But in this episode, we're going to be talking about prices, and more importantly, we'll be talking about the effect of price on your product, right.
And what I wanted to share with you is how the way we structure up our prices actually limits us and lowers our value as entrepreneurs and what we can do for customers. What we can do for our audiences. Right.
And so, the first mistake that we make in pricing is we price the wrong thing.
That's the first thing that I'm noticing a lot of entrepreneurs out there are saying in their showing right so we price, the wrong thing, what do I mean by that, we tried to charge for the commodity we price our product by looking at the commodity and then deciding Hey, this is how much this is going to cost you. And while that seems logical that I'll charge you for a pen.
Right. That's, that's, seems like a very logical approach to take. But the problem with that is this when you charge for a pen. Not only does.
Do you undervalue but he also underserved, the audience and here's why. When you charge for a pen, You aren't telling the audience the opportunities that we use, you aren't giving them a full extent to which the who use that pen, you aren't giving them the full value for which they could get from having that pen with them from you.
And essentially, in a nutshell, what I mean here is, as entrepreneurs, we need to understand that we can underserve our clients by miscommunicating. And so when you start charging for a commodity, what we are doing is we are stripping all the value, all the opportunities, and all the benefits that the clients want, and we end up giving them a commodity.
And that is a disservice to them, we really aren't helping them as much as we want to help them, because we have stripped away all the key things that the audience won't to remember when they're buying this product or service.
What they want is they want a product, but they want, what exactly the product could do for them, right. So, sorry. What I mean is they want what the product can do for them, not the product, the product is just the means to an end, they want the benefits they want the outcome that's the right word I'm looking for there. So the mistake we make is we price the wrong thing, that's the first thing.
And then when we price the wrong thing, the next thing we do is we also undervalue it right when we price the wrong thing we also undervalue it. Right.
And then, when we do that, we also make the mistake of, as well as the pricing is.
We also make the mistake of essentially stripping away the value and the serving. And then we create this psychology around the product that has absolutely no value new and no meaning, the customer, but we also just present a product that is just a theme right an object, a widget, that's what I was looking for.
Right, so that's the third mistake that we make that is, we take this beautiful service that could have helped them and then strip it down to its bare bones, and then try and sell bad, which is not a very good way to be doing business because at the end of the day, one of the things that I've learned is and trying to piece this information together is this, we communicate, for one reason and the reason why we communicate is to feel better.
And when we are selling we are also communicating we exchanging information except sometimes we attach this information to a different external value, right.
So, and when we do that. Our goal is to feel better when we buy things we buy to feel better.
And that is a form of communication buying from what I'm seeing is a form of communication. When you write a letter, that is a package of products that you set up with someone else and then when they read it, they buy the message. Notice, I can't say.
They really didn't take action I have to say they buy into the message when you deliver a speech, they buy into that right. So selling, buying is actually a form of communication. Right, buying is a product of communication.
And so for communication to be successful, but we have to do is we have to realize that the audience.
And the customers when they are buying. Then they want to feel good, that's the reason why they are buying, they're buying to feel good. And because that is the case when we strip out the meaning, the benefits of our products. We are stripping out the key reason why they are buying in the first place, which is to feel good. Right.
And so I think there's almost a therapeutic or there's almost this benefits that connect us and makes us whole. When we buy a product because we are solving a need an emotional need, right, and we buy for emotional reasons.
So that's what I wanted to touch with the knowing just without going too much into the details, and the very specific, but the consequences of this is we devalue ourselves devalue a product to devalue our services,
but we also create mental and physical pain, mental pain which has to manifest as physical pain in terms of stress, anxiety, of all these things that are underpriced but also we bind so many things that are unnecessary which creates all sorts of a psychological phenomenon in our minds because they are not benefiting us, they are not taking us and making us a better person.
