specially relevant to people who run a one on one service based business. Where you're selling service is either with or without products to your customers. But it can also be relevant to those who sell just products in a store or shop. For both of these types of businesses, being the most expensive is awesome. I cannot think of a single small business, your eyes that wouldn't benefit from upgrading their business toe. One focused on a luxury experience, not one Do you have a hard time believing me? Here's my number. One reason why I think you need to become the most expensive in your industry, at least in your area. Say, I set the goal to make $60,000 a year. I chose this number because it's a solid income that you can raise a family on. It may seem higher loader you, depending on your circumstances in your life experiences, but that's not important right now. I just set that number because it's a good average income. If I charge, say, $300 for all digital files for a full family session. I know that's a lot more than some of you are charging, but just watch and see after taking out 30% of the profits. So $100 for self employment and other taxes that you'll need to pay at the end of the year and then saving about 10% for business expenses. You would need to bring in $88,000 a year in actual cash flow to take home that $60,000. Do you know how many $300 sessions you would need to photograph to make just $60,000 a year. 293. You guys, that's crazy. Nobody wants to photograph 293 clients a year. If you're charging $100 a session instead of 300 that's 879 photography sessions for $60,000. That is atrocious. Nobody wants to photograph 879 sessions. Nobody wants to photograph 293 sessions. If you do, if you're sitting here going off, that's a sound horrible. We just can't be friends. And you need to get off this training because if your goal is to be busy, this is not the class for you. You need to exit this training now because you're never going to be satisfied with your tiny little income again. After you see this next example, the key to making a really income with photography is to charge properly. With my average of $3000 to $5000 per client, I only need a maximum of 29 clients to make $60,000 a year now. I do set my goals higher than that, so I photograph a bit more than 29 But for the purpose of this math experiment, you can see that it's a huge difference. 293 or 29 879 or 29. This is an extra secret. How I only work about 10 hours a week is by only taking on four clients maximum a month. Just repeat to yourself. It doesn't matter what anyone else charges. Stop worrying about the other photographers. In fact, when I moved to Texas for a year, I didn't research other photographers to see who my competition waas. I researched to make sure I was priced higher and offered a better experience than the other photographers. Because that's how I stand out. I stay away from the pack Now. I know that this method, this example that I showed you was very specific to photography. Your pricing may look totally different. You might so a lot of one thing that is smaller priced, but you need to figure out what high end means to your specific market. There's also a specific method I used to make the experience that I offer line up with how much I charge, and it's so important that it takes up an entire month of my photography business course, and it also seems to penetrate every other month as well in certain ways, because the experience that your client has is everything to your client. It's natural and tempting to think that lower prices will attract more clients, offer better value for your customers and make your buyer's happy. But what if you were actually doing your client's a disservice by not charging what you're truly worth as a business coach, I advise my clients every day on the best way to position themselves and package. Their service is to provide a maximum value to both themselves and their clients. And I found that dramatically raising your prices could be advantageous for everyone involved. Business coach Dan Kennedy says being the second lowest price has no advantages. If you're not the lowest cost provider in your market, you might want to consider being the highest if my pricing formula example didn't convince you to charge more, here are a few more reasons why raising your prices is actually a brilliant move. Number one. Higher prices attract better clients, clients who only want to buy from you or Book of photography session with you because you are the lowest cost provider will treat you with such these bottom of the barrel clients will expect way too much from you. Blame all of their problems on you and leave you for a competitors in a heartbeat. They are not loyal. For the most part, they only use you because you're within budget. Ramit Sethi, an online business expert, says. In our experience, business is the most fun and most profitable when you focus on helping great people get better, switched to premium prices and position yourself as the best at what you do, because then you'll attract clients who value your unique offering. These types of clients take responsibility for themselves and are more likely to stay loyal instead of leaving for the lowest cost option. The moment it appears in the end, they're easier to work with, easier to satisfy and they