The speaker talks about how pricing can make or break a subscription service and shares his own mistake of charging too much for his service, which turned away potential customers. He recommends lowering the price to make it an impulse buy, which can be used to get customers into the funnel for more expensive upsells.
The value of a product is often underestimated and most customers are willing to pay much more than expected. By increasing efficiency in customer acquisition and raising the price of a product, a business can create a successful and lucrative model.
The speaker suggests creating CEO groups out of podcast listeners to form a business idea and move away from traditional models.
The speaker believes he should be charging 5-10 times more than what he currently charges, because the group he is in wouldn't be receiving as much value if he wasn't there. He argues that 10,000 people paying him $10,000 a year for his services would not only be reasonable, but also deliver more value than his current pricing structure.
Selling software has the benefit of costing the maker zero for each incremental sale versus a physical item. Additionally, offering discounts for higher-priced items can capture more margin even after the discount is applied.
Building a world-class product and a couple of customers who are blown away is all it takes to raise money. Startups should expect a six to 15 million evaluation for a product in the market and 50 to 100 times yearly revenue.