How To Charge 10x More (& Why You MUST!) - Premium Prices 101
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You're going to have better customers, a better experience. You're going to be able to make more per piece of energy or per piece of ad spend generally, because it's the same effort to sell two different types of customers. And over the long term, you'll actually have a more stable business. Even during the recession, when you've looked at past recession and economical shifts and dips,

Riders that charge premium prices still do well. My name's Rudy Moore, host of Living the Red Life podcast, and I'm here to change the way you see your life in your earpiece every single week. If you're ready to start living the red life, ditch the blue pill, take the red pill, join me in Wonderland and change your life.

Hey guys, welcome back to another episode of Living the Red Life. Today we are going to talk all about prices, higher prices, charging more, how you can make more per customer, all that fun stuff. And let me tell you, charging more premium prices, higher prices has been a life-changing lesson for me in business. And I've learned this from running multiple companies.

I've learned this from thousands of companies that I've managed under my agency. And I've also learned this from some of the most successful entrepreneurs in the world and by studying the biggest billion dollar brands in the world. Now, charging premium prices is going to transform the way you see business. And at the end of this episode today, I really think you'll be like, wow, there's a whole...

slow at benefits for charging more and there's very little benefits to charging less. Now let me be clear, this doesn't mean your entire business has to charge premium prices, it doesn't mean you can't have anything cheap. In actual fact, I have lots of cheap stuff, stuff that's crazy cheap, but then I also have lots of expensive stuff, stuff for 100k, 150k, 200k. So I have that whole skill and we're going to talk about that. But at a

fundamental core, one of the most important things to understand, and I've learned this after 10, 12 years selling stuff, is that over time you realize your best paying clients are generally the ones investing the most. And especially running like service based companies, I found that when I charge $500 a

$2,000, $5,000 and $10,000, you get more stress and headaches from those first two, the $500 and the $1,000 and the $2,000, than you do the $10,000. So there's always a massive discrepancy about price positioning and the amount of effort and energy it takes. And what you'll learn over time is it's just as much energy and effort to sell a $10,000 product

as it is to sell a $500 product. Like literally, it takes as much marketing and promotions and sales calls to sell a 500 or 1,000 product or a 5K and a 10K product. And then additionally, those clients generally in the 500 and 1,000 will give you the same amount of headaches, if not more, than the 5 or 10,000

But the difference is you need 10 times the amount of the lower-priced people to even make up one customer in the highest. So in theory, you're getting 10 to 20 times more headaches per 10 grand in revenue. And this is true for e-commerce, right? If you sell cheap stuff, you get the worst complaints. If you go into Walmart, right, you're going to see arguments and fights in there and people lining up in customer service about,

a $2, you know, a refund for 30 cents because something was on sale and they didn't get the sale price and it costs them 30 cent more. You're not going to see that in the premium shops. They just go, I don't care because it's a different type of customer. Service is generally better. Premium companies can charge more, but

and in turn they can hire better people, they can have a better premium service, they're less busy. So there's so many benefits of upping your prices and having higher ticket offers within your brand. So we're going to talk about all that today. But at a fundamental core, you're going to have better customers, a better experience, you're going to be able to make more per piece of energy or per piece of ad spend generally, because it's the same end to sell two different types of customers.

and over the long term, you'll actually have a more stable business. Even during the recession, when you've looked at past recession and economical shifts and dips, riders that charge premium prices still do well. I know that sounds crazy, but riders like Louis Vuitton, Gucci, Design, Lamborghini, and Ferrari, those brands that are super premium, they think, "Wow, they're gonna struggle in a recession. No one's buying Lamborghinis during a recession. No one's buying Louis Vuittons."

In fact, the opposite is true because generally the rich people during recessions don't get as affected as the poor people. Poor people and middle class, working class people during recessions get affected the most. So you actually find the lower price companies struggle even more whereas the premium price companies don't and this is very important because right now the

economics are pretty much all over the place and I'm not here to say if there's going to be a big recession or not, if we're already in one or not, but it's going to be an interesting couple of years. Really important to understand that premium prices have a lot of benefits. Hopefully this intro has established that. So now I'm going to talk about different ways to charge and

position your company to charge premium prices. So one of the most important things is what we call in my world an ascension model. And this ascension model means how do you take someone from knowing about you, to liking you, to trusting you, to becoming a raving fan, to being a purchaser and a repeat purchaser and then purchasing more and more and more.

