Jun 30, 2023
Unlocking the Secrets to Success: Discover the transformative power of creativity, differentiation, and strategic pricing as the guys delve deeper into the concept of "10x-ing" prices. From the link between creativity and income generation to the art of effective communication and leveraging unique labels, this episode unveils the keys to delivering exceptional value and achieving unparalleled success in business. Get ready to revolutionize your approach and create happier, more satisfied customers along the way. The guys break down the role of creativity, AI, the power of labels, time, your unique superpower, and more on this week’s episode.
In this episode, Bob starts by reviewing the previous discussion about the importance of "10x-ing" prices and reveals that they will explore this concept further. Ken connects creativity to price increases, referencing the book "The Science of Getting Rich" and emphasizing creativity as a means to generate income. Bob adds to this by mentioning a study by the World Economic Forum, highlighting creative thinking as the top skill needed in the future. Brad explores the role of AI in creativity, concluding that human creativity and experience are necessary to fine-tune AI-generated outputs. Bob asks the guys if they believe that raising prices significantly while offering the same services is feasible. Ken discusses the power of labels, highlighting the need to differentiate oneself and avoid being categorized based on common expectations. The importance of finding one's superpower and leveraging it for differentiation, creativity, and increased prices is emphasized. Ken shares insights on increasing prices without increasing expenses, particularly in terms of time. Brad explains how his company implements the "10x" method by assessing client satisfaction and excitement rankings. Bob differentiates himself by presenting a larger scope of services and leading with his expertise and experience. Ken adds to this by emphasizing the importance of effective communication of a unique label and highlighting how businesses can provide value in distinct ways. The uncertainty in the business world and economy is discussed in relation to raising prices, with Ken noting that money is infinite while time is finite. Brad discusses leveraging opportunities during recessions and relates them to raising prices. Ken provides tips for preparing for price increases, including believing in their possibility and necessity, and ensuring that costs remain a fraction of the price charged. Bob concludes by emphasizing that charging more money enables businesses to deliver exceptional results and create happier customers. Overall, the discussion revolves around the importance of creativity, differentiation, effective communication, and the benefits of raising prices in delivering exceptional value and success in business.
Top 3 Curtain Pulls in this episode:
Embrace the boundless potential of creativity. Unlock the transformative power of creativity and witness its profound impact on business success. According to the renowned World Economic Forum, creative thinking reigns as the foremost skill crucial for the coming years, emphasizing the immense value of nurturing and embracing creativity in the pursuit of innovation and growth. By cultivating a culture of creative thinking, businesses can develop groundbreaking solutions, confidently raise prices, and achieve unprecedented levels of success. “Creativity is how you get anything. It's an unlimited well to generate income. I would venture to say that thinking about how to 10x your prices is an example of using creativity, not anything else, to generate more income.”
Widen your label scope. The guys emphasize the power of labels and the importance of defining a unique identity that sets your business apart from competitors. By doing so, you can attract the right clientele and charge higher prices. Stand out and thrive in a competitive marketplace by leveraging the value of labels and differentiation. “Just calling yourself an agency puts you into a certain category where certain people expect certain types of things and certain prices and certain ways of engaging with you, and that may not be advantageous to you.”
Expensive = higher quality = a happy customer and business owner. By charging more, businesses can not only allocate resources to deliver exceptional results but also invest in continuous improvement, ensuring long-term success and customer loyalty. Experience the positive impact of pricing strategies that prioritize quality and customer satisfaction. “People are happier when you charge them more money, because it gives you the resources to do an amazing job. That's why you 10x so you can be the best that you can be. And they can be the happiest customers on the other end.”
For more tips, discussion, and behind the scenes:
About The Guys:
Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from from 2000 -2017. He is also the author of 3 books. More on Bob:
Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently that knowledge is being applied to his boutique agency. More on Brad:
Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken:
[2:08] Bob kicks off this week’s episode by reviewing the discussion last episode about the importance of 10x your prices, and reveals that they will be diving deeper into this idea this episode.
