About this video
Price is pure margin, yet it's the lever most owners avoid. Jay on why fear keeps businesses underpriced.
Transcript
Jay Dotson: Price is pure margin. This is the least effort and the greatest output. This is oftentimes the greatest lever that you have.
Jay Dotson: And I understand that not everybody might be in a position to do so, right? You might be in a very commoditized business, or you might be in a low-bid situation, maybe doing public work. And so you might not always have that ability.
Jay Dotson: But if you do, oftentimes we see that we are underpricing the value of our services. We're pricing based on our competitors rather than on the relative value we're bringing to organizations.
Jay Dotson: So I want to encourage you, if you're in a position, consider increasing your prices, because all of it falls to the bottom line. You need no additional requirements to hire folks or create additional capacity, and yet it's still the lever that most avoid.
Jay Dotson: Why do we avoid this? Fear. What are we fearing? We'll lose customers, right? There's lots of fear in it.
Jay Dotson: And oftentimes you might lose customers. We raise prices expecting to lose customers, but we do it because we know the amount that will leave us is less than the net gain we'll have. We'll actually serve fewer customers at more money, which is a win, right? So there's not much to fear if that is the potential outcome, right?