And this is the life cycle generally for a lot of companies. They might have free products, they might have cheap products, and they have more expensive products. And if you go into many e-commerce brands, they do the same. If you go into high-ticket coaching, they do the same. If you go into agency, they do the same. So generally, every company will have an Ascension model.

A lot of you right now are struggling for two reasons in your business. Number one, you don't have an Ascension model. Number two, even if you did have an Ascension model, you don't have a proven way to drive customers into the entry point to then take them through the Ascension. So fixing those two things in your business is super important.

Number one, what does an ascension path look like? Number two, how do I drive enough traffic into those entry points and even drive people straight to the higher ticket price, which you can still do, and then that will help you scale your business. And that's a different topic for another day, and I've shot lots of content and podcasts and all that jazz on customer acquisition and how to scale your brand with marketing, and that's obviously what I do. So...

First thing, figure out the essential model. Easiest way to do that, right, just to break it down for today, I could do a whole hour on this one topic, but I'm obviously just going surface level, is low price, medium price, high price, and then ultra high price, okay? So four tiers. You have three tiers, typically low price, medium price, high price, but I always like a fourth, ultra high, which is your VIP, VIP, VIP, okay? Now, how that might look depends on the brand and the product you sell, obviously. If you are selling e-commerce,

that might be one single supplement bottle and then the median price is a bundle and then the higher price is a bundle plus some personal training or coaching or something like that and the super bite vip is hey it's 10 grand for the year you get all your supplements you get all your nutrition you get all your diet and we're gonna be your personal we're gonna send meal plans to your house you have to pay for the meal prep but we're going to

organize it all with them. When you go on vacation, we're going to get it sent there. We're going to do custom meal plans. And when you go to restaurants, we're going to tailor it to you, right? So you see the difference there. $30 bottle into a $200 bundle into a $1,000, you know, coaching sort of supplement offer into everything.

a ten thousand dollar offer in normal coaching and say in my world marketing wild this could be a twenty nine dollar product into a 297 into a 5k and then into a 50k so you got super VIP right so you got that look for ascension another agency model could be a nine dollar tripwire into a forty nine dollar a month and then you might have your free grand a month agency okay so that would be your free and then you might have a ten grand

Super VIP where you do everything for them. Okay, so lots of different models if you're a coach consultant that model is pretty typical to I just said sub hundred dollar and then medium maybe 500 a thousand maybe two thousand then maybe five thousand then super VIP Whereas maybe some one-on-one and stuff like is 10 15 20 K. Maybe even more so Ascension model Okay, and here's the best way to look at this

Number one, right, is basic product. If it's in coaching and consulting and anything marketing or education, it's basic product in e-commerce or in this coaching world or education world, it might be education based on their result, right? So say someone wants to learn Facebook ads. Well, this is just a course on Facebook ads. Medium ticket.

is generally for the e-commerce. It might be a bundle, multiple products, maybe a year supply. If it's clothing, it might be a whole outfit, for example, right? And then if you go into like coaching, education, software companies, software companies might be like ClickFunnels where, hey, you get a year and you get all these extra perks or you have your, hey, it's 297 versus 97 on the basic plan. And then in coaching, education space, it might be for $30 you were learning how to do Facebook ads,

For $500, you're gonna get live calls where we're gonna help walk you through it. It's gonna be some personalization, some feedback, and you're gonna get a bunch more training videos, or you're gonna get a live event. So you see there's some more like interaction in there of some capacity and some maybe done with you or support, right?

And then the final one, right? Say you've got your 5K for I'll keep with Facebook ads and coaching for now. That might be, hey, we're just going to run your ads for you. And then the ultra VIP at 10, 15, 20K might be, hey, we're going to do that for a year and you're going to pay for a year. Or it might be, hey, we're also going to do your email marketing, the videos and the images and everything you need, right?

So that's that model. Ecolas, I gave you some examples too. So basically it's education, then it's done with you, then it's probably done for you. Like that's a really simple model for all of you to understand. Low ticket is education or conceptual like, hey, this is the basic industry. This is how it works. This is some conceptual stuff. The middle tier is like, hey, this is some done with you or some more copy and paste systems or some worksheets or something interactive.

And then the high ticket is, hey, we're doing some of it for you. We're going to give you some of it on a plate. And I could do a million examples. If you want to be an author, right? First one, $49, learn how to write your first book and publish it. Number two is learn how to write your first book. And you're going to get a weekly drop-in session where we help you write it, tweak it, and critique it. And then we're going to show you guaranteed how to get it published as a bestseller. And the next one, high ticket, is, hey, this is $5,000. And we're actually going to write the book for you. We're going to go write it.

and transcribe voice memos and stuff. And after that, we are then going to manage all the publication and guarantee it's a bestseller. And we're going to help you promote it. We're going to build you a landing page.

