Most business owners are undercharging and they don't even know it. They think that being

affordable helps them win more jobs, but it's actually the reason they stay stuck. If you're

the cheapest in the market, you're not serving the customer. You're guarantee you won't be

around when they need you. At 24 years old, I launched my first home security business. Everybody

else was charging between $44 and $49 a month.

We thought we were smart so we came in at 42. At the same time, we paid our reps more than

anyone else because we wanted top talent. We paid more and charged less. When we should have been

here and here, we were here and here, leaving a very tiny margin. This one decision

alone led to our business failing and me having to file a bankruptcy for $2.2 million. That's why

pricing is the first thing I fix when I walk into any business, because it determines everything

else, your quality, your team, your profit, and your future. Pricing isn't just a number.

It literally is a strategy. It tells the market who you are, how you operate, and how long

you're going to be surviving. There are three pricing truths that every business owner needs

to understand. One, you don't have one customer. You actually have two customers.

Customer number one is your team. If you don't charge enough to pay them well, train them well, and keep them, your second customer, the homeowner, is going to lose.

When you charge too little, you're not being generous. You're starving your business. You can't deliver elite service with bargain pricing. Number two, a dollar to you is worth more than a dollar

to the customer. Let me explain. Here's the simple math. Let's say you charge $100 for your average job. After all

is said and done, you're netting 10%, which would be about $10 per project. If you were to increase

your price by $10 to $110 and change nothing else in your process, you would literally increase your price by $10 to $110 and change nothing else in your process, you would literally

increase your profit 100% to $20. You would literally increase your profit by 100% all by only

increasing your price to the customer by 10%. To your customer, that extra 10% barely registers.

To you, it's literally everything. Every dollar over your cost goes directly to your bottom line.

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