[3:15] Ken makes the connection between creativity and price increases and discusses a book he read recently, “The Science of Getting Rich”, and how it links them.”This book was written in the 20s. It's basically all about creativity and how creativity is how you get anything. It's an unlimited well to generate income. I would venture to say that thinking about how to 10x your prices is an example of using creativity, not anything else, to generate more income.”
[5:05] Bob adds to Ken’s discussion on creativity by mentioning a study done by the World Economic Forum. “One of the graphs that caught my eye said, ‘What would you rank in priority, the top skills that are going to be in demand and needed in the next several years?’ And so you're thinking, you know, all kinds of logical perspectives, but the number one thing that they said is going to be needed is creative thinking.”
[7:50] Brad explores the idea of AI and creativity, and comes to the conclusion that although AI is an incredible tool, it’s much like an unpaid intern; at the end of the day, it gives you the rough basis and you use human creativity and experience to fine tune it.“You don't give the interns work to a client, unless you look over it, right, tweak it, change it.”
[9:51] Bob asks the guys to unpack the idea that, “you can't offer the same services and then raise your prices considerably and call it the same thing.”
[11:49] Ken talks about the power of labels, and goes back to the roots of running a business; building wealth, and being fulfilled. “Just calling yourself an agency puts you into a certain category where certain people expect certain types of things and certain prices and certain ways of engaging with you, and that may not be advantageous to you.”
[16:13] Bob touches on the importance of finding your superpower and the role that can play in labeling yourself, creativity, and increasing your prices.
[18:46] Ken wraps up the chat about labels with some insight on increasing your prices without increasing your expenses; especially in time. “The more you talk about things in the labels that are commodities, the less you will be able to do anything about changing your income, your pricing your profit, and you won't be able to decide that.”
[22:52] Brad dives into some of the ways he and his company have been implementing the 10x method and offers some insight. “For us, we have to look at what specific projects or what type of work we can do… The key is for you to have a satisfaction/excitement ranking on your client. You have to kind of diagnose every one of your customers… So maybe the diagnosis is we can't 10x anything on this customer. But we can get them from a satisfaction/excitement ranking of two to a 10.”
[26:36] Bob discusses how he differentiates himself from competitors and utilizes a larger perspective to do so. “One of the ways that I've differentiated myself is to try to present the bigger scope of what I'm providing versus the individual things. And to lead with that. And like you said, it's easier for me because I'm not going back to a bunch of previous clients necessarily. So the way that I do that, is say, I'm an executive growth hacker that looks at things through the lens of behavioral science and psychology. So if you need an executive, ie high level person that understands how to grow your business in the digital context. Secondly, I say, I can serve as a fractional CMO. I'm approaching it from a bigger perspective of saying, You're not hiring me to do these things, you're hiring me for my experience.”
[29:02] Ken adds to Bob’s thoughts and connects it back to the power of labeling and effective ways of communicating your unique label. “Nike is known for what they’re known for and that’s why they charge what they charge. I would ask the question, you could probably do the exact same thing, just in a different way; like you're known for certain things that no one else is. You can't be an agency. You're not a consultant. You're Bob Hutchins. It's very different. Like, you may do consulting, you may do some agency like work, and you do some non agency stuff. We deliver these types of results. We've had this type of experience, we had this type of success. If you like this, this is who you’re looking for.”
[32:10] Bob asks the guys for their thoughts on raising prices in light of the uncertainty in the business world and economy.
[33:39] Ken says, “Money is infinite; time is finite.”
[34:32] Brad discusses some of the leveraging opportunities that arise during a recession and relates them to raising prices.
[35:58] Ken mentions some important tips to help as you prepare for price increases in uncertain times. “Believe that it's possible, believe that it's necessary, believe that your cost needs to be no more than 1/5 of the price that you cha36:08rge. If your business isn't serving you, well, you're not profiting from it appropriately, then nothing else works; you have to fix that.”
[39:23] Bob wraps up with some final thoughts on 10x your price. “People are happier when you charge them more money, because it gives you the resources to do an amazing job. That's why you 10x so you can be the best that you can be. And they can be the happiest customers on the other end.”