– But anyway, let’s jumpinto the meat of things’ effect as someone who’sa service-based business, my work, I don’t sellphotos, I sell photography, I sell videography, I don’t sell the videos. And I’ve always struggledin my small-scale little head of how to productize that and how to busines that effectively.- Can I just say something? You don’t even merely sell photography or photos or videos or anything like that. You actually sell how people feel when you deliver that video to them.- You’re right, you’re right. And that’s how I busines it. It is that empowerment. It’s that difference andit’s how you establish that. But I repute a lot ofpeople out there struggle, specially service-based professions, struggle like crazy how to productize it. And you say it’s that classicthing of charging per hour. What’s your hourly rate? What’s the actual, the products instead? What could you sell that? How do you turn a service and something that’s a bit wet and not actually a business into something that’s infinitely saleable? – The trick to it as it were, the framework for itis actually just about, first of all understanding the difference betweena product and service.So services are alreadysold sort of hourly pace, go for fund, period rate, however you want to wrap it up and there’s a fair value exchange there. You offer an hourly proportion, you get something back in return, but sometimes as a service provider, I hear it all the time, like if you feel like you’ve sold a little bit of your feeling to somebody when you sell an hour of your life’ stimulate effectivelythat’s what you’ve done, you can never get that back again. But produces, one of the key things is like concoctions have like a really clearlydefined set of peculiarities they are typically like delivered in a finite reporting period, like Amazon, one click, it’s there tomorrow. And the final thing is the fact that it has a fixedprice associated with it. So imagine if like baked beans were sold on the length of timeit took you to cook them and smother them onyour toast and eat them. You know, you’ve got ababy that it takes an hour to feed them some baked beans on toast versus adults, it’s like eck, done.How do you quantify it? It really wouldn’t make sense, right? What you’ve got to do is you’vegot to linchpin like pricing again to three things very simply. So what is the remarkableoutcome or result that your service is gonnadeliver for that person? How’s it gonna leave them feeling, okay? The second thing is can we deliver it in a period of time? And the third thing then is like how much arewe gonna charge for it? What’s the specified fee for doing that? Okay, so I’ll give you an example.So my business was awebsite design business. So you’re in the market for an internet site. I come along and I’m gonnasell you an internet site, okay? We concur roughly what facets we want. We want a circular style website and a blog and a bitof e-commerce on there or something like that. I reckon it’s gonna takeme 20 hours to get it on and I charge 50 pound an hour. Cool. So I be done away with and I startbuilding out the website and three months later, I is coming and you’re like, why is it three months, what? And it’s like.But I forgot to tell you Stuart, I haven’t been doing it very long, I’m not especially good, layout sciences aren’t great and I’ve had to exactly learn on the number of jobs and you’re paid under it basically. So I deliver the site and you look at it and the blogs not there, the e-commerce doesn’t properly make and you’re like, “Robin, this isn’t finished.Can you do some more cultivate? Can you finish it for me? ” And I’m like, “Yeah, but it’sgonna be an extra 10 hours and you’ve got to pay for that. Is that cool? ” So hourly pace is essentially unethical. Now most people wouldn’t do that. They wouldn’t accuse you extra. But the mere information that somebody could just bump up extrahours and bill you for it is said that hourly ratesis fundamentally shortcoming, it’s fundamentally unethical. Now on the flip side, we’ve then got Dave. Dave comes along, he hasn’t met Robin, he doesn’t know Robin’s pricing knowledge and how business worksand things like that.So he’s also charging 50 pound an hour. He’s been doing it for 20 years. He’s brilliant. His websites are gonna getyou like 20 produces a month within the next three months. But he only indictments 50 pounds an hour but he’s really good at what he does so he can get it be done in order to 10 hours. So how come if Dave’s betterand can do it more quickly why should he get paida third of the expenditure as the first entanglement decorator who’s less experiencedand everything else? It doesn’t work out.Now we bring in Hannah. Hannah’s like world-class entanglement decorator. Okay, she builds themost beautiful website, she’ll get it done for you in three days. It will be guaranteed to deliver 15 to 20 solid leads for you each and every month. But “youre asking me” how muchthat website costs you and I’ll tell you it expenditure 10 majestic. Hannah though is that confident in her ability to deliverthose results for you because each new photographyclient to you is worth 5K. So she’s gonna be extradite 15, 20 solid guides each andevery month, 5K buyer, penalties you 10 K to get her website done.So she’s that self-confident in her ability to deliver that arise, she’s gonna offer youa money back guarantee. And if she can’t do it within 90 epoches, 15 to 20 leadings a few months, 90 daytimes, she’s gonna pay you a thousandpounds for wasting your time plus give you all of your fund back. – You’ve hit two like ridiculouslykey things here for me. Firstly, affection. It’s selling the difference that you’re gonna offset to someone. That’s what you need to time. That’s what we all need to do. But that guarantee and that confidence which comes from experience and it comes from knowing that you’re damn good at what you’re doing and that’s why you’remarketing it the lane you do, human, that constructs the world of inconsistency and you can charge whatever you want then, that’s the point. And yeah you won’t getit right all the time and yeah, you might go outand situated it as a 10 K responsibility and you won’t get the number of jobs, but you might get the next nine or you might need to adjust it slightly and move with the market forces.But yeah, you’ve gotta be sensible. But I desire that. It’s ridiculously simple, mate. I’m kicking myself now for not having done it year ago. – Well, I also didn’t let you know. It’s like Hannah neverstarted out charging 10 K. She’s been through whatthe firstly entanglement designer did, she’s been through and donethe same as what Dave did, she met a coach, “shes working” all of this material out.When I said 10 K to her, she was like internationalsigns of stress, “What? Can’t maybe blame that much.” So what we did is we said, “Well, actually, let’sstill elevate your cost so you’re more expensivethan everybody else but let’s start at two and a half K. Are you cozy with that? ” “Yeah, I recall I can justabout unfold to that.” So she pitched 10 beings, got two yeses at two and a half K. Over the next four to six weeks, she pitched another 10 people and we incremented the toll to 3K, we incremented the priceto 3.8, then 4.5, then six, then nine and then finally 10 K. So we never just go out and really blast out at that price time. What I always do, I do like a Dutch auction with my consumers. So we’ll start, we’ll pick a numberthat’s comfortable to them and to be going above it. And then when they go out and lurch and sell a few of them, I’m like, “Right, are you ready? Should we do another auction? Okay, you’re disagreeable there.We’ll see a little above that.” And so gradually you juststart to increment it. It’s like Tony Robbins never used to go and started accusing a milliondollars like 25 years ago for his coaching. It’s taken him, he’s had to go through all of these, I call it the pricing bandwidth. He’s had to go throughthe part bandwidth modeling in order to be the only guy out there charging a million dollarsa year to work with him. What most coaches, consultantsand freelances don’t realise is that right now theycharge what they’re importance. Tomorrow, they cancharge a little bit more. But one day they could be charging like an extraordinary amount. It’s just they’ve got togo through the motions in order to get there. – Absolute key. Right, I’ve already got your website and I’m already in the Facebook group so I’m gonna be paying attention to what you’re putting out there’ start you’ve really triggered a couple of ideas in my thought, mate, for how I can move mybusiness forward in this year.I’m genuinely interested, genuinely interested tosee how this can work and what divergence it is feasible originate to me and my little business sitting outside Birminghamin the middle of the UK ..
