As crazy as this will sound, it's a true story.
Some time has passed so I've updated it for current links and podcast numbers, but the actual story is 100% true...and it still pisses me off. But I digress.
Here we go...
So Short-Sighted Entrepreneur (SSE) who does not understand what it means to live with an abundant mentality hits me up online...
Hey, I know you from our marketing group. I bought Keap CRM and need some help."
Me: "Oh, really? When did you buy Keap?"
SSE: "Oh, about two months ago."
Me: "Oh, really? Why didn't you buy it from me?"
SSE: "Oh, my partner got a really good deal at the end of the year...but we skipped the training and now we need help."
Me: "No shucks, Sherlock. So you know I sell and train and support people on this software, yet you bought it somewhere else to save a few bucks? Now you've paid for the software for two months and you're not using it and you need help. Is that correct?"
SSE: "Ahhhh...yeah...?"
Me: "So let's do some math:
"Let's say you saved a whopping $800 off the Kickstart... (Back when it was $1,200 to $2,000.)
"Then you literally just donated two months on the software you got for cheap but didn't have the motivation to learn and implement right away. That's $300/mo x 2 months = $600 donation.
"Now you're coming to me for help that is going to cost you at least another $500 more and you will have to pay $200/mo for access to the live weekly training I give to my Keap CRM and HubSpot clients for free.
Related Post: An Abundance Coach Said I Was Too Expensive
"So by 'saving' $800 you're out $600 + $500 + $2,400/year = $3,500 - $800 savings = $2,700 loss...
"But it'll take another month to get you where you should be, so add another $300 to your total loss, which comes out to $2,700 + $300...
Your partner has 'saved' you a negative $3,000 while setting you back three months, which means you also lost three months of opportunity costs!
"Let's say you do $20,000 per month in sales.
"With properly optimized sales and marketing automation in place, you could expect to grow 30% in 90 days just by capturing the money falling off your table.
"30% of $20,000 = $6,000/month. Multiply that by 3 months and that's $18,000 of additional top-line revenue you let just vanish into the night.
"BUT WAIT! THERE'S MORE!"
"If you have just 33% margins, that's $6,000 of bottom-line revenue that would've gone into your pocket if you had your house in order!
"But your partner just let that all go away by making an impetuous purchase under the auspices of saving a few bucks.
"Now that $3,000 loss is added to the $6,000 loss, which brings us up to $9,000 in lost time, money, and opportunity costs.
"BUT WAIT! THERE'S EVEN MORE!"
"Have you ever calculated the lifetime value of a customer? Let's say it's 3x their initial order...
"If you have $6,000 in lost sales to date and those customers would've either spent and/or referred clients to you that would bring in 3x more in sales, the grand total loss to your business in net income is really $18,000.
"So your 'savings' of $800 is more like a loss of $21,000.
"BUT WAIT! YES, THERE'S EVEN MORE!"
"I also give my clients a copy of my Infusionsoft book, which sells for $49.99 (plus s/h.) You also get my Find Your Sales Pro program ($397 value), my professional selling course (it was $1,999 back then), and several other goodies.
"So your 'savings' cost you at least $23,418.99 in lost time, training programs, opportunity costs, and lifetime value of your client.
"BUT WAIT! BELIEVE IT OR NOT, THERE'S EVEN MORE!"
"And it cost you
"Wasn't worth $800 more!??"
(It's enough to drive a man to drink.)
When you're shopping for
However, when it comes to professional services, pay professional prices and run your business like a professional because the help you get at 20 or 30 or 50% off is not the same help you get when you pay full price.
Pay full price and expect—and demand—full service.
You'll thank me when we're done.
Wanna discuss working together on Infusionsoft, HubSpot, or any of your other growth projects? Contact me below and let's get it scheduled.
Then come back and leave a comment below and then share this post with a friend whose cheapness is limiting their growth.
Now go sell something.