Warum die meisten Preisstaffeln nicht funktionieren

0:00Yes, I also interior design and wellness advisory services to ultra high net worth families and family offices. Okay, love this. I am I am that. >> [laughter] >> Yes. I'm an avatar. >> Exactly, you are my avatar. Yeah. Okay, what's revenue? >> actually. What's what's revenue? It's currently at 1.6 and I'm looking to be at 10 million by end of next year and then scale this to 250 million in next 10 years.

0:32>> All right, let's rock. What's the problem? So, it's a little bit of a Van Westerndorp issue where I'm building out this ladder and I have a question about the pricing structure. Basically, would you or Tony Robbins buy this ladder? Okay, kind of the constraint I have right now. I want to build it before we scale it. Okay. So, I have three tiers.

0:55The first one is the lowest and it's $80 a square foot for renovating or building a new home and that includes all of the construction selections, the drawings, the furniture layout and selections. We incorporate about a dozen different layers of wellness and we collaborate with the builder and architect. So, that's tier one, $80 a square foot and the whole vacation is that we convert their home into a wellness sanctuary so they don't have to leave to go to a wellness retreat.

1:28Okay. >> And tier tier two is a 7 to 10 year commitment across their whole real estate portfolio. Okay. >> And it's $100 a square foot because we do everything that's included in the first tier. We also add strategy across the residences, a plan for sequencing. The rates are locked in across that time period and we do like a property review to make sure every function of each property is in alignment. And then the final tier, tier three, is the other two tiers plus more of their whole ecosystem. So, we advise on their yacht, their plane, their offices, um and they get curated annual experiences. Like, we'll go to Italy and pick out their slab um for the countertop. We'll meet the artist in Vienna, whatever it is. They get priority placement, they get a 15-year roadmap, and they get annual account reviews where they've had a life event, um a baby, an injury, and we're presenting to the board about um you know, what we'd recommend. So, they get priority.

2:37And what's the price on that? That one is $100 a square foot as well, but there's a 200k uh stewardship retainer annually. Okay. Have you sold many of these? No. Well, short answer, the top two, tier two and three, are what we're adding. The tier one we've been doing for 20 years. Mhm.

3:04Mhm. >> So, that's what I'm I'm like, I don't know. I've run this through the AI like three different ways and I just don't know how to build this ladder. Yeah. Mhm. Well, I'm not actually sure if a ladder is the approach I would use with this with the business you have. Okay. Cuz when you talked to me through all all three of those, the first one made a lot of sense, and the other two I was like kind of squinting a little bit.

3:35Um >> Okay. Because fundamentally, let's say you did tier one, and then I said, "Hey, can you do my yachts, too?" You'd probably be like, "Yeah, sure." Right? And it would just be like at tier one. And so, for fractal pricing to really work, it needs to be like five times the price. And so, like going up by like 20% it's like it's too it's too undifferentiated. Does that make sense? Yes. And also for me 10-year 15-year commitment sounds very heavy.

4:00Okay. Like I think the richest people in the world want flexibility. We want options and we want speed. And we want to make sure that it's very easy and that when I pay you I don't have to redo it. Cuz then I would hate you. >> Right. Right. So and the goal is like I want to be working with families Mhm. through all their generations. I want to be doing all their properties. So rather than them hiring a designer in Spain and Dubai and New York, I'm doing all their properties.

4:28>> So here's what I think you should do. I actually think your annual retainer should be de minimus. It should be like a rounding error in this project. And the reason for that is I'll explain why. So we do this in home services a lot and the way that it works is like if I sell you a $100,000 thing, right? I'd say, "Hey, you know, we do a maintenance plan for $500 a year." Um and it's a again, it's a tiny percentage of the thing and it's cuz you don't care about the money and it should be positioned as insurance. Like I'll come by once a year just to make sure everything's working the way it should, all that kind of jazz, right? And it's like that's what most people do anyways.

5:06And so what it does is it gives you an excuse to always meet with them every year. And as soon as you walk into a rich person's house and you're an established vendor, they're going to have for you to do. Okay. So to me that's you probably need more continuity or want more continuity I'm guessing in the business. Yes, but I want to help people at a deeper, more integrated level, almost like a fractional board advisor for their properties. So Yeah. we don't replace their estate manager, we partner with them. Yeah, I get it. I guess my concern that makes me nervous is that I don't want to be like just doing, "Oh, we're going to you know, will you help us refresh our bathroom or redo the kitchen and like small renovation projects, I want to do the whole home.

