Pricing Design Work & Creativity

Two million dollars. What does that mean for you in terms of income? Before earnings? What is this for you? Oh, now I know, it's 20 million dollars. So I take that number times 20 and I know it's a $400 million company. See how I knew? Now, here's the thing: I don't have to do complicated calculations... ...because as soon as I talk to another entrepreneur, they feel comfortable talking to me about numbers. "Oh, Chris, we make $8 million a year and those numbers are it! We don't need to worry about that." I say, "Cool, that's what I thought." (Music) But the thing is, I helped them realize the process they needed to focus their energy on.

Ok, so look at this guys. If we grow the business by 5%, it will equal $20 million in revenue, well, with a gross margin of 65%. 65%...whatever that number is...that's a lot of money. There are at least 10 million. It's probably something like 12 million, okay? Even if we fix the website, you will make a net profit of 12 million dollars, that is, a gross profit, 12 million dollars. Is that true, Miss Agent? How much money should we spend building this amazing new e-commerce platform? If you are going to make a total profit of $12 million, how much money should we spend to build a better site?

What is its value? Whatever you take, whatever it takes. Sort of, but the number was removed! Yeah... yeah, like 10% of that. 10%? 10%. So let's spend $1.2 million to build him a new website. are you OK? I am incredible. Who here builds a website? Okay, I'll call Sean. I'll hire him for... How much do you charge? Not that I know it, but throw something out! What will you do me? "Sean, I have a job. A big client. How much are you going to charge me?" Today, yes, yes! Six thousand dollars. I'll pay Sean $6,000, he'll be happy with it, and I'll make the difference between these two.

That's all. Oh, I mean... they'll pay me $1.2 million. I am a businessman. I will find someone who will make you the best person I know. I will pay the full fee. Without negotiation, I will pay you full price. It's an idiotic rate. (Laughs) And I make the difference. Gabriel. So now I'm the customer. How can you guarantee a 5% increase? I can not. I didn't guarantee it. I'm just asking you a question, okay, but I... no... I can't guarantee that. ...I'm not convinced that site creation will increase by 5%. Well, what number makes you happy? What is a realistic goal?

It is neither an optimistic nor a pessimistic objective. So... but... but... what do you say if a client... a client never tells you to come back to you? Have you asked this question in a meeting? How can we guarantee this? I cannot guarantee results. So if this is the risk again. If you want a guarantee, I'll kill you with 3 million dollars. Do I guarantee you will? I will do that! I just... I'm triple the price. I will give you a guarantee for 3 million. I can estimate it for 3 million, I'm sure. So, if it doesn't go up 5%, will you give 3 million again?

That? I am waiting. I am waiting. There is a lot of laughter on this side! what is this? If it doesn't go up 5%, will you give 3 million again? indeed! Is this the correct warranty? Yes, I stand behind my

work

. Why do you think it will be like this? Because I'm good. Because then I'll hire Al Martinez to do the data analysis for me. I'm hiring 3 Seans. Give me the best job guys. Let's study this. Let's figure it out. We can modify. You know... you don't know this, but I'm a Capricorn... ...which means I believe in constant improvement.

That's what my therapist told me. Constantly improving all the time. A 5% increase over a certain period of time is very feasible. So here's what I'm going to do: I'm going to have my lawyer draft something. Ask your lawyer to review it. Let's see if it passes mustard, whatever, and if it's good, then we move on. However, here's what I'm going to say: Let's give it a realistic timeline. If I get to half, I win half. Because any percentage greater than 0 is better. It's money in your pocket, right? So if I were to make you this offer today: If you give me 50 cents, I'll give you a dollar.

Would you make that deal? Yes really. What if I said: You give me 75 cents and I'll give you a dollar? Would you make that deal? Of course you would! That's a 25% return on your money! What are you getting in the bank right now, like 0.01%? 25%... I asked this question to a crowd in Las Vegas... and he said, "No. No. It depends." I say, "It depends on what? If you're crazy? If you're still breathing?" Why wouldn't you do that? All businessmen believe in that. We put our money in the bank all the time to earn a small percentage.

We hope that the stock market will give us a return of 4, 5, 6%. If I tell you to spend 75 cents to earn a dollar, which is a 25% return, or whatever, that's not the right math, but... ...that's valuable to you! I think I can move this. I'll prorate this! What do you think of a deal? Good business. One of the most valuable things I can tell you right now. You sell what you make. I sell what the world can do.