How To Raise Your Prices: David Reynosa's Pricing Theory

Here's the deal.

Raising your prices is the single greatest investment you can make in your business!

It’s also crazy scary to implement. The purpose of this blog is to defeat the pricing monster and put your business on the path to success.

But before we get into the nuts and bolts, David Reynosa from Forestry Films shares the story of how he discovered a tiny but mighty pricing secret.

"Your business rises and falls based on your pricing methods."

Oh no, did I really just agree to that?

"That’s exactly what raced through my mind as I sat in shocked disbelief in my musty college dorm room.

I had just gotten off the phone with a wedding client and offered to do full ceremony & toasts, a 1-hour documentary edit, a 3-5 minute highlight film, all day coverage, and free RAW footage all for under $1500 USD.

My stomach was in knots. I felt like a total failure.

I swore on this call I would raise my prices but I still failed. Why? To be honest, it happened because I had zero confidence in my work."

He had a friend who had the same quality of work as him, but was charging triple the price. He couldn't believe it, then one day the answer came to him. “The JEANS!

He says, "I was looking for a new pair of jeans and comparing two identical options. Literally, the only difference was the price. One pair was around $20 and the other was around $97.

My mind came to a conclusion in a nanosecond: The $97 jeans are significantly more expensive so they must be better in every way. Also, this is probably a super high-end brand if they can be charging $97 for a pair of jeans.

I’m sure everyone will think I’m the coolest and trendiest guy on campus if I’m rocking these elite brand of jeans. Even though I had never heard of the brand nor done extensive reviews I still left the store 5 minutes later with my $97 jeans in hand."

How did something as simple as the price of an item become such an effective salesman?

It all goes back to human psychology.

If the price is low your immediate reaction is “What’s wrong with it? Why is it so cheap?” If the price is high your immediate reaction is “DAANG, what is that? It must be something really good if it’s that expensive. I need to have it”

A higher price also commands more respect from customers. It tells them without words that you are confident in your work and that they can trust you.

picture two scenarios.

  1. Wedding Filmmaker A charging $1000 and includes every possible add-on.

  2. Wedding Filmmaker B charging $5000 and includes only a 3-5 minute wedding film.

What are your two immediate reactions? If I were to guess your reaction to wedding Filmmaker A wasn’t very favorable.

So he decided to test something.

He writes, "I raised my prices by $1500 and took out all my add-ons. I didn’t change my website, branding, films, or anything. Just straight up raised my prices. When I gave that next bride my price I was scared out of my mind. What happened next absolutely shocked me. Without hesitation, she asked how to book and signed the contract.

Convinced that I just talked to an alien, I tried my new prices on three other brides. Same exact outcome. I couldn’t believe it. Just by raising my prices I was able to command more respect, get more bookings, and booked clients who gave me more artistic freedom!"

The Forestry Films Pricing System

Here is our exact system to raise your prices without losing bookings.

  • Take prices off your website

  • For every booking, raise your prices by $150

  • If a couple says it’s too expensive lower the price by $150 and if they still don’t book then you know it wasn’t the price.

  • Rinse and repeat.

The beauty of this system is how crazy simple it is! Anyone can raise their pricing right now regardless of market, content, or excuses.

Now at first raising your prices is going to seem terrifying. Don’t let the fear hold you back!

Punch it in the face and start giving your business the value it deserves. Just start at $150 extra per booking and watch the magic happen!

For more from David Reynosa, visit https://www.theactof.co/

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