No BS pricing strategy by Dan Kennedy – Book Review

Introduction to “No BS Pricing Strategy”

Today I’m doing a book review on the book called “No BS pricing strategy by Dan Kennedy”. And I’m just going to do a quick screenshot here and show you what the book looks like. So it’s the “no BS pricing, price strategy, the ultimate, and no holds barred kickbox take no prisoners guide to profits, power and prosperity like Dan Kennedy and Jason Mars.”

Caution Against Free Offers

Great book, I had a good experience reading the book. And I definitely recommend you guys reading it. Now I’ve taken some notes from the book here, and I’m going to read them and explain them.

Some of the stuff that I liked, and I leave the rest for you guys to pick up the book and read it. So in the beginning, he warns you very strongly against giving away free stuff for no reason, especially when it’s hurting you.

Importance of Pricing Strategy

He says free transpires to not only expect things to be free, but to demand it. And he brings examples of companies that have given away stuff for free. And then they train people and educated people on how getting free stuff. And people demanded it later.

The 80/20 Principle

He says as the old saying goes, Why buy the cow if you can get the milk for free. So once they get used to getting the milk for free, they don’t want to buy the cow anymore. And he goes, there’s nothing prestigious about free. There’s nothing prestigious about free.

Pricing Decisions Beyond Price

And then he brought he brings this really good example. And you guys know that I’m a really big fan of this 80/20 principle. Okay, so he says the bottom line is only 20% of the purchasing is based on competitive pricing. I actually looked into this, it’s actually less than 20%.

It’s more like 10%. So, price is between 10 to 20% of the decision-making factor when people are buying something depending on what country what product and who you sell it to, and a whole bunch of other factors. But it’s maximum 20% of their purchasing.

Lifestyle Implications of Pricing Strategy

Okay, but 80 to 100% of some sellers and salespeople behave as if it was the other way around. And devote devote 80 to 100% of their efforts to competing on price and price only.

So other factors could be their need for that great customer service, your branding, your competitive advantage. And there’s a whole long list but price is not all of it. Okay, the price is only 10 to 20%. Right.

Personal Benefit of Pricing Strategy

And then he goes on somewhere else in the book to continue on this 80/20 principle says it is possible that less infrastructure, fewer employees, and the headaches that come with them are shorter weeks or fewer hours, fewer hours open for business, a lot fewer customers or clients, discouraging the worst and keeping the best clients less stress and time to craft and deliver excellent products or services could yield as much or more net take-home income.

Duty of Entrepreneurs

Okay, this is how pricing strategy can translate to personal benefit and lifestyle improvement and lifestyle improvement, not just different numbers on a financial status statement. So just got 80/20 principles all over it. If you haven’t seen my video reviewing the 80/20 principle book, it is posted here, go through my channel and take a look at it.

It is an extremely powerful principle. So it’s possible to get less infrastructure, fewer working hours, fewer customers, getting rid of the bad ones and keeping the good ones and then focusing your time and crafting excellent offers and products and premium services and make just about the same if not more money and focus on your lifestyle as entrepreneurs, that’s what we must do.

Profitable Business Imperative

He also mentions in the book that it is our sworn duty to build and keep and maintain a profitable business. Now I don’t want to sound like a profiteer. But I like profits we’re in business for profits because it’s the profits that pay our wages, pays our bills, pays our mortgage and creates a healthy business and it’s the profits that make us wealthy.

Simplifying the Sales Process

Okay, so we must and we as entrepreneurs forget about this from time to time what we forget about this profit thing A lot of times, so it’s very, very important to keep an eye on that.

Now, here are a few questions that you can answer to make your sales plot process a lot easier to clarify for yourself, for your staff and for your potential customers on how what you sell, and how to make the sales process a lot easier.

Key Questions for Sales Clarity

Number one, tell me what do I need to know to do business with you? What do I need to do to know to do business with you? What do I need to know to feel confident about deciding to place my trust in you? Can I give you I’m gonna give you guys a simple quick tip to answer these questions here. Right after I go through them.

How will I know I am right for you? And you’re right for me? How do I know that? How do I know you’re the right company or the right product? And here, here’s a couple of more questions that will allow you to be become a lot more confident and clearer on your sales process.

Once you answer these questions, and you got to think about it, and make it clear for yourself and for your sales team. Why should I your prospect choose to do business with you versus any and every other option available? Why should I do business with you? And not go anywhere else? Another one? Watch why? Why should I your prospect?

