05 Building in Public: Create an offer, not a commodity
Look at most offers’ companies have.
What do you see? And what do they have in common?
Well, let me tell ya.
They kinda suck. Why? Price is their main lever. And when price is the main lever both the customer and the business lose.
Let me explain.
Businesses that focus on price do the following: they determine what they can eliminate from the offer. So, costs are cut. And how does this get passed on to the customer? Well, the customer receives a product or service that is of less quality. Less features, less support, and less quality inputs. Basically, a shittier offer but they’re “saving” a few bucks.
It’s a race to the bottom. And this is why most businesses fail. They’re competing on price, which only has one way to go. (Which is down.)
Our goal with heycpa is the exact opposite.
We won’t compete on price. We’ll price our services high because we’ll deliver high value services. And we won’t be ashamed of it either. Pricing products and services that align with value is how businesses should operate. But often we aren’t confident enough to charge for said services.
Here’s an example from Elevate Financial. When I first started, I had my CPA and all applicable experience needed. But I was scared. So, I priced my services way too low. (PS my retainer clients ebb and flow, and those have worked in and out of my favour. They’re also my favourite clients. So, win, win).
This is how hourly fees have changed:
- First three-months: $50-65 / hour
- Next 4 - 5 Months: $65 - 80 / hour (thought $80 was sick).
- Nine months to date (basically the last year): >$150 / hour. And I won’t charge anything lower.
I should have just started at >$150 / hour. Why? Because no one has blinked. If my services are providing value, then it’s a win for me, and a win for the client.
But it’s awkward at first. Are we worth this? Do we deserve this? Imposter syndrome galore…
However, I received a great piece of advice during my price discovery stage from a mentor: “if clients aren’t negotiating and they’re accepting your offer immediately, then guess what? Your prices are too low.” Sometimes you just gotta shoot for the top. Believe in your value. And price appropriately.
And that’s exactly what we’re going to do.
Friday’s post will delve more into what the offer looks like, what it entails, and why we’re confident in charging higher prices. (it’ll be more dense).
Happy Tuesday!
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Cheers.
Profit & Loss: April 1 - April 26, 2022
Revenue………. -$
Expenses……… ($722)
Profit (loss)..... ($722)