Intro

Today, I'm giving you four business pricing strategies to maximize business profit. The last one is why I've stayed competitive over the last two decades. If you're looking to build a great lifestyle business, follow along.

1. Call Around

This is pretty easy to do. Pick up the phone, call around, and see what's out there. It's a good way to start out, but don't depend on it solely as a pricing strategy. Competitors will catch on, and eventually, they'll figure out how to mess with you. Personally, I never use this as a pricing strategy.

2. Don't Care What Other People Charge

A lot of mentees ask this question. The truth is, it doesn't really matter. Charge what you think is fair and what will work for you. How I did it was basically figuring out what my hourly wage was and then tripled it to manage overhead and future growth. Don't worry if you're overcharging or undercharging.

3. Don't Be Ashamed of Profit

It's how you will survive. Whatever you do, make sure you make enough profit. That's the name of the game. Yes, you started this business because you wanted to do what you love, and yes, you can't be too greedy. But no one sees the risk you put on yourself when you're starting a business. Price your work so that you have profit to grow. If you don't, you're not going to survive.

4. If Your Unique Selling Proposition (USP) is Golden, You'll Never Race to the Bottom

Ask yourself if your company is like a car brand. Would you be selling Honda Civics or Ferraris? Both companies make a ton of money, but their value propositions are very different. Do you want to sell on high volume and low margin or low volume and high margin? For my own agency, I've always priced ourselves around a high-end Acura or an entry-level Mercedes.

Outro

Ultimately, though pricing is just the start. How are you going to actually sell to these folks? In the next video series, I'm going to share with you my tried-and-true sales tips I've learned over the years. If you like this video, please share, like, and subscribe. Follow along if you want to start a great lifestyle business and build wealth. Thanks for watching "You Know Ted"! I'll see you in the next one. Bye.