pay a lot more. They know and live by the old saying. You get what you pay for and they're willing to invest in quality and doing things right instead of looking for the lowest price. All right, guys, number to your clients will value what you have to offer when you raise your prices when you are begging to work with your clients by posting endless sales and screaming book book book me, you show that you're willing to do anything to get that sale. This is bad, you guys, because you show them you're willing to lower your prices. This puts them in control of the relationship between you, and as a result, you'll be treated like an employee or worse, rather than the trusted expert that you are or that you want to position yourself as charge. Premium prices offer specific and define service's and showing unwillingness toe Budge on what you're worth on Lee. Then will you be treated as a respected authority in your market? Create some exclusivity to put your price is out of reach to the lower and customers I know it's really scary, but by doing so, you actually shift how your customers view you In their mind. You get to dictate the terms of the arrangement, and you decide exactly what value you provide. Instead of doing anything that client asks because you're so desperate for money, this leaves you a lot less scattered, a lot more focused and your client will treat you with respect. They'll treat you like a real business one they're really honored to be a part of. All right guys. Number three is that your clients will get better results when you raise your prices. When you charge higher prices, your clans will be more invested in getting results. If you sell training or education, charging low prices will cause your clients to give up at the first sign of resistance, difficulty or struggle because they didn't lose a whole lot by investing in you. But when your client pays $5000 to work with you, they're much more likely to stick with the process long enough to get results, even if that means trying and failing a few times before getting it right. They invested that money and they want her in that money back so they're going to work harder. It's the same thing with the photography client. When they pay $100 for the digital files from a photography session, they'll post them on Facebook and Instagram. But those images will get printed less than 10% of the time when they pay $5000 for a framed canvas art piece. It earns a permanent place in their home and on their walls that they will cherish forever. It's not gonna be thrown in a box or something. Okay, if you have a low success rate with your clients and you don't think it's your product or your process, try raising your prices. Reason Number four is that you can offer better support. If you want to make $100,000 you can do it by selling a $100 product to 1000 people or by selling a $10,000 product to 10 people. The first way isn't going to allow you to form a real relationship or provide quality support to your customers. You can't possibly address each client's unique needs to make sure they get the result they paid for because you only charged him 100 bucks and you've got 1000 clients. When you're charging $5000.3000 dollars, $10,000 for something, you're going to be more willing to give your all to supporting that client, and you'll have. The resource is to do so. I can go the extra mile for my clients because I can afford it. I've gotten paid a lot of money, and because of that I can gift them, say something like a beautiful box of chocolates or a gorgeous floral arrangement. When I deliver their images, it's part of the experience that I offer is they get to feel a little spoiled. It's not costing me anything, cause I charged them a lot for the experience. When I got hired to photograph a wedding in France, I was booked for a total of 10 hours. I got paid a lot of money to go and it was a three day wedding. But in the end, I I added up the hours and I had ended up photographing about 13 or 14 hours. I didn't send them a bill and say, Hey, I actually worked 14 hours, so you owe me for four more hours. That wasn't the point. I felt totally fine about those extra hours I put in because I chose to do it. The hours were the least of my worries. I'd been paid very well and I didn't feel stingy with my time. Instead, I wanted to give them a more complete vision of their day and that meant I stuck around for a few more things. I don't usually give my clients more hours of our products, but in this case it made sense to give a more complete experience to sum up this week, I want to issue you a challenge. Do some market research not just so you can link. Worry about your competition, but to see where you fall in the price range for what you have to offer. If you're in the bottom 70% you're too low. In reality, though, I highly recommend being in the top 1% or even better, find the highest price person you can and be 10% more than them. That's the best way to make sure you're the top. Charging premium prices is not only better for you, but it's better for your clients. I've just opened up a few spots in my business course for photographers, So if you have any questions about it, please shoot me. An email at Camille at Upper did life dot com or visit my website at upward life dot com. Have an amazing week and I'll see you next time