Cheap Isn’t A Sustainable Value Proposition (But This Is)

Jeff Bezos famously said, “your margin is my advantage,” and you’re not him.

Customers want a great deal. But a deal is when clients believe they are getting value worth more than what they paid. So the goal of any business is to get more customers to say yes at a higher price point.

When you compete on the lowest price, you enter a race to the bottom. Here’s why:

Cheap Prices

When you decrease prices, you…

• Race to the bottom.
• Decrease perceived value.
• Destroy margin.
• Decrease the value of an investment.
• Decrease emotional investment.
• Attract poor clients.

Is that what you want?

Higher Prices

When you increase prices, you…

• Attract the best clients.
• Increase the value of an investment.
• Increase emotional investment.
• Increase perceived value.
• Multiply margins.

“Those who pay the most, pay the most attention,” says Alex Hormozi. The more people invest in an outcome, the more likely they’ll achieve a positive result.

When you charge higher prices, you give $100,000 worth of value for $10,000. There’s so much value; it’s a steal.

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