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Join us this week as we sit down with Dale Furtwengler, author of “Pricing for Profit: How to Command Higher Prices for Your Products and Services.” Dale brings his wealth of knowledge on pricing strategies that help businesses command higher prices without losing customers we want to keep. We’ll discuss key takeaways from his book and explore the psychology behind pricing, how to convey value effectively, and why most businesses leave money on the table. Don’t miss this opportunity to learn how to maximize your profits with smarter pricing tactics!
Our regular listeners know this, but 2 Regular Guys are all about garment decorating, a bit of fun, and no rants, lectures, or selling. 2 Regular Guys was not created for our employers but rather for our industry. Since February 2013, The 2 Regular Guys have been the first and the most listened-to garment decorating industry podcast on this planet! We are humbled by all of you tuning in each week. We work hard to bring you information that will improve your business and our industry. Take a look at our incredible weekly guest list, and you’ll understand where this industry goes for news, interviews, and the heartbeat of garment decorating. Thanks for listening!
Ready to have clarity and confidence in your business? Attend FUNdamentals Live on October 10-12, 2024 in O’Fallon, MO.
News
If you have anything newsworthy you would like us to share, please email details to info@2regularguys.com. Use the subject line “Weekly News.”
Dad Joke
Aaron: Wanna hear a joke about paper?
Never mind – It’s tearable.
Pricing for Profit
Aaron: Welcome to our show. I’m excited to talk to you as I would consider you a mentor of mine. I’ve probably told this story on here before, but Dale was the gentleman who said to me “You can’t outgive the Universe” and it shaped how I operate. But for our listeners who don’t know you as I do, can you give us a short biography? Tell us the highlights that lead you to start Cutting Edge.
I’m a CPA with national firm experience, followed by CFO positions in a variety of industries, started a business providing fractional CFO services, did a lot of pricing work, and shortly after Pricing For Profit was published rebranded my company to focus on pricing, I’ve now expanded the pricing work to include helping companies gain, and sustain, a decades-long competitive advantage.
Terry: What inspired you to write “Pricing for Profit,” and what do you see as the biggest misconception businesses have about pricing?
I wrote the book because I realized I was only helping a handful of companies with my consulting work. I could have helped more if I had written a book.
The biggest misconception about pricing is that it’s the primary factor in the buying decision. J. Conrad Levinson in his original book, Guerrilla Marketing, said that of 10,000 buyers surveyed only 14% listed price as the determining factor in their buying decision. 86% listed other factors…with price being ninth on the list.
Aaron: What are some common mistakes companies make when setting their prices, and how can they avoid these pitfalls?
They tout their offering as being better than their competitors’ offerings, then price their offering at, or below, their competitors’ price. In doing so they confuse the buyer…and confused buyers always revert to price.
Terry: How do you address the fear many business owners have about losing customers when raising prices?
I ask them “Who are your most difficult customers? Are they the most demanding when it comes to price? What would your life be like if you were able to replace them with more of your other customers?
Aaron: How can small businesses or startups, with limited brand recognition, implement your pricing strategies effectively?
Pricing is a part of establishing a brand. When your price is congruent with the value your offering provides, you establish a brand that buyers trust.
Terry: How do you help businesses show the value of what they offer so they can feel confident in charging higher prices?
There are five elements (1) a clear brand promise i.e. the result the customer will get (2) a psychographic profile of their ideal customer…a profile based on values, behaviors, and characteristics (3) marketing messages that attract your ideal customer and repel those who aren’t (4) sales scripts that engage the prospect in calculating the value (5) producing three budget options along with guidance in presenting the options and language to use when presenting the lower-price options.
Aaron: What signs should a business watch for to know when it’s time to change its pricing?
One sure sign is that you’re nearing capacity in your business. Prices should be raised 3% to 5% annually. These increases are low enough that the customer is not likely to shop your offering, yet high enough to enable the company to outpace inflation.
Terry: What advice would you give to businesses in really competitive markets where prices keep getting lower?
