Focusing solely on price can lower the value you receive, cost you money, and harm your business. As a business owner pricing your services, you do not want to be on the low-end of the available prices.
In this episode of the Build Your Business podcast, Matt and Chris Reynolds dive into why focusing solely on price can ultimately harm your business. They illustrate how prioritizing value over cost leads to better outcomes, using examples of hiring experts versus cheaper options and how paying for experience can save both time and money. As a business owner, it's essential to avoid competing on low prices, as it leads to a race to the bottom. Instead, they emphasize valuing your time, delivering exceptional value to customers, and working with companies that bring true expertise. Excellence, not cheap rates, drives long-term business success.
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Barbell Logic Links
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Matt's Links
Website: https://ryanmattreynolds.com/
Instagram: https://www.instagram.com/reynoldsstrong/?hl=en
Chris's Links
LinkedIn: https://www.linkedin.com/in/chrismreynolds/
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TIMESTAMPS:
00:00:00 - Intro to Build Your Business Podcast
00:00:28 - Purpose of the Podcast and Hosts' Experience
00:02:00 - Value vs Cost in Professional Services
00:05:10 - Expertise and the True Cost of Inexperience
00:09:48 - Investing in Quality Services and Long-Term Value
00:12:12 - Mispricing and the Market's Correction
00:16:57 - Professional Services and Cost Efficiency
00:21:35 - Online Coaching and Efficiency in Business Models
00:26:19 - Transitioning from Personal Training to Online Coaching
00:31:03 - Efficiency and Increasing Hourly Income
00:33:23 - Scaling and Empire Building Opportunities
00:35:39 - Differentiation in Pricing Strategy
00:38:02 - Outro and Contact Information
#BusinessGrowth #CoachingTips #ClientSuccess
Show Notes (Streaming Platforms)
Focusing solely on price can lower the value you receive, cost you money, and harm your business. As a business owner pricing your services, you do not want to be on the low-end of the available prices.
Focus on Value Delivered not Price: Value Equation
Chris offers a simple example of why only looking at hourly rate makes no sense.
Someone hired a business to perform a task, and that business offered a low hourly rate. After 150 hours, they had failed to complete the task.
To fix this, they went to a different business with a higher hourly rate. That new business was unable to use the work the earlier business had performed, but after 30 hours they had completed the task.
The "more expensive" solution ended up costing less, both in terms of time and money.
Focus on Value Delivered not Price: Value Your Time
With the example above, not only could the business have paid less if they had not only looked at the hourly rate, but they could have solved their problem much earlier, letting them make more money sooner.
You cannot save money by attempting to learn everything a lawyer learned at law school and in his years of experience to serve as your own attorney. This is really true of any professional service you hire.
Value your time, and focus on delivering value to your customers (and growing your business) as opposed to trying to spend time on what other professionals can do better than you.
Focus on Value Delivered not Price: Fly From the Low Price Game
As a business owner, you do not want to have to offer low prices. Why?
Because you will ultimately have your services judged on price, and this means a race to the bottom.
You want to pursue customers who are looking at your value and expertise.
You similarly want to seek out companies that offer great value to your business.
Focus on Value Delivered not Price: Excellent Value Means High Price
This means, of course, that you must pursue excellence. You must become excellent at what you do. You must seek and use companies that deliver great value.
Of course, you should want to do this.
Early on, you may offer lower prices, as you learn your craft and build credibility.
Your prices should increase as you do this.
Focus on the total value delivered not price.