Choose you regardless of price be unconcerned about price? And never consider comparison? Comparison shopping based on price? So why should I do business with you? And not worry about price? I’m going to give you a small hint that will help help you answer these questions. Once you specialize in something and become the queen or king of one thing, and you tried to sell that product or service, it makes answering these questions a lot easier.

Why should I do business with you?

Why should I do business with you because I am the king of say landscaping, because I’m the best dentist in town at what I’m the best at what I do. And then if you narrow it down, then more you narrow it down, the more you become the king or queen of one thing, the easier it becomes for you to answer these questions. And Danny agrees with me.

He says the movement of a product or service from generic to a niche or a subculture automatically permits price increase. So if you move to a niche market and you specialize in something, you can increase your prices right away. And with no change in the actual manufacturing, or delivery cost of the product or service.

So your cost and manufacturing costs stay the same, you can increase your price because you’re specialized and your profits just could easily double or triple or quadruple. Okay.

Pricing Strategy and Profit Maximization

Now, here are some more examples that I really liked. And I’m going to give you some more examples, you can increase your price by 10%. And that will result in a 40% increase in your profits.

For example, let’s say you have this pen, and you sell this pen for $100. And let’s say that you have a $25 profit margin on that or a 25% margin on that. Okay, so $100.25 $25 profit, now we’re going to increase this price by 10%. Or if the new price is going to be $110, that would instantly increase my profits to $35.

Okay, so my profit went from $25 to $35. Right, which is an increase of 40% in my profits. So my price only went up by $10, which is not noticeable. And people probably don’t care about 10 bucks, but my profits went up by 40%. Okay, really, really, if I increase it by 20%, it would just double my profits on that almost pretty much.

So think about that and think about your profits and think in terms of your profits when you’re and I want to talk about the next example here.

Avoid Percentage Discounts

He says, Don’t ever give dare a discount in terms of percentages. So let’s say do not give 20% off on this at 20% off on the $100 item that I have 25% discount will will cut my profits by 80%. So I will only have a $5 profit, which is 80% less than what I used to make.

Okay, he says make it all as $1 figure, not a percentage, and I strongly agree with him. Claim. You see a lot of bins especially in retail 50% Off 70% Off, blah blah blah. It’s like they’re slashing their profits and it’s not good.

Premium Pricing Examples

And so Dan, and I’ve been following down for a while now he’s a very big fan of premium products, premium services at premium pricing. And he brings some examples of that here. company called doggles.com. And maker of high fashion sunglasses for dogs to wear at the beach, high fashion premium sunglasses for dogs, were at the beach.

Now for some people, they would just go What the hell is that? Now this company, at the time that he wrote, The book had about $3 million in sales. Think about it, that he talks about the most expensive coffee in the world. So supposedly, in Philippines, there’s this thing that they call it a cat, which when I looked at it, and more looks more like a raccoon.

And so this thing goes around and eats the coffee beans, then he poops it, then a bunch of people go around, picks up the poop pick up the poop, and they clean it and they sell that coffee. And it’s the most expensive, expensive coffee in the world. The coffee sells for $85 per four ounces per four ounce bag, or you can save $20 by buying a pound at $320.

Only the most expensive coffee in the world. Not personally, I probably wouldn’t drink that. But there are people that pay for that premium.

$448 panties!

He then talks about this company called Nancy Meyers that sell women’s underwear and lingerie.

And they sell this pair of panties for an everyday low price of $448. I actually went to their website and looked at the panties , there’s really not not not much special about that $448. And then there’s this other company called moto art that they sell furniture made out of actual airplane parts for eight grand 12 grand 15 grand 20 grand, very, very hard Hi premium pricing.

Now. He talks about the people that pay a premium price, for a premium service or product, it’s not about the product or service or the service, it’s about them. It’s about how they look at themselves, and how much they’re open and willing to spend on themselves to make themselves feel good.

So a lady might spend 400 to $500 on a pair of panties so that she would feel good, or a guy would eat this eat this cat poop coffee, and you know, feel good about it. So he talks about slashing your costs, and he says when a member of your staff is a problem, they have to get on board or get out.

If not, it will cost you much more to keep them than it will to let them go. So staff is not performing. They’re not doing well. And it’s costing you it’s it’s eating away at your brain taking mental resources, company resources and everything else. Right. So it is better to let them go and either just live without them or bring somebody else that actually could perform and do better with what they do.

This is a great book!

A lot of good information on it. I definitely recommend you guys getting it. I’m going to leave a link here to Amazon so you can get either the Kindle version or the paperback get it read the book. And if you have any questions or comments, leave a comment on the video/blog, subscribe to my channel and follow.

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