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If You Want To Make More Money, Avoid These 7 Mistakes

BigDeal

Hosted by Codie Sanchez

26m
Transcript

Original podcast

Summary

Written by a model from the transcript; not yet reviewed.

This episode addresses the common problem of business owners and professionals underpricing their services due to lack of confidence rather than market realities. The host breaks down the underlying psychology of pricing, warning listeners against paying what she calls the 'fear tax' and highlighting that the vast majority of pricing mistakes stem from charging too little rather than too much. Using examples like Jeni's Splendid Ice Creams—which surged to a hundred million dollars in revenue after doubling prices—the host illustrates how low prices can cripple a business while premium pricing enables growth, delegation, and better client results.

The discussion details seven specific pricing sins, including imitation, delusion, surrender discounts, hustle poverty, the hero complex, doormat custom work, and self-extraction. Listeners are given a concrete five-pronged framework to reprice their work, establish floors and ceilings based on the actual value created, and frame costs against the price of doing nothing. The episode aims to help listeners shed self-doubt, reevaluate their value, and build businesses with healthy operating margins.

  • Raise your prices if your close rate is extremely high, as an eighty or ninety percent close rate usually indicates you are underpriced. 5:45
  • Stop imitating competitors and setting prices based on market averages, which are often just the average of other people's fears. 9:02
  • Avoid deep discounting because training customers to buy only on discount erodes the margins needed to sustain the business. 11:19
  • Calculate your price as ten to thirty percent of the quantifiable value or money your work makes or saves the client. 17:54
  • Overcome pushback on price by asking the client to compare your fee against the opportunity cost of doing nothing. 19:17

Chapters

  1. 0:02
    Podcast Intro and Sponsor Announcement

    The host opens with a brief introduction and a commercial for Michelob Ultra’s NBA courtside contest.

  2. 0:57
    Pricing Mindset and the Seven Sins

    Codie Sanchez explains the importance of pricing and outlines the seven deadly pricing sins.

  3. 4:08
    Fear Tax and Owner Archetypes

    Discussion of how fear of pricing leads to underpricing and the OwnerScore archetype system to diagnose pricing habits.

  4. 8:19
    Seven Pricing Sins Explained

    Each sin—imitation, delusion, surrender, hustle poverty, hero complex, doormat work, and self‑extraction—is defined with examples and solutions.

  5. 14:16
    Value‑Based Pricing Framework

    Codie introduces a formula for setting prices based on 10–30% of the value delivered to the client.

  6. 21:36
    Practical Repricing Steps

    A five‑step framework for quickly raising prices, including setting floors/ceilings, outreach, and proposal tactics.

  7. 25:42
    Book Launch Promotion and Call to Action

    The host promotes his upcoming book, offers a million‑dollar giveaway, and urges listeners to share the episode with underpriced friends.

Highlights

  • 1:38

    The Ice Cream Stand Mistakestory

    An art student dropout sold Michelin-grade ice cream at low prices for four years while making very little money, nearly shutting down before doubling prices and growing into a one-hundred-million-dollar brand.

  • 5:15

    Most Pricing Mistakes Are Too Lowdata

    Research across thousands of products shows that eighty to nine-percent of pricing errors happen because owners charge too little, not because they are too expensive.

  • 6:28

    Pricing with Uncomfortable Energystrategy

    A guest clip emphasizes the importance of maintaining an independent attitude and setting prices that make both the provider and the client slightly uncomfortable.

  • 9:02

    The Danger of Market Ratesinsight

    The host argues that chasing the so-called market rate is essentially copying the average fear and poverty pact of struggling business owners.

  • 10:09

    The Bed Bath and Beyond Trapstory

    Using coupons to drive traffic initially boosted revenue but eventually destroyed margins, trapped the company in a discounting loop, and contributed to its ultimate collapse.

  • 21:10

    The One Percent Price Liftdata

    A Harvard Business Review analysis reveals that for the average company, a one percent improvement in price lifts operating profit by eleven percent.