Social ads, images, video ads. We're going to handle the printing. So you know how to print it, where to print it from. We're going to do the front cover, the back cover and all that jazz. Right. And I could spend another five hours and give you a million of these examples. That's what I do all day. But you guys get the idea. Right. Literally do this live with clients every two minutes when they come in my dropping sessions.

Whoa, whoa, whoa, wait a second. Before we go into the rest of this episode, I'm gonna interrupt abruptly and just ask you one big favor. I hope you're getting a ton of value, a ton of knowledge. I hope you're getting some breakthroughs from myself and the guests. And I want one thing in return. What I would love is for you to subscribe and leave a review. The reviews and the subscription grows the podcast. It allows me to bring you even better guests. It allows me to invest even more time and money

into this podcast to bring you the latest and greatest, the best entrepreneurs from around the world that are crushing life, crushing their business, and giving you all the tools, the mindset hacks, the knowledge, and the environment you need to be successful. So do me a favor, if you've got any amount of value from today's episode so far, or any previous episode, or any of the content I've done, it would mean the world to me if you hit a five-star review, give us your feedback on the show, the episodes,

and subscribe and download. Plus, if you do that and send me a screenshot on Instagram @rudymorelife, I will send you a bunch of my free training, marketing courses, sales courses worth $499. Yes, $500 worth of courses.

for a simple 30 second review. It would mean the world to me. Send me that screenshot. I would love for you to leave that review and I would appreciate it very, very much so we can keep growing this show and make it awesome. So let's get back into the episode. I appreciate you guys and let's dive back in. So first thing essential model for premium prices. Next thing is mindset, okay?

Big thing behind charging premium prices is actually your mindset as an owner. And what I found after, you know, 10 plus years doing this, and especially the last five or six years helping hundreds of people do it, is the reason you don't charge premium prices right now is two things. A, you don't know you can. B, you don't believe that you can, right? So you can't bucket those into one.

And number two is you don't believe it will sell because you're not selling much of your current product or how it's currently priced. And logically in your brain, which is how my brain used to go to, which I agree is, "Rudy, if I can't sell something at $97 or $100 or $500, there's no way I can charge $5,000. I can't even sell my current product." Now listen closely. The reason you can't sell your current product isn't because the price, okay? It's because you haven't done the right marketing, landing pages, ad copy.

offer, you're not the unique selling point, you're not promoting it correctly, you're not running ads correctly, you're not building out the hook and the guarantee and all the things I teach, okay? So it's irrelevant whether it's $50, $100, $500, $5,000 or $500,000. If you're not doing all the marketing correctly, it's not going to work. So it's not like, "Hey, I shouldn't charge high prices and I can't sell the current Bing." It's no, you need to fix the problem with the current Bing and then you can charge low prices and high prices.

So two reasons you're not charging high prices that you can fix today instantly by listening to this episode. Number one is understanding you can, okay? And empowering yourself and understanding you are worthy and your product is worthy and people will pay it, okay? And then number two is fixing any...

that's suffering you promoting it because it doesn't, you can't, it's not good to listen to this and go, Rudy told me to charge 5K now, well, I'm charging 5K and then you're going to come back to me in a month and say, Rudy, I charged 5K, I haven't sold anything. Show me what you're doing to market it, promote it, landing pages, ads, blah, blah. And if they suck, they suck, okay? So this isn't a magic wand, but if all the good marketing principles are in place, then this can be very impactful. So get through the mindset sub and then build the mindset

you know, the following the marketing assets to promote it. Okay. And then the only other thing, like I said, is kind of part of the essential model is just make sure you've built a clear distinction between all the different products. So especially if you have different products now, okay, make sure there's a clear distinction. And one of the mistakes I find people fall into, especially in like education, coaching, consulting, marketing is,

Hey, I can get this for $50 and the 505k stuff doesn't seem that different. If it doesn't seem that different to you and other people, it's not going to work on cold traffic, i.e. people that don't know you. So it's really important that you make your life a while different. I just did this. I'm partners with Les Brown, big, famous motivational speaker and

kind of one of the best in the world when it comes to mindset and he's very famous if you don't know who he is. We've just built out a bunch of new offers and stuff he's sold over the years that we really broke down all the distinctions and the point is every single offer and product you have should be mind-blowing. So it's like, wow, this is crazy for $50 and then holy cow for $500 I get this and then

"Wow, 10 grand, I can get this." Okay? And if you're not doing that and you're not keeping that wow factor throughout, then the higher ticket stuff won't sell, it's the lower ticket stuff's great. And then if the lower ticket stuff sucks and the higher ticket stuff's great, people won't see the higher ticket 'cause you're not getting customers on the lower ticket, right?

