Greg Witz and Robin Waite have a fab discussion on the betterHuman Podcast about business, scaling, entrepreneurship, pricing and Fearless Business brand
In the world of business, one of the most intriguing and challenging aspects is mastering the art of pricing and scaling. For those seeking insights into this complex world, look no further than Robin Waite, a seasoned business coach and author. In a recent podcast episode, Robin shared his valuable insights on these critical topics in an episode of the BetterHUMAN Podcast with Greg Witz. Here, we dive deep into the conversation, offering a comprehensive guide on how to price your services and scale your business effectively.
Greg Witz’s primary mission is to inspire all of us to improve ourselves. The core ethos of Witz Education for over three decades has been the enhancement of human potential. As an entrepreneur, influential thinker, author, mentor, and father, Greg skillfully combines psychology, communication expertise, practical wisdom, and a straightforward approach. Whether it's startups or the corridors of power, Greg's true passion lies in helping entrepreneurs and business leaders reach the pinnacle of their capabilities. His extensive knowledge of organisational and personal development, complemented by his corporate experience, enables Greg to adeptly craft and deliver customised programs that have positively impacted the careers and personal lives of countless Witz clients.
Robin Waite kicks off the discussion by stressing the importance of understanding the fundamental difference between value and price. For business success, it's imperative to realise that price is merely what you pay for a product or service, whereas value represents what you receive in return.
In the realm of pricing, businesses striving for success prioritise delivering services that offer a high perceived value to their clients. The key is to offer these high-value services without overtaxing additional resources, such as time and expenses. When clients can discern the tangible benefits of these high-value services, it creates a win-win situation.
The dynamic nature of business means that your pricing strategy might need to evolve as your business grows. For instance, your pricing structure could undergo two or three changes a year to accommodate your expanding business. This adaptability ensures that your pricing aligns with the evolving needs and scale of your clientele.
Another vital aspect of pricing, as Robin shares, is fairness. Several anecdotes highlight conversations with his bookkeeper and accountant, illustrating the significance of pricing based on fairness and value rather than arbitrary price hikes. By being transparent and equitable in your pricing, you build trust and foster stronger relationships with your clients.
Scaling from a solopreneur to a team leader involves several distinct stages. Robin elucidates these critical milestones that businesses typically traverse on this journey to scale effectively.
Managing your first hire marks a significant turning point. When your business reaches a certain level of growth, it's time to contemplate bringing in additional help. This help can come in the form of part-time or full-time staff members or freelancers. The crucial aspect is managing this transition adeptly to ensure maximum efficiency and productivity.
Interestingly, Robin points out that many businesses encounter specific challenges when they reach the seventh employee. It's a tipping point where the dynamics and management styles need to adapt. Businesses that can effectively understand and navigate this transition are more likely to scale efficiently.
The overarching message here is that, as a business owner, it's crucial to remain flexible and open to change. Even in situations where it might seem like your service provider is considering ending the business relationship, understanding their perspective and respecting their decision can lead to a more positive outcome.
Pricing and scaling are intrinsically linked. As Robin discusses, understanding your capacity is one of the critical aspects of pricing and scaling. What works for a business at one revenue level may not be effective as it scales. Capacity becomes a limiting factor, and understanding this capacity is vital to set the right prices and make strategic decisions.
In your journey to scale your business, consider repositioning your products or services. If you're currently selling lower-priced items in high quantities, but your scaling efforts require higher revenues, you might need to introduce premium offerings that can justify those higher price points.
In the grand finale of the conversation, Robin shares a personal story about his "Fearless" brand. Fearlessness, as he puts it, encourages stepping out of your comfort zone and embracing change and risk. Being fearless can help you navigate the challenges of entrepreneurship and, in the process, become a better human.
In closing, Robin invites us all to take the initiative to be fearless, kind, and generous, not just in our businesses but in our daily lives. These qualities can help us make a more profound impact on our businesses and the world around us.
The world of pricing and scaling in business is a labyrinth of complexities, but it is a journey worth undertaking. By focusing on the principles shared by Robin Waite, you can navigate these challenges with confidence and increase your chances of achieving your business goals.
Remember, the path to success is paved with understanding the nuances of value and price, managing scaling transitions adeptly, and embracing fearlessness, kindness, and generosity in your business endeavours.
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This Scorecard has been designed to show Coaches, Consultants and Freelancers their blind spots and provide instant, actionable steps on how to increase their prices.