  • 21:36

    The Five-Pronged Repricing Frameworkstrategy

    A step-by-step strategy for repricing includes setting a floor at double current rates, conducting client interviews, and sending a simple two-option proposal via email.

Quotes

  • “You're not overpriced. You're underconfident.”
    Codie Sanchez · 0:43
  • “I want you to take a step back and I want you to really think to yourself, where are my limited beliefs holding me back?”
    Codie Sanchez · 3:53
  • “If you have an 80% close rate, you are way too underpriced in your business.”
    Codie Sanchez · 5:45
  • “So Jenny 1.0, let's say, was paying what I like to call the fear tax, right?”
    Codie Sanchez · 3:22
  • Michelob Ultra 0:02–0:27
  • Ownerbook.com 25:13–26:00
  • Lululemon 26:06–26:34

About this episode

My new book Own Or Be Owned is out now! I wrote Own or Be Owned to answer one question: How do you make more money, less miserably? I broke it into the 12 Profit Levers… The 12 levers I've seen determine whether you print cash or hate your life. Check it out: → https://contrarianthinking.biz/raiseyourprices The only thing between you and the income you want is believing you need permission to charge what you're worth. In this episode, you'll learn: The “Fear Tax” Why discounting is a death spiral and how Bed Bath & Beyond went bankrupt The value split pricing model: how to charge 10% to 30% of the value you create so your client keeps 70% to 90% of the upside and everybody wins The Seven Deadly Pricing Sins My five step repricing framework ___________ (00:00:00) Introduction: The Fear Tax and Why You're Underpriced (00:00:50) Jenny's Splendid Ice Cream: The $2 Scoop That Almost Killed a Dream (00:03:38) The Seven Deadly Pricing Sins: How to Identify Your Mistakes (00:05:45) Chris Doe on Pricing Psychology: The With or Without You Energy (00:07:50) Sin One and Two: Imitation and Delusion (00:09:09) Sin Three: Surrender Through Discounting (00:10:58) Sin Four Through Seven: Hustle Poverty, Hero Complex, Doormat Work, and Self-Extraction (00:15:01) Charlie's Story: From $5K Job Coaching to $40K Book Proposals (00:17:16) Value-Based Pricing: The 10-20-30% Formula (00:18:50) Compared to What: The Most Powerful Sales Question (00:21:06) The Five-Step Repricing Framework: Floor, Ceiling, and Action (00:24:31) The Million Dollar Book Launch and Your Next Move ___________ MORE FROM BIGDEAL 🎥 YouTube: https://www.youtube.com/@podcastbigdeal 📸 Instagram: https://www.instagram.com/bigdeal.podcast 📽️ TikTok: https://www.tiktok.com/@big.deal.pod MORE FROM CODIE SANCHEZ 🎥 YouTube: https://www.youtube.com/@codiesanchezct 📸 Instagram: https://www.instagram.com/codiesanchez 📽️ TikTok: https://www.tiktok.com/@realcodiesanchez OTHER THINGS WE DO 🌐 Our community: https://contrarianthinking.typeform.com/to/WBztXXID 📰 Free newsletter: https://contrarianthinking.biz/3XWLlZp 📚 Biz buying course: https://contrarianthinking.biz/3NhjGgN 🏠 Resibrands: https://resibrands.com/ 💰 CT Capital: https://contrarianthinking.biz/4eRyGOk 🏦 Main St Hold Co: https://contrarianthinking.biz/3YfGa8u Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

0:00
26:20

5,086 words · 4 speakers

Speaker names marked are inferred from speaking time and the show’s known hosts — they are not voice-verified.

Topics

  • Own or Be Owned
  • Columbus
  • Ohio
  • Jenny's Splendid Ice Cream
  • Bed Bath & Beyond
  • McKinsey

Page updated · transcript and summary are machine-generated