Hello everybody and welcome to Five minutes with Billy Gene, episode 5. Youre here with
Billy Gene and Reena. [Sound wasnt as good but when you do the sound effects; make mine
louder than her so]. So, today were gonna talk about something that you all wonder about
and its the very simple concept of what you should be charging your clients, what you
should be charging your clients.
And today, I am going to clarify it for you, Im gonna
make it very very very simple and Reena is going to paint the picture for you of why
that makes sense. So, let me make that make sense. You can charge people based on the
value that you deliver, you can charge people based on the value that you deliver. In other
words, if youre offering a service that helps businesses grow and you say: Hey, I wanna
charge you 5000 dollars a month but as a result from working with you, they only make 3000
dollars a month.
Then youre over charging my friend, youre over charging my friend.
And then if youre sitting there like: Oh my Gosh Billy, I dont really know what kind of
results my campaign yields so I dont know what to price and you dont know enough about
your business or service and you need to take a step back. Maybe just developing some case
studies and finding out what you do is actually monetary worth. Because at the end of the
day every business owner just wants to make more money, and if you cant show that then
you are Fucked. [Zoom in right here, I wanna say it again If you cant clearly show your
business how youll make them more money, then you are 1, 2, 3, Fucked].
So, here is the reality of this situation, its that people place value based on the experience
that they get.
I will show you an example, Reena, whats the most youve ever spent on
a concert ticket? Reena >>
If were talking about festivals, about Billy Gene >>
All that Coachella shit, Outside Lands or whatever the hell she goes to
Reena >> About 350
Billy Gene >> Three Hundred and Fifty Dollars for a ticket.
For me, Ill watch a video on Youtube and Im good, right? But for her, it makes sense.
Tell me why, whats worth 350 dollars for you? Reena >>
Eh Three day event, a bunch of bands I really like to see that I would pay individually
for way more than that, so Billy Gene >>
So, you basically saw the value Reena >>
It was a Bundle Billy Gene >>
It was a Bundle, they got you a Bundle deal so it makes sense. So, you would pay that
price alone to see one of them and you got to see all of them together, so it was
Reena >> Something like that.
Billy Gene >> Close enough. So, my question to you is, how
many years have you been to this event? Reena >>
Five. Billy Gene >>
So, shes been five times and paid 350 dollars every time.
So the company has brought in
1500 dollars for her and shes a five year customer, #Loyalty. My friends, thats how
you create recurring revenue in your business, you deliver and experience that someone wants
more, over again and again and again. So, these lightning in a bottle Coachella people
got Reena, they got her hooked, they figured her out, they delivered value to her, right?
So, [weve got our notes here] now objections, right? So a lot of times, you guys will talk
to the client and youll say: You know Sir you have a good conversation, they really
like you and then you mention your price Ok, my services are Sometimes, when I first started,
sometimes I would charge like 300 bucks and people are like: Nah, thats too expensive
and I knew they could afford it. So, lets just say youre charging 500 dollars a month
for your services, just 500 bucks, right? And you get the response and they go: You
know, I really like you and I think it is, but I just really cant afford it right now.
How much of that just kills you; you spent 3 days, maybe 3 months chasing down a client
and they just look you in the eye and say they cant afford it.
So you know what they
are really saying to you? What theyre really saying is: its just not worth it and I dont
really believe that its going to work. Let me show you an example, Reena, If I was going
to sell you a Ferrari right now for 20.000 Dollars, right? And lets assume that you only
had 100 dollars in your checking and savings account combined, but I was gonna sell you
a Ferrari for 20.000 Dollars. What would you do to buy that Ferrari?
Reena >> Is it a new Ferrari?
Billy Gene >> Its a brand new Ferrari with all the bells
and whistles, the rims, the tinted windows, [unrecognizable word] and all the shit, LoJack.
Reena >> I would grab your phone and Venmo myself.
I would create a GoFundMe account. Billy Gene >>
GoFundMe account, Id have the opportunity to buy thats a really good idea.
Reena >> I would get my boyfriend to sell his sperm.
Billy Gene >> See! Creative, but here is the thing Anything
else you would do? Or anything you wouldnt do? Is there anything you wouldnt do?
Reena >> Not if it would get me 20.000 Dollars.
Billy Gene >> So, here is the thing, even though Reena in
this example has 100 dollars in her checking and savings account, because she understands
the value of that Ferrari so far supersedes 20.000 Dollars that she can freaking resell
it and make a couple hundred grand.
She can just own it and have a 20.000 Dollars Ferrari
and just enjoy it. But my point is, shes willing to sell her boyfriends sperm to get a Ferrari,
shes willing to steal my phone and Venmo herself money to get the Ferrari right now because
the value is clear. And she also has confidence in the product, Ferrari has been around forever,
everyone knows what a Ferrari is, she trusts that this is obviously a good deal. So what
your client really is saying to you is: Hey, Im not gonna buy your shit because youre not
a motherfucker Ferrari.
So, here is what well leave you with today,
when youre approaching a client, you need to clearly understand and be realistic about
the value you deliver, and if youre sitting there right now like: Well, you know, I know
I deliver little value because a lot of people will see the advertisements that I create,
and It has a good brand effect in the long term. If you have to tell yourself all these
lies and like rationalize your price, youre not worth what you charge, and you now the
only way to overcome that is to acquire a new skill set, be able to do something that
somebody else cant; that then makes yourself worth that money. #Doctors, #Attorneys, they
can charge a shitload because I cant defend myself, I cant give myself open heart surgery;
so they can charge accordingly because there is only a handful of people in the world who
can do that. So, if your skill set consists of a bunch of shit that everybody else can
do, then youre gonna have a hard time charging higher prices and getting paid what you wanna
be paid.
Wooow! Youve just had Five minutes with Billy Gene and Reena..
