How To Price Your Offer

How to Price Your Offer

Why Pricing is Key in Making a Profit in Your Business

BUSINESS CASE STUDY FROM AN 8 & 12 YEAR OLD:

They put on their Bears jerseys and had a plan to sell snow cones at their brother’s baseball game.

I asked them how much they were planning to sell the snow cones for…

Their pricing decision was BOLD but it made EVERY bit of difference.

Initially, Natalie said they would charge $.50 for a snow cone.

Rocco agreed.

Then we did some math.

We tallied up their expenses. Most of their expenses were sunk costs i.e. we own the table, snow cone machine, power cords, and even had a bag of ice. But they needed a few more flavors.

Their COGS (cost of goods sold) was $9.50.

When I asked the kids how many they thought they could sell, they thought MAYBE 10…

Then I showed them how 10 x $.50 would mean GROSS sales of $5.00….and NO money in their pocket after 2 hours or more of hard work.

Natalie didn’t like that too much.
Rocco pointed out that NEXT time though, they would have left over syrup and ice and their COGS would be ZERO…

Natalie still didn’t like working for nothing TODAY.

I asked why not charge MORE.

They said how much?

I said how much would YOU pay for a snow cone on a hot day when there’s NOTHING else around and you’re stuck at a baseball game?

He said, $2 or $3…. 

We all agreed $3 might be a tough ask…not impossible but for their first run, a stretch. They needed to build confidence.

They settled on $2.

Their mother thought $2 was HIGH. MY mother thought $2 was high.

But the MARKET spoke loud and clear.

They had a tough time with their location.
No one could see them…

So Rocco walked the crowd and SOLD directly to the people.
Natalie locked down ops/customer service.

They sold 9 Snow Cones.
No one balked at the price.

They closed up shop a little early and chilled for the remaining half hour of the game.

9 x $2 = $18 gross

had they charged $.50 they would have grossed $4.50
had they charged $1 they would have grossed $9.00

Pricing was the KEY to PROFITABILITY 

Imagine what they can do when they’re location is in the middle of the ACTION and they get their system DOWN.

The race to the bottom (in pricing) is usually the RACE TO BANKRUPTCY…

Consider RAISING your prices, INCREASING value, and being efficient over lowering your prices to compete with “everyone else”.

Thanks Natalie & Rocco for an AWESOME effort and wonderful lesson!

I’m Matt Dubiel and I approved this message.

How to Double Your Revenue

How to Double Your Revenue

How Mattress Firm can double your sales/income this year:

 
matt dubiel double your revenue mattress firmThese are just a few of the MATTRESS FIRMS in the area.
Have you noticed sometimes there’s a mattress firm across the street from ANOTHER mattress firm?
 
There’s a reason for this. Some have rumored it’s because they launder money or something weird like that.
 
The truth is, sometimes people come up with kooky stories like that to explain away success they don’t understand.
 

Here’s why Mattress Firm is seemingly everywhere.

 
#1 The offer something every person needs. Everybody sleeps so they need to be available to everyone.
 
#2 Mattresses are not cheap. It’s somewhat of a high ticket investment. They do not need to sell that many mattresses to make enough to pay for more locations, overhead, advertising, and leave room for profit.
 
#3 Mattress Firm ADVERTISES constantly. They know they need to stay top of mind so when you finally decide to plunk down the big $$$ for that mattress THEY are the ones you think of, they are the ones you call, and they are the place you visit. And just incase you try to go somewhere else, you MAY have to drive past a mattress firm to get to the other guys.
 
#4 Mattress Firm has SOLID messaging. They know what to say to get you to think of them and buy. In fact, they know what to say to the majority of us who think we don’t need a mattress. Their messaging is “experts say you need to replace your mattress every 10 years”. Who says? Mattress firm says…and then they pay other people to say it. Then YOU hear it, and you say it to other people to.
#5 Mattress Firm is now committed to advertising. They threw their hat over the fence so to speak. Now that they have so many locations, they MUST advertise otherwise the whole thing comes tumbling down. Since advertising costs money, they MUST have solid messaging to recoup their investment.
#6 Mattress Firm has to be certain about their sales process. Since they’re pot committed to the process of lead generation via advertising, they MUST be sure their sales team is trained to handle the traffic and demands of the prospective customers.
It all started with a decision.
Mattress Firm decided: We are in the business of selling mattresses, so we need to tell everyone we can Mattress Firm is the place. We need to seed future customers with the idea that they should replace their mattress every 10 years. We need to be a leader in this marketplace.
What’s your decision?
Did you decide to wait for customers to come to you, by the luck of the draw?
If you decide you want to go after your future business and make things happen – I have a million dollar idea waiting for you.

