Preise anhand der Abschlussquote anheben

0:00close rates versus pricing. So, if you sell people stuff, now this is be specifically for people who sell with a salesperson in person or a salesman online, so on the phones or Zoom if that's how you fancy it. Um, I want to kind of give you kind of a tier ladder list to think through in terms of rules of thumb. And so, the reason that there's a relationship between obviously price and close rate is that if you lower the price, we know our old supply demand curves, if you lower price, demand goes up, etc. Um, the idea is if you're closing at 80% or more in whatever you sell, so four out of five people you talk to buy your thing, you're typically underpriced by 3 to 4x.

0:37That might sound mindblowing to you, but that is just the data that I've again rule of thumb that I've collected over many years of business. Now, underneath of that, let's say that your closure isn't necessarily over 80%. Let's say it's 60 to 80. So you're closing between, you know, uh, three and four out of five who are there. You're probably underpriced by between two and 3x. So if you're currently charging 100, you might definitely consider going to 200 and you might have a 250 or 300 in you and you'd be able to make more money. Now, the next tier above that is between 50 and 60%. So as we get close, you'll notice that the uh the jumps compress. If you're between 50 and 60%, typically you're underpriced by one and a half to 2x. So that $100 price point should probably be one and a half. So 150 or $200. Now if you're between 40 and 50% close rates, you're probably between 1.25 to one and a halfx underpriced. Meaning now you should be at maybe 125 or consider 150 as a final price point. Now if you're like okay between I'm at 35%. Well, you're between 30 and 40%. which for me is appropriately priced under the assumption you have all of the selling mechanisms in place to educate a consumer prior to the purchase so that you're not creating a pitch or a spiel.

1:49Instead, they've already consumed all of this stuff prior to the pitch and then the entire close call is about personalization and helping them make the decision. That is appropriately designed sales motion. If you have that sales motion and you are closing 35%, you're appropriately priced. Now, sometimes people have that close rate, but they don't have any of that stuff. And in those conditions, then you still probably have a double or a triple in your price if you set a proper sales motion in place. Now, if you're below 30%. So, that means that less than one out of three people who you talk to buy, then you either have an avatar issue, you're selling to the wrong person, you have a sales motion issue. Um, and I fix those two first before ever considering lowering price because it almost always is the thing that the sales team might consider wanting to do if you have a bad culture on your sales team or an entrepreneur who's afraid. But more realistically, raising prices is almost always the direction that businesses go in with one clear exception, which is if you have a business that has unlimited scale. Let's say you sell a software product.

2:44Uh that pricing is going to be that pricing decision is going to be incredibly important to you because it balances two of the strongest uh influencers on the value of your company, which is going to be if you lower the price, it will also typically increase growth. And so uh you've got your gross margin, which is what the price dictates. and also the growth as a result. So if you have these two things then you lower the price growth rate goes up. If you raise the price uh gross margin goes up but growth rate goes down. And so the idea is we want to maximize both of those things. Now that's only for SAS companies which is probably like 5% of you here. For everybody else that is kind of my point here which is that you probably have an unscalable business which 80% of businesses are. Unscalable meaning they're service- based. And in those conditions there's only one way you go in service which is up. Because if you play it out long enough, you get good.

3:32You get enough demand because you're good. You can't service everybody. So, you change your chart. You go up. You go up in price. And then around and around you go. And the faster you spin that loop to going up in price, the more you will progress in business because your gross margins will go up, your reputation will go up, you'll be able to hire better talent because you can pay them now. And it becomes a virtuous cycle versus the vicious cycle of trying to serve more people and paying less, having lower gross margins, hiring worse people, having worse customers at lower prices, and around and around you go into the toilet. So that is the end end all beall. That is the pricing ladder that I use between price and close rate. Real quick, I'm going to show you the exact 10stage road map from zero to 100 million plus that less than 1% of companies finish. I've now done multiple times. And so I can say with a lot of confidence that these are the stages as headcount increases that you need to get through. And I broke each of these down by eight different functions of the business.

4:25What the constraint feels like what are the symptoms of it when you're going through it and then what steps we actually took to graduate. And we've done this across software physical products uh service businesses brickandmortar all of this and it works. And it's my gift to you. It's absolutely free. And so the link's in the description but you just go acquisition.comroadmap. Just enter your info and it'll spit it right back to you. Offering.