So make sure you have clear distinctions. Next thing that's really important with higher prices, market research. So pretty much every business model out there in some capacity is already invented. You've got to understand that. So right now we're in a stage of the world and history where...

very rarely you're inventing something new you're just taking an adaptation of something that already exists and that's really important to understand because for every every single one of you listening right now if i got if i lined up say there's 10 000 listeners each week right if i lied you up all 10 000 of you and i went through literally every single one of you right so it took me two months

Out of 10,000, there's probably like 10 of you that have these weird business models that don't have coexisting business models in different industries that I wouldn't really know what to do. And for those 10 of you, I'd probably say, look, you just like, you got to change to something. This isn't going to work. It's the make sense, right? Generally, all of you will have other people already doing this in your industry. If you don't, maybe out of 10,500 of you, so 5% don't, or maybe even less, maybe 100%.

Then there's parallel industries that do similar stuff, right?

So say you're a volleyball coach, right? And you're teaching volleyball tricks and you've got really niche and you're teaching volleyball training for high school girls that are under five foot tall that have ginger hair. OK, I go, well, maybe you're the only one, OK, in that niche. But there's lots of volleyball training coaching programs. And you go, really, there isn't any. I go, OK, sure there isn't.

There's lots of tennis coaching programs and golf and soccer and basketball. And they are very similar. Like literally you go, let's pick a basketball funnel and product and offer and coach that's making millions online selling it. Okay, look what they do. They have these $7 little tactics where it's, hey, learn how to, you know, if we go with basketball, learn how to dribble, learn how to drive, learn how to dunk, learn how to shoot free pointers. They have all these different little low ticket challenges. And then we go...

What do they do after? Well, everyone that joins after goes in a $49 program and then they membership site and then they get sold on a two nine nine VIP yearly thing. Okay. So we're going to do the same view. Okay. And then what happens after that? Uh, well they have this, um, camp every month. It's two K for a weekend camp and, and you get a bunch of products and all this other stuff too. Okay, good. So let's do that for you.

And then what else is it? Well, for 5K, you go spend a week and you work with the owner who's this super famous person, the famous basketball coach. Okay, great. We're going to do that for you too. So you guys get the idea, right? It's a volleyball to basketball, but the model is the same. All the models that whatever you're trying to do out there already exist.

The reason I'm telling you this today is if it was me, I don't need to go copy other models because I know all this after 10 years, but most of you don't, right? So I can't sit with all of you, sadly. I would love to. It's passion of mine. I love this sort of stuff. But what all of you can do, which I'm going to give you a 90% chance to success versus you just trying to guess yourself, is looking at studying million dollar success. So if you

go out there and find free people making millions in your industry or parallel industry, I'm gonna be way more confident that you're closest to the mark than if you just made it up yourself. No offense, right? Some of you are great, some of you aren't marketers and that's okay, right? So go find parallel industries,

Because if there's multiple people making multiple millions of dollars and they all have multiple steps and offers, then you, non-marketer you, right? Imagine you're not a marketer with high confidence can go, okay, this is the way to do it. And I actually use this principle in many aspects of my life that I'm not an expert in, right? It's a great rule of thumb. I won't go off on a tangent, but imagine you're trying to build a,

a house and the front door is built this way, what I actually do when I find new stuff in life that I'm learning is I go look at how is everyone else building their front door? Well, they all have the hinges this way. They all have the little, you know, the doorbell here. They all have an inch gap at the bottom with some ceiling. I'm like, okay, well, if I have zero clue, I'm not an expert building houses and doors. I'm going to just do that because all these houses do that, right?

and then at Home Depot and all the stores they will sell it that way. So this can be applied to marketing and it's so simple and most people just don't do it. They just guess and figure it out and then it doesn't work and they wonder why. So model success whenever you can. So to summarize today guys,

Premium prices, building an essential model, planning what you can do, knowing your avatar, what they want, knowing your industry, doing your market research, getting over limiting beliefs in yourself that you can charge premium prices and then figuring out the marketing and sales to promote all the different tiers.

