In many of my groups, we’ve talked about the difference between cost versus price quite a bit. And I wanted to dive into it a little more today. John Fox is one of my friends here in Lexington, Kentucky. He’s a business coach, and he brought this idea up to me for the first time several weeks ago. My mind has been thinking it over ever since.
He said that when he’s talking to entrepreneurs, he often asks them what is more important to them, cost or price. And many times these entrepreneurs didn’t know the difference or why it would be important. He would respond: “Price is your investment in this specific product or service, right? And, Cost is what you pay tangible or intangible if you don’t invest or use an inferior product or service”
So, the Price of having a personal trainer in a gym your lifetime, you could calculate that out. It would be a number. Something like $70 an hour, three times a week for the extent of your life. But, the Cost of not having that would be: not fitting into your clothes, type two diabetes, heart disease, inflammation, brain fog, the list goes on and on.
Or, the Price of a really good pair of running shoes might be $130. The Cost of not buying a really good pair of running shoes is calluses, ankle mobility issues, and knee and back pain.
This shows how the Price really is different than the Cost.
I’m bringing this to you because, in order to sell your product or service, you need to understand the difference between the Price and the Cost that your client is going to have to pay if they don’t buy your product. If you can help them realize that the Price is less than the Cost, you will sell so much better.
So for me, I coach people on how to scale their business. My Price is $1,500 to go into my Three More class, but I understand that the Cost of not going into my class and trying to learn all of those things on their own is higher. It’s wasted time, money, and opportunities. This allows me to sell from a much better place.
If you understand the difference between your Price and your Cost, you’re going to show up better. You are going to speak better. You are going to be able to sell your services much more fluently.