https://www.youtube.com/watch?v=yEKu6q0W3gs

1 00:00:00.000 --\> 00:01:00.000 everybody's watching this video i'm
about to make you a ton of money in a few minutes i'm gonna walk down
exactly how you can price stuff to get more people to buy really
expensive things that you sell and if you don't sell something really
expensive you're gonna want to by the end of this video right now if you
can write down on a piece of paper what the average price of the thing
that you sell is let's say it's a hundred bucks what i want you to do is
i want you to put 10x i want you to put 50x i would put 100x next to it
now once you write the price of what that would be if your main thing's
100 bucks 10x is a thousand 50x is 5 000. 100x is 10 000. it doesn't
matter what business you have if you want to make lots of money sell
more expensive stuff there's no strategic benefit to being the second
cheapest person in the marketplace but there is for being the most
expensive there's only one strategic benefit to being the lowest cost
person in the marketplace which means that you went in with that
strategy and you built an entire business around operational efficiency
automation and you built the whole strategy of the business on being
able to provide the same thing for less if you did not do that and are
simply trying to do the same business as other people and compete on
price you will lose you will have no profit left over and you will get
price to the point of breakeven and you will just run a

2 00:01:00.000 --\> 00:02:00.000 non-profit thank you that's probably
not why you got into business no matter what you sell you should have
something that's 10 50 100 times more expensive than thing you're
currently selling when i bought my first nice suit for myself a friend
of mine was like fashionable and he like took me to the store or
whatever i put a suit on i remember checking the price tag and it was
thirteen thousand dollars homie didn't have thirteen thousand dollars
and i was like \[ \_\_ \] and then what they did is after i took that
off they put me in a suit that was like twenty nine hundred bucks or
twenty 2 500 and i was like okay i can get with this right i didn't
realize it then but they had completely price anchored me and that was
100 the strategy was get put you in the most expensive suit and then
you're like geez but the thing is is that some guys will look at that
and the right guy will be like done i'm in price anchors have two
benefits and this isn't the only point of the video this is the first
point for everybody who isn't going to buy the really expensive 10x 50x
100x thing you anchor the rest of your pricing against that first price
so you're showing them this thing kind of like ripping off the band-aids
like stretching the length through which they see your pricing if i say
a thousand dollars first and then i say a hundred thousand dollars it's
like \[ \_\_ \] that's

3 00:02:00.000 --\> 00:03:00.000 huge but if i say a thousand dollars
first and then i say a hundred dollars or ten dollars that sounds like
less if you have a pricing menu for a membership for example of any kind
you want to have the most expensive one first not the least expensive
one and then everything else will look cheaper by comparison if you do
it with wine you can do with software you can do with memberships it
works in every situation because it works on psychology now let's talk
about the other side of the equation all right so we've got the anchor
and then we've got other options of pricing so how do we organize the
other two options good question i like to use the small medium large
example to kind of like break this down so you can use this as small
medium large popcorn small medium large cokes whatever but let's say
you've got 10 bucks five bucks and you've got this middle price where
you put this middle price will indicate which product gets sold the most
of a certain percentage people always buy the cheapest thing because
that's who they are and that's fine the next people are influenced by
the pricing in general so if i have a five dollar thing and a ten dollar
thing i can make this medium six bucks so i make my medium a dollar more
than my small and it seems like a great price but the thing is to ever
forget is that we make up all the prices all of

4 00:03:00.000 --\> 00:04:00.000 these are made up so we got 510 and we
got six or 650 or 6.99 and we're gonna get a lot of people are gonna buy
this one now if i bump this to here nine dollars and i make this 10 what
are people going to do a lot of people are gonna buy this one because by
comparison it's like wait just for a dollar more i get twice of the
small well that sounds like a great deal and so fundamentally people
want to buy great deals they don't want to buy cheap stuff think about
the difference there price is what you pay value is what you get the
deal is the discrepancy between the two for example and this is a big
one this is a i want to break this belief for you if right now you sell
expensive stuff five thousand dollar things or ten thousand dollar
things if i were giving you a ferrari brand new and i said it's ten
grand and i'm walking up to people on the street and they believe that i
was actually going to give them the ferrari how hard do you think it
would be for them to come up with 10 grand what would they do they would
call their friends they'd call their family they would take out of their
credit cards they'd take a loan why because they know it's worth more
than 10 grand whenever you are selling something expensive the reason
someone is not buying it is simply because they do not understand the
value because if they understand the value and they

5 00:04:00.000 --\> 00:05:00.000 believe that you're giving them a
ferrari they will find a way to get the money i want to banish this
whole concept of like they can't afford it everyone can afford it if
they believe the value is there and so the idea is not that we're giving
cheap stuff away we want the value relative to the price to be a huge
bargain when you're coming up with the stuff that you're going to sell
the first thing that i want everybody to do 10x 50x100x pick one and
then figure out what you would have to fulfill to make it worth that
they are getting a ferrari for 10 grand and that's how you get people to
say yes over and over again and the other thing is is that it'll start
to teach you that people are willing to spend more when they see the
value the other benefit of having this huge price anchor is that whales
will buy it so a certain percentage of population just like i said
certain percentage population always buys the cheap thing because that's
who they are there's another percentage of the population that always
buys the most expensive thing because that's who they are it doesn't
hurt you at all to have something that's super expensive on your menu
put it there with the expectation that you're never gonna sell and be
surprised when you do if you didn't get a gasp from the price you didn't
go high enough you want that gas because that gap shows that you've
broken the rubber band of pricing that

6 00:05:00.000 --\> 00:06:00.000 they associated with what they expected
your product or service to be priced at and so if you're like oh it's
100 grand they're like whoa i was not expecting that you're like oh no
worries and then you can explain why it's worth it but then it's like
you know what i think we can do 80 of that for 10 because that's our our
silver that make more sense for you yeah that would make a ton of sense
for me now if silver's 10 bronze is 8 and gold is 100 you need to sell a
lot of 10ks because now it seems like nothing it depends on the customer
or segmentation but one of the big mistakes i see people do is that
they'll have like 100 a month 110 a month and 120 a month you want to
meet buying personas so you might have a hundred dollar a month you
might have a 200 a month you might have a thousand dollar a month
because the people and the needs between those customers are different
so you want to price based on the value delivered to a specific avatar
like if i'm selling something to coca-cola it's going to be more
valuable to coca-cola than it is to a local brewery so you can price it
accordingly if you are a cro expert conversion rate optimization and you
can help an e-commerce store buy 10 if the store is making a million
bucks a year 10 is 100 grand if the store is doing 100 million dollars a
year 10 is

7 00:06:00.000 --\> 00:07:00.000 10 million you literally can provide
more value to them because of who they are not because of who you are so
10x 50x100x think about what you provided for each of those levels put
that at the top of your menu be the first thing that you explain to
people expect 1 out of 20 to say yes to it and for everybody else to
feel much more comfortable taking the other options bye