They're hurting us more than they're serving us in the long run, right, if you've ever seen someone buying something only to throw it on the side and then try and buy something was trying to feel good, simply because the psychology, they are getting, they're not getting the full results from that product they're getting, that's, I think is that significant, significant contribution to our mental health and our well being.
So that's one of the few things that I'm noticing there. So, what we can do instead is learn to realize that our products have a core need to essentially even help heal the wounds that are problems, questions, and roadblocks have created right because when you bind something, you actually have a wound inside you're trying to root to heal now, people wouldn't use the word wound, and I'm using it to be very specific and direct.
And while there was no way I'm using that word is to say that we are hurting when you buy a product right when you buy the medicine you're hurting when you buy alcohol you're hurting you're trying to hide from psychological pain.
When you buy, you know, when you buy a very nice sports car you're actually hurting you're trying to feel significant so you're experiencing emotional pain, but in a different method, right, so you're trying to feel good and to alleviate that pain, you buy yourself some expensive product to feel good, feel better, right, and sometimes even buy to feel happy.
Now, this happens your money can buy happiness. Well, and the tried hasn't really tried, because from what I'm seeing is it can, right, and to some degree, it really does do it right. So, with that says the next thing that you know when we've made this mistake of prices we need to realize that we need to take a step back and ask ourselves Who are we trying to serve. What do they want and how can we better serve them.
And the best way to go about that is to ask yourself those basic questions, and then answer them with the mindset of the fact that you're trying to help our ideal clients, right, so that's why we want to go about doing this when you're approaching the price game.
And when we do that when you approach it from the value, then we find that you're communicating those emotional needs, which is very, very powerful, which is very, very helpful to the client so that they're getting the benefits, but also the meaning, which is, you know, they're getting the emotional healed because, why do we go to coaching if coaching is just words,
I mean, they just tell us words counseling is just words, but people pay a lot of money to go there.
So, our sales message is also a product from what I'm learning it's a product, and it's a product that heals emotional needs.
Right. Our products the physical product or service that we deliver feels, and feels either the physical and give them physical results, and our sales messages, heal the emotional needs, satisfies their hunger for the result satisfies the hunger of searching for a very particular result that will result in a better state of mind better state of health, and a better state of well being, altogether.
So these are some of the things that I'm seeing which means our businesses are connected to us in a much more fundamental level than we are thinking because we're so used to thinking of business as just, you know, exchange transactions, money, and all these things but they're really connected to a human being and a human person, that makes sense.
Now, with that said, there are many tools to help with the sales, for example, the book with why by Simon Sinek is one example that helps you know, create your messaging in a structured way. Now you wouldn't think of this as a tool, but there are tools that help us structure, the language, right, for example, when you make a mistake you apologize, that is a structure in a language that you use in a particular situation. Right.
And so in our sales messages, there are also structures that we can use building blocks as they call them.
And so the thing that I'm noticing, for a lot of from a lot of entrepreneurs that have done really well is that not only are their structures, to the very clear, and our messaging but there's actually structures for a lot of things that creates the emotion and the desire, and for business owners knowing and taking advantage of this really has much more benefits than we've seen, you know, be highlighted in our current environment in our business environment, if that makes sense.
So I wanted to share that with you because I think it's quite valuable being able to price yourself properly because it means your business can thrive.
It also means you are doing a better service to your customer by pricing your product and services properly because, for you to price them properly, you must also heal their emotional needs, right, you must satisfy their emotional needs, and those needs and needs in the very fundamentals of the being and the well being of your clients.
So, thank you so much for tuning in on this episode of the virtual entrepreneur, and hope you got value from that, the notes for this episode can be found at a bad marketing help.com And you can also find the previous or from a previous episode there.
I apologize I forgot the name of the episode we did yesterday, I publish every single day. And today has been immense and intense in terms of learning.
But uh, you find it there as well so that is h e r v e RT marketing help.com With that said, I hope to get some value, and I will talk to you in our next episode of the virtual intrapreneur.
And yes, that's a virtual background over there.