5:52I think that that's all going to come down to like the the how rich the people that you're talking to are. >> [laughter] >> You know what I mean? Um and as as much as you I may you may hate to hear this like the big the small jobs get the big jobs. Yeah. You know what I mean? So >> I do hate to hear that. Yeah. But the thing is is it doesn't mean they're less profitable, right? And if we if you think about it is like this is me maintaining the business so that in 3 years or what cuz the thing is is rich people buy houses and yachts and planes all the time, right? And so like every year they're going to buy something or every other year they're going to buy something. So if it's an off year, you still make money, you still keep the relationship, you're still top of mind. And then I would like when I go there I'm like, "Hey, what else do you have in the in the pipeline of acquisition that we need to be looking at?" And then that you can price that way.

6:38Cuz like fundamentally your pricing already scales with the size of the thing, right? So you could have like a yacht pricing, a jet pricing, and a house pricing. That would make more sense to me um than having these tiers. And then Okay. And then the maintenance plan I would weave into it. You don't call it maintenance, call it strategy whatever. Whatever you want. It's I'm coming by once a year and I'm going to make sure your shit's not up. Um but then when I'm there, I'm going to ask you what other you got going on and I'm going to sell more Mhm.

7:04Okay. So it's more of here's my core offer and then I have a continuity plan that is just included and it's like an annual retainer and Okay. And then I can figure out some really great inclusions to include with that. Do you think that the $80 a square foot for the core offer is figure we typically do 10,000 square foot home. >> did the math in my head. I was like, "Yeah, I was like, okay, so 800 grand."

7:31Um it's funny cuz when you said the $80 a foot, I I wrote it down and I was like, "The first thing I'm going to tell her is that this number means nothing to me." Okay. And what I mean by that is like I don't know what $80 a foot is. I've I've The The likelihood is most of especially new customers, this will be They're They're either going to only buy from you cuz you're a referral, right? Uh or they're pricing out three different people. And at the end of the day, if you come up more buttoned up, more professional, better finishes, better looking aesthetic, you'll win the business.

8:05Right. >> they're coming to you not cuz they're trying to save save money. They're coming to you cuz they want they want the best Right. And we've decommoditized ourselves by saying we're a wellness advisory, which positions us really as a only one in the world at this point Right. that deals at the level of wellness that we do and interior design. So, we're not a commodity and they can't really price us out apples to apples. Sure. So, it's opened a lot of doors including with like the Rockefeller family office, but I I just want to get you know, the pricing dialed in. So, you're saying that if I were to hand a family office like their CEO If you said a hundred a foot or $80 a foot, I have no clue. They're just going to do the math and just figure out how much it costs. You know what I mean?

8:47Like it means it's whatever. But giving them that formula is okay. Yeah, it's fine. It's fine. They're just going to do the math. So, it doesn't like you can have that be internal and just price the job and send it to them. Well, yeah. Yeah. You know what I mean? I want to like Yeah. Give them something so that when they get on the call with me they're not completely blindsided. Like I'm trying to set the expectation of Yeah, we do $20 minimum for the value of your home and you know, it's like I think if you set that up front I again, I don't think the $80 really does much. Um but if you set that expectation up front that like we only deal with ultra ultra high net worth and family offices and it's $20 million plus, you know, estates minimum, they're already going to guess that you're more than 100 grand. Right?

9:35Yeah. Right. Okay. So, I would I would I would not do this ladder. I would have maybe I I don't even really care about the ladder in general. You're going to price your job cuz you're so bespoke anyways. You're bespoke. And so, I think the key point is like sell whatever you can get away with. A lot of people like if you're a sole at the table, as long as you give them exactly what they want, they'll love you. Add in the continuity so that you can keep getting business from them and it'll stack year over year.

10:00Okay. Okay. Well, I'll just go $100 a square foot and the continuity and you figure out some awesome features [laughter] for that. 100 is a nice simple number, right? Very easy to do the math. Super easy. Do it in your head. I love that. Okay. Amazing. Thank you so much, Alex, and I'm coming to L1 in March, so I will see you soon. Rock and roll. Appreciate you. Appreciate you. Take care. You bet. If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so, we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct your business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at your business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.