What Should I Charge?
episode
Business Growth Architect Show: Founders of the Future
31 min
1 speaker
8 chapters
transcribed 10 days ago
Transcript
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Transcript generated automatically by AI and may contain errors.
Why is pricing more about trust than just the number?
Most entrepreneurs think the job of pricing is to close that gap by just being cheaper or clever enough and that really is not it.
That's not a three thousand dollar value. It really isn't. Now suddenly I am not believable because then somebody says, Well, if that's what she does, why is she only charging three thousand dollars for
Not everyone is your customer. And when we try to make it for everybody, it becomes it's for no one. Price is not the odd the number itself is not necessarily an obstacle. It's the trust and the way that you're trying to build trust towards that price. And pricing is one of the most powerful tools that any business has for building that trust.
Ed Lee with us today, the brand new published author of The Last Mile of Trust, personal friend and mentee of mine, and I couldn't be more thrilled to be here with you today, Ed, to ask you some tough questions about something you're incredibly passionate about, and that is pricing. So I want to start with a question that I've been uh pondering over. So everybody talks about friction, right? There's too much friction in your business. There is we need to get rid of the friction when we make purchases, the point of entry has to be low. What's the big deal about friction?
First of all, Beath, thank you so much for having me. It's definitely an honor to be here with you to have this conversation and definitely with your audience. So what is the big problem with friction? That's a great question. And it really starts with kind of watching what happens when you actually do it. I work with a lot of of high growth companies, tech companies, investors, and I fully bought into the go, go, go, reduce friction, reduce friction, reduce friction. And at some point I looked up and I realized that it really isn't serving anyone. It wasn't serving my clients. It wasn't serving the people I actually wanted to help. And one of the things I started to discover, and I just my own self-awareness and my own journey is that it was really disc disconnecting what.
entrepreneurs and business owners were building. And the incredible things that they were building and the amazing impact that they were having on the people that they work with, their customers, and e even the the people that get impacted by those customers and the actual worth that they're creating. So they get caught up in this rat race of sameness, feeling like they have to simplify everything down to the lowest common denominator just to be seen. And what that does is ultimately it erodes the very thing that made you different in the first place. It's your secret sauce. What makes you special? And so when I see that and this running away from friction, it loses an important signal that's absolutely critical to help you not only to
Yeah. Build a successful business, but also build the pricing that your customers will ultimately see.
I started reading your book and you said something along the lines of that you can either price it because everybody else prices it that way, or go down the road of what you think the market bears, right? You know, c clacking on bushes and shaking the tree and seeing how you compare to anything else, or you can do something completely different. Will you share with our audience what that other thing is and why the first one is in your world a really terrible idea.
Uh huh. So I've seen over two thousand companies in just over the last ten years. And one of the things is universally true. Every single one of them thinks that they are building something better. they are building something that will have more impact, dry better greater results. By definition, it means that they are different, unique, special.
How does friction erode a founder’s “secret sauce” and impact pricing?
And so when we are looking for our pricing. We start to our brains start to split into two directions. There is the builder, the creator, the entrepreneur, the creative in us. And then there's the business side, and then we start to doubt ourselves. We ask ourselves the question of is it actually worth what I think it's worth? Does it in fact have that much impact?
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Chapters
8 chapters
1
Why is pricing more about trust than just the number?
0:00–3:59
2
How does friction erode a founder’s “secret sauce” and impact pricing?
3:59–6:57
3
What’s the problem with pricing based on market comps instead of perceived value?
6:57–11:16
4
How can pricing be used as a filter to attract ideal customers and repel discount‑seekers?
11:16–15:06
5
What lessons does the Adobe subscription shift teach about pricing and feature overload?
15:06–19:29
6
How can personal values and family priorities shape a sustainable pricing strategy?
19:29–23:04
7
What steps did Ed take to evolve Hello Advisor’s offer and pricing model?
23:04–27:04
8
Where can listeners get the “Last Mile of Trust” book and the free pricing toolkit?
27:04–31:00