By Ryan Miller (Visit my website)
People pay for the outcome you produce for them, not the product or service you sell.
I’ve been saying that to my barber for the last few years. Initially, he had a hard time getting over the fact that he should keep raising his rates. They were at $55 for a cut, which was already on the high side for a barber. But I told him we weren’t paying for any old barber, or an hour of his time. I told him we were paying for an experience and an outcome that few could match.
What do I mean by that?
With a fresh cut, I feel like I can take on the world. I do better from the stage with a fresh cut. I shout better content with a fresh cut. And my wife even thinks I’m a little “hotter” with a fresh cut 😉.
Look good -> Feel good -> Do good
So Russ slowly started raising his rates. He’d get a comment or two from a client questioning the new rate, but retention stayed high.
“Raise em again…” I’d say.
He slowly kept raising rates. And he’s now charging $75 for the best cut around and his calendar is booked out 3-4 weeks throughout the year.
I’m stoked for him. And I’m happy to pay him his going rate, and tip him on top of it.
It’s a lesson to us all.
People pay for the outcome you produce for them, not the product or service you sell.
Want to charge more/make more?
Understand what outcomes your ideal client is after and figure out what it’s worth to them to achieve em.