The reasons why markets become highly price competitive are (1) lack of differentiation (2) market saturation. Differentiation is fairly easy to establish…discover what annoys customers and provide a solution. If the market is truly saturated, find another market.
Aaron: Can you share some examples of businesses that used your pricing ideas successfully? What can we learn from their stories?
A hunter-jumper trainer trained both horses and riders to win hunter-jumper events. When she called me she had a 95% vacancy in her barn. Within a month of completing her pricing work, she told me that she had gone from a 95% vacancy to a 5% vacancy. She picked up 25 new weekly riding lessons. She had so many horses for a show that she had to build some temporary stalls. And she was approached to design a hunter-jumper arena.
Another client said that she and her family had always wanted a swimming pool. A year after having completed her pricing work, she installed a professionally landscaped, inground pool.
A client, the day following the completion of her pricing work, emailed me saying that she’d been approached to do a project that she would have previously charged $100 to do. She quoted a price of $500 and got a deposit on the spot.
Another client had an assessment tool priced at $179. I showed her that it was worth $1,250. She said she could never charge that much. I suggested $895 which she said she could do. A week later she called excited at having closed her first $895 deal. Then she said “As soon as I closed it, I knew I could have gotten the $1,250. She raised her price to $1,250.
Terry: When can listeners find the book and learn more about these ideas?
https://cuttingedge-business.com/master-class/
The Secret Sauce
We serve up bite-sized tips for our #regulators to instantly spice up their decorated apparel business. Just like the perfect wing sauce, these quick tips can transform your business experience, adding flavor and depth to your operations. Each video in this playlist is a nugget of wisdom, carefully selected for its potential to bring immediate value to your work. So, whether you’re a seasoned pro or just getting started in the decorated apparel industry, dip into our ‘Secret Sauce’ for insights that can help you soar. Remember, the right tip at the right time can be just the secret ingredient you need for success.
OTHER EVENTS
Achieve Greater Profit with Fewer Sales – Are you ready to achieve a greater profit with less effort?
September 5th, 2024
9 AM Eastern | 8 AM Central
7 AM Mountain | 6 AM Pacific
- Rising Tide Talks! – Wednesdays at 5 PM Central Time and then available to watch any time.
- Small Business Saturdays – Saturdays at Noon Central Time and then available to watch any time.
- Master of Success Inner Circle – Bi-Weekly Mastermind Groups on top of the industry-leading business training.
- Complete Screen Printing Business Course with Atlas Screen Supply in Chicago August 3-4.
- Complete Screen Printing Business Course with Workhorse Products in Phoenix, AZ, August 24-25.
- Demystifying Next Level Digitizing Online Training from Erich Campbell
- Understanding Emblems Learn from Erich Campbell about digitizing for patches.
- The Take-up with Erich Campbell – Fridays at 2:30 Mountain Time
TRADE SHOWS
- Printing United Expo Las Vegas, NV – September 10-12, 2024
- Targeted Success: Finding Your Ideal Customer Sep. 10, 2024 | 2:00 pm – 2:45 pm
- AI Marketing Mastery: Leveraging ChatGPT for Business Growth Sep. 11, 2024 | 1:00 pm – 1:45 pm
- Graphics Pro Expo Indianapolis, IN – October 3-5, 2024
- How to Master Pricing for Profit. October 5, 2024, 11:00 am – 12:30 pm CT
- Impressions Expo Ft. Worth, TX – October 24-26, 2024
- DTG or DTF – What is the Best fit for Your Business? October 24: 09:00 AM – 10:15 AM
- Graphics Pro Expo Charlotte, NC – November 7-9, 2024
- Impressions Expo Long Beach, CA – January 23-25, 2025
- DAX Kansas City KCI Expo Center, Kansas City, MO – February 21-22, 2025
- DAX Nashville Farm Bureau Expo Center, Lebanon, TN – May 9-10, 2025
- DAX Chicago Schaumburg Convention Center, Schaumburg, IL – May 30-31, 2025
- DAX Twin Cities Hilton Doubletree, Bloomington, MN – August 1-2, 2025
All dates and events are subject to change
