18d • Minute Reads
Stop Being Cheap…Charging More is NOT Greed!
Words I Like: If you’re good at something. Never do it for free.
Minute Read: Why People Always Undercharge
Small business owners usually do not charge too little because they are bad people, bad at sales, or bad at math. They charge too little because they price from their own wallet and not from the value of the problem they solve. They know what it feels like to struggle, so they feel weird charging real money. Or the skill feels easy to them, so they assume it must not be worth much.
Then the business gets squeezed. Cash stays tight. Help stays unaffordable. Growth stays slow.
Here’s a term to put things into perspective:
GROSS MARGIN is what you charge MINUS what it costs you to deliver.
That number runs the whole business. If it costs you $100 to deliver a service, then at 70% gross margin you charge about $333. At 80%, you charge $500. At 90%, you charge $1,000. Those percentages look close. They are not. At 70%, you keep about $233. At 80%, you keep $400. At 90%, you keep $900.
Big difference. Same service but way different business.
And here’s the deeper issue.
If your service looks like everyone else’s service, then customers compare on price. That is the COMMODITY PROBLEM. You get pushed into the same game as everyone else. Same promises. Same pitch. Same cheap offers. Same race to the bottom. No bueno.
Here’s how you solve this:
The fix is not “charge more because you believe in yourself.” It’s a cute response but not enough.
You have to create more value and package it better.
That is what a Grand Slam Offer does. It turns a price-driven purchase into a value-driven purchase. In simpler terms, it makes your thing hard to compare. So the decision is no longer “you vs cheaper guy.” It becomes “your offer vs doing nothing.” That is where premiums live.
Quick tutorial:
- Start with the dream outcome. What does the customer actually want?
- Then list the problems stopping them from getting it and attach solutions to those problems.
- Then trim and stack the best solutions into one clean offer.
- Then strengthen it with terms: bonuses, guarantees, naming, and payment structure.
That is how you stop selling “hours” or “lower price” and start selling a result.
The point is simple.
People charge low when the offer looks normal. People charge high when the offer feels different, valuable, and hard to compare.
If this is you, stop asking “how do I justify charging more?” Ask “how do I make this offer worth more?” That question changes everything.
Missing this can keep you working hard for customers who pay little and ask a lot. If you want to streamline the process, check out the templates and frameworks in the modules.
Charge for the pain you solve.
-Diego
PS - Full breakdown on this in the Building Offers module. Read it and make more money.
1
0 comments
Stop Being Cheap…Charging More is NOT Greed!
Powered by