In this podcast, I want to give you a couple quick tips on pricing that will make you more money if you just do the stuff that I outline in this podcast.

Enjoy. Have something extremely expensive to sell that you never even plan on selling.

I learned about this anchoring tactic from a friend of mine and he said, listen, man, you can just put something on your menu of items or

services that you sell that's 10 or 100 times more expensive. And just by having it there,

it'll anchor everything else on your menu or the rest of the prices that you have. And just make it

something that if someone actually bought it, you'd be stoked that they did. But what ends up

happening is that, one, you'll sell more people on your core offer because they have this big

price anchor. Second, it allows you to nudge up your main offer's price because related to the big

one, it looks like almost nothing. I was talking to a different friend of mine and I said,

hey, you know, you should consider just adding one of these things in. And he had a weight loss business,

a very generic online weight loss business. And so he added a six times higher price version

of his offer. And then the craziest thing happened. People started buying that more than his

core offer. And when he did that, he tripled his profit overnight.

And so the thing is that it also breaks you, especially if you're starting in business,

out of this fear of raising prices by just saying, hey, there's no way anyone's going to buy this.

I'm going to make this so expensive, no one's going to buy it, And that's okay. So you give yourself permission to just fly it out there. But what you will find is that 10% of customers just want to buy the most expensive thing. These are the whales. And the only thing worse than making a $1,000 offer to somebody with a $100 budget is making a $100 offer to someone with a $1,000 budget.

Because in the first scenario, you lose $100. In the second scenario, you lose $900 of the money

that you should have made but didn't. Raising prices almost always makes you more money, but you hear

no more often. And so let me break this down. So I had a sales guy in one of our portfolio companies

and we doubled the price of a product. So a lot of people are really afraid of like 10% or 20%

increases. Like I'll test 4x 5x price differences. Pricing in many instances is far more inelastic

than you think it is. All right, so elastic versus inelastic pricing. I'm not

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