Always Raise the Price Ft. MikCin Creations

February 21, 2022

Always Raise the Price Ft. MikCin Creations

“Pricing our product is something we need some help with. Our last project was a built-in, and we did an hourly rate. Then we did materials plus 10%. But what we didn’t consider were things like gas and installation overhead. The other thing would be just getting people locally to know that we exist.”

Mike Leas

Pricing is one of the most challenging parts of building a business, but it is also one of the most integral ones as it is a big part of managing profitability. There are many online pricing formulas and guides, but the best method for getting a sound pricing methodology is simple.

“So the next time you do a built-in, raise the price and then continue to raise the price until people start saying no. You could go to our Facebook group and say, ‘Hey, what are your pricing formulas?’ You can play around, and there are spreadsheets that you can plug stuff into to see what it would look like.

But whatever it is at the end, tack on an extra 10-20%. Just because there’s always something that you’re not thinking about. Sometimes with pricing, it’s a new project that you’re working on, so you want to give a reasonable price so that they say yes. Then document the crap out of it, take some good pictures, and then raise the price afterward, especially if it’s like a quick thing.

That’s my mindset on pricing; just raise the price. Look at the value you’re providing people, see how others are doing it, and what they charge. Then you can play around with pricing formulas, and then just literally continue to raise the price every single day.”

Steve Larosiliere

How to Show your Pricing

The second part of Mike and Cindy’s pricing challenge is determining how to show this pricing model to their clients. Knowing your prices is only one part of the equation, and understanding how to communicate those prices to new and existing customers is entirely different.

“So you say labor and materials and then for the labor, maybe don’t even do an hourly thing. Just say, ‘This is how much it costs.’ That’s the value. What I like to do, too, in terms of pricing is not to present a quote, present a proposal.

One thing that I would do is make a PowerPoint presentation. You put your logo at the top, your ‘About Us’ on the second page, and then your history, your story, your mission, your vision, and your values. Then the next page is your testimonials; you get your quotes, then your terms and conditions, and put that all into a PowerPoint.

Then you say, ‘This is the price, and these are the terms. Half upfront, half upon delivery.’ This is what we’re going to do. That’s a proposal; that’s not a quote. I hate when people tell me, ‘Oh, I submitted a quote on QuickBooks.’ That’s not a quote. People will look at you as if you’re presenting me with the receipt. You need to sell people.”

Steve Larosiliere

Becoming the Most Popular Couple in Town

The second aspect of their business that Mike and Cindy wanted Steve’s input on was how to become more well known locally. As a growing business, expanding their reach is vitally important, whether online or locally, and much of that comes down to investing in the community and a relevant online presence.

“Remember, I was telling you that you need to make yourselves the most popular couple in town. So take a screenshot on your phone of this call right now. Then post it to your Facebook and say, ‘We just did our first podcast.’ From there, take that screenshot and contact your local newspaper.

Write down your proposal, mission, vision, and values, and say, ‘Hey, if you’d be interested, we’d love for you to do a feature on us, a husband and wife woodworking company in town.’ They can then donate a percentage of their sales to foster care. Make one piece a month, make a charcuterie board, and donate it to the foster care system in your town.

I’m looking at you, a beautiful couple with a beautiful family. You need to be open and transparent with your entire community on what’s working, what’s not working, your fears, your strengths, everything. You know those YouTube couples who divulge everything? You need to be that couple.

You can post a storytime on your Facebook page that starts with, ‘A year ago, our house flooded and we lost everything. Mike started to do woodworking. Cindy started to paint. And we were doing things to make our ends meet. Next thing you know, I started listening to this podcast, and it really inspired me, and that’s how I started selling stuff on Facebook. Fast forward to the fall. I’ve been able to take these skills, my customers, and the money that I’ve made and been able to go full time. Three months later, I’m on the podcast that I learned all of this stuff from.’”

Steve Larosiliere

Everyone has a story, and the most significant part of connecting with your customer base is conveying that story and who you are to them in a digestible way. Make your community understand who you are, show what makes you unique, and you will be able to make connections and forge relationships more easily than you ever thought possible.

Website: https://www.mikcincreations.com