How Raising Your Prices 5x Can Get You More Customers

Featured: Norman Douglas - Founder of Phase 2 Auto Spa

It happens all the time.

You start your business, work hard, start getting customers and start building momentum.

Then eventually you realize.

You're not making enough money.

You immediately start thinking of ways to cut costs or get more sales.

But what if you raised your prices?

I recently had a conversation with Norman Douglas, the owner and manager of Phase 2 Auto Spa Ja, a new premier automotive detailing service in Jamaica.

And during our talk he shared how raising his prices got him more customers and grew his business.

Here's what Norman Douglas said:

When I migrated to Canada, my background was in electrical work.

But when I went to the Trade Centre, they told me I had to go to Toronto to get my certificates evaluated.

After they evaluated them, they said I would need to go back to school.

I chose not to go back because I had two daughters to take care of.

So I started working at the post office on the night shift for about two years. But I was just making ends meet and I wanted to try something different.

During that time my younger brother started doing some detailing at a shop, and I told him that was craziness...

Because he was working for this man who was paying him on a percentage basis.

So I went there and showed him how it could work and how we could make money.

But my brother ended up quitting and going to school because he was young. I told him, "You have to go to school. This is not for you."

So I stayed and toughed it out.

Then, after a few months, I said to my wife, "This is garbage."

Because when I was in Jamaica, I had my car washed like three times a day.

I'd go to work in the morning, and if the guy came and said the car was dirty, I'd say, "Wash it."

At lunchtime, if it was dirty again, I'd say, "Wash it."

When we were ready to go home, and the guy came again and the car was dirty, I'd say, "Wash it." Right?

So how did I come to Canada and end up washing cars?

I said, "This is crazy."

And she said to me, "Stick it out, man."

At the time, I didn't know what she saw.

So I stuck it out.

Then, a few weeks later, I went back to her and told her, "You're not doing the math."

I said, "I'm charging $40 per car. How are we going to buy a house? How are we going to buy a car? How are we going to get anywhere?"

And once again, she told me, "Stick it out."

That's what she told me each time.

So I thought about it and said, "Alright, she must be seeing something I'm not."

So I got an exercise book and started doing some projections. I decided I was going to start raising our prices.

Every month, I raised the price and estimated how much money I'd make.

First, I raised it by $20... we got more people.

Then I doubled it from $60 to $120... we got more people.

And I said, "No man, this is crazy."

I kept raising it until we got to $280 for dealers, $500 for private customers.

And people kept coming.

And it kept going until we bought our first house through car detailing.

Remember: Raising your prices won't cost you business.

Not when the value is worth it.

Norman didn't raise prices on a whim.

He paid attention to the quality of his work, to the effort it took and to the lifestyle he wanted to build.

He realized that charging $40 per car was unfair to the level of service he was providing.

So he started raising his prices.

And each time he raised his price, more people showed up.

Why? Because people value what's valuable.

And Norman treated his work like something people valued.

So if you're delivering real results and still undercharging, ask yourself:

Is the problem your price?... or your confidence in what you offer?

Until next time,

Daniel Mighty

P.S. If you're ready to take your business to the next level then CLICK HERE.