PATRICK SWAYZE MADE ME DO IT + TIME MANAGEMENT

PATRICK SWAYZE MADE ME DO IT + TIME MANAGEMENT

Matt how come you NEVER answer the phone!?

SIMPLE: People WILL waste your time if you allow them to. It’s not their fault, it’s your choice…IF you allow it.

I speak to “prospective clients” by phone…and I usually have to “kiss 30-40 frogs” to find that one prince/princess client I choose to work with (I’m sort of picky because it takes a special kind of person to truly be able to do what I teach).

In fact, for the past 2 years, MOST of these “calls” result in the person (who admittedly NEEDS help and guidance for their business) not even showing up to the call – or worse showing up LATE…

I know how to solve this. I just put it off because I wanted to “be nice”.

See, as a personal rule I subscribe to the “Dalton – Roadhouse Philosophy”:

#1 Be Nice.

Except I forgot about the second part of the “Dalton – Roadhouse Philosophy”:

#1 Be Nice

#2 Be Nice, until it’s time to NOT be nice.

(see the footage here https://www.youtube.com/watch?v=nTh5JzRziHE if this is not in your lexicon)

Now hold on there – I’m not saying I am gonna be MEAN or anything…

But when it comes to MY time, from now on I am implementing the FIX I knew I needed to put in place all along.

I’m sharing because this MIGHT serve you and your business…even though it’s more likely you will *think your business is different.

I assure you, every business has their version of this to implement – IF you’re experiencing the epidemic of TIME WASTERS.

Here it is:
Booking a call with me (for business) now requires a non-refundable deposit.

But MATT, this is foolish!! You will alienate potential clients.

No I won’t. I will however alienate TIRE KICKERS, NO SHOWS, LATE SHOWS, people who are not serious and people who do not value MY time.

I have clients doing this with GREAT success – at MY suggestion. But I didn’t eat my own dog food. Shame on me.

The deposit guarantee I WILL provide is simple: If you make the call, and LOVE it (you will) that deposit will be a credit toward working with me.

If for some reason, you make the call and at the end YOU TRULY believe it didn’t help you and was not worth it….I’ll refund you in full.

No risk.

WHAT ABOUT PERSONAL CALLS?

When it comes to personal calls it’s a different story of course.

But realize, we got our phones for US….not “them”.

I make MY rules. YOU make yours.

If you let THEM make YOUR rules…they win and YOU think it’s THEIR FAULT!

I speak to the people I love. If I’ve spoken to you on the phone recently or EVER…it’s because I love you. Yep, even YOU 

If I haven’t spoken to you, it does NOT mean I don’t love you…it just means I LOVE myself too.

Part of loving myself (I recommend it) is being the BEST steward of my time (it’s a gift) as I can.

Someone might say, “Ok Matt, shut up about it on Facebook then and just do you.”

I’m not posting this for them. I’m posting it for the people who are TIRED of having their time monopolized “by others”.

I’m posting this for the people who “don’t have enough time”.

I’m posting this for the people who “couldn’t get around to it”.

No one is else is monopolizing YOUR time.
You have enough time.
You CAN get around to it.

You CHOOSE not to.

It’s cool. We all make choices, and not all our choices are the best.

But our choices ARE – OUR CHOICES.

YOU are in control. It’s YOUR time.

You can waste it, or use it for GOOD.

This is a message I’m receiving…and I’m working on it EVEN MORE now… for ME.

WHY?

Because for the last 20 YEARS I have been the guy who will talk to everyone. That intern, that business owner, that gal with an idea…

I’ve donated HUNDREDS of hours of my time for the good of others…

Guess how many of them were REPEAT conversations?

As in – I spoke with the same people about the same thing (for hours) more than once…sometimes every other year or every year….

Out of HUNDREDS of people and THOUSANDS of MINUTES….Guess how many of THOSE conversations turned into THEM taking ACTION and DOING what was discussed?

0

They want ME to DO the doing.
They want to be SAVED.

No one is coming to SAVE you.

LESS talk, more action.

If you’re bogged down by “chats” and “conversations” – eliminate them and watch what happens.

If you don’t have enough time, stop watching TV, or scrolling through your facebook feed.

If you don’t like this post or these thoughts – save yourself some time and don’t listen to (or read) a word I say.

Save you some time already!

I’m Matt Dubiel and I approved this message.

P.S. Think I’m a hypocrite? Nah. I do ALL the things I mentioned above. I make all the mistakes I’m highlighting. The difference is I’m working on them one at a time. Not to be perfect. Just to get better. If something I’m going through helps you or someone else – we start to get some ripples. I *believe we need some GOOD ripples, don’t you?