Here's one thing I didn't mention that I want to make clear. People are going to enter at every single tier. So some people are actually going to enter at the low ticket and they'll buy the low ticket, then the medium ticket, then the high ticket, then maybe the ultra high. So they're going through the typical ascension model. But some people in life just go, hey, I don't want the little things. I just want to pay for the biggest thing. And I do that. Rich people often do that many times. That's what successful people do. They go, hey, I don't want the small stuff. I'm just going to pay you the big money for the best stuff, right?

So you want to have an entryway and a door, i.e. promotions and advertising material and ways that people can see it if they want to go straight to the big thing. You don't need to hide it anywhere. It's not a bad thing that you have this premium price, okay? And if you look at car dealerships, right? They'll have the cheap cars and they'll have the most expensive cars. And often in sales, if you actually speak to sales reps, they actually do the reverse. They say, hey, well, this is 100 grand. Well, you clearly can't afford that. But then we have this for 50 and this is coming. We clearly can't afford that.

and then they take you to the $1,000 thing. So they actually work you backwards when selling because what they're doing in psychology is called a price anger. They're angering, "Hey, people really pay 100 grand to work with this company, and they have these 100 grand cars. People are paying 100 grand for these cars." Well, for 50k, that car's half the price, and all it's missing is leather heated seats, and the interior is not as nice.

And then, oh my god, for 20 grand, it still looks the same on the outside, and just the engine and all the stuff isn't quite as fast, but no one's really gonna know how fast it is unless they're a car guru and they know the difference between a V10 and a V8, right? And all this stuff. So now for 20 grand I can get this car that's like a 100 grand car, and it's 20 grand, it's five times less.

and you see how powerful that is right because they're comparing themselves to the 100 grand car whereas if they started on the lowest thing and they go and i'm not again i'm going off on a tangent on sales a little here but if they start at five grand and they go and then they go 20 grand they go how is this car worth four times more i just want to drive from a to z i don't need to pay 400 more to drive a car from a to z to work every day that's ridiculous i'm just going with a five grand car so sometimes it's actually a benefit which is the point of me teaching you all that last part

there's a big benefit to price anchoring on the high level, right? On the high tier. Because when you price anchor on the high tier, then that actually can be great for you because then it's easier to sell the lower stuff and it shows your brand off as a premium price. For example, to finish, if we walk into Ferrari and Lamborghini, we pretty much all know as a society, you're not going in there to get a 20 grand car. The car's going to be 150 grand used, 200 grand used, 200, 250, 300, 350, 400 and more.

for brand new, depending on the car. So they already have established what it costs, which is great for them because they don't get bad, well, they still get some bad leads, people want it to test drive, but they generally get good qualified buyers. That's what you want. You want qualified buyers, right? People that save up their entire life for a Ferrari.

and a Lamborghini and people that save up for their wages for a Louis Vuitton bag when they turn 18 or 20 and they get the first job and whatever, right? So they've built this premium pricing thing for their business where people are saving up knowing the price and they're actually saving up for it. So just to finish and leave you today, think how can I do that for my brand? How can I be the Louis Vuitton and the Gucci and the Lamborghini and the Ferrari and make people know my price and make it so premium and so luxury

and so VIP and so world-class that people are saving up to get into that tier. That is the holy grail for a lot of us here today and that's something over time, right, that's more advanced, you should be starting to think about. But to start, I've given you all the tips and systems. This is everything we walk our Mastermind members through over a year and we help them build in all of our programs and some of you are in them and you know because we've done that with you and if you're not,

Happy to help you on that too. Just hit me up on Instagram. You can ping me with your Ascension model, what you just learned today, and I'll take a look at it, send you a voicemail in the back or a few bullets. But I hope it helped. And I hope most of you can start charging premium prices and more prices. And of course, you need an amazing product and service to go with it. That obviously goes without saying throughout this show today. And this lesson today is obviously don't sell crap for high prices. That's unethical.

cool. Okay. So that's a wrap guys. That's how you charge more so you can add more so you can have your dream life. Keep living in Wonderland, which is what the red life's all about. And I will see you guys very, very soon. Until then, charge more. Take care. My name is Rudy Moore, host of Living the Red Life podcast, and I'm here to change the way you see your life in your earpiece every single week. If you're ready to start living the red life, ditch the blue pill, take the red pill, join me in Wonderland and change your life.