Dan Martell - The first question I ask new clients

Length

56 seconds

Words per minute

202.74551

Word count

192

Sentence count

Summary

If somebody bought your business tomorrow, what would the first thing they would make? What would they do first? Would they fix their pricing? Why does pricing matter so much? And why is it so important that you fix it?

Transcript

00:00:00.000 If somebody bought your business tomorrow,

00:00:01.200 what's the first decision they would make?

00:00:02.680 Why have you not made that decision?

00:00:04.060 For most companies is they would fix their pricing.

00:00:06.860 I had a friend of mine, Rachel, she was a consultant.

00:00:09.660 She was crazy busy trying to keep all the plates spinning, 0.80

00:00:12.820 but there was no profit.

00:00:14.220 She was paying herself 30, 40 grand a year.

00:00:16.340 She thought that was normal.

00:00:17.740 When I looked under the hood,

00:00:19.560 I learned that there was a gap between

00:00:22.340 what she was charging

00:00:23.560 versus what it cost her to deliver her service.

00:00:26.660 The reason why pricing matters is because every industry,

00:00:29.940 It doesn't matter if you're in real estate,

00:00:31.980 coaching, agency, there's a gross margin that's normal

00:00:35.520 for your industry that you have to map to.

00:00:37.940 When I looked at Rachel's business

00:00:39.660 and we understood where her gross margin was, 0.99

00:00:42.220 all we did was double her prices.

00:00:43.660 Half her customers left,

00:00:45.400 but it created capacity, which is great.

00:00:47.560 But she doubled her business, 0.97

00:00:49.380 which mean that she was making 25% more profit 0.96

00:00:53.400 and they were easier to work with

00:00:54.840 and they were fun to work with.

Dan Martell - July 06, 2023

The first question I ask new clients

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Summary

Transcript