(triumphant music)
- Okay.
So, who's got a good...
Let's have two people go to the mic.
Just share...
Who's got a very good example?
You think, like, this is awesome.
Yeah, go to the mic.
Just go to the mic.
Yeah.
Go to the mic. Yes.
One more?
(mumbles) Okay.
Just introduce yourself so they know your name.
"My name is..."
- Hi, my name is Adnan.
- [Dan] Hold on. Everybody say "Hi, Adnan."
- Hi, Adnan.
- I choose the Ferrari.
- [Dan] Yes.
- And I said "Why it works, is that you can't have it."
(audience laughs)
- [Dan] No, you can't...
No. Different context.
You can't... - What I mean by,
"you can't have it" is...
You can't have it tomorrow, right?
A Ferrari is handmade, it's...
They can make it a million different ways.
- [Dan] Yes.
- And nobody can have the same Ferrari.
And you can't have it tomorrow.
There's a two-year waiting list.
- [Dan] Yes. Yes.
Actually, I'm going to use Ferrari later on
as an example, but very good point. Yes.
- So, my name is Hassan.
- [Dan] Hi, Hassan.
- Hi, Hassan.
- So, I chose the example of a scarf.
- [Dan] Scarf.
- So, you can choose a $10 H&M scarf,
or you can choose the $400 Burberry scarf,
which is local, handmade, hand-stitched,
made of the finest fibers.
- [Dan] It makes me feel good.
Because I have one. It's good.
Keep talking.
- Handmade with the finest fibers.
Any color of your choice, for $400.
- [Dan] Only $400.
- Only $400.
- [Dan] Lot of loss.
- My name is Jason,
and I said the same thing for my group here.
- [Dan] Hi, Jason.
- Hi, Jason.
- I think in terms of like, a bunch of guys,
and you say, a Volkswagen is walking by.
No one's head is gonna turn.
But you see a Ferrari, or Lamborghini,
everybody's gonna turn.
- [Dan] Yes.
- It's just like a signal that it's quality.
- [Dan] Yes.
- And it's not going to break down.
- [Dan] And by the way, if you know anybody.
Anybody.
I have never owned Ferrari, I'm not interested.
My friends own a Ferrari. It's a pain in the ass.
To drive.
It's actually very difficult to drive.
Very difficult to park.
It's not easy to drive.
- It's a piece of shit. (audience laughs)
- [Dan] You know, it's not that fun.
You know, so...
But, well, if you ask them,
"Well, what do you think of Ferrari?"
"There's nothing like it. It's awesome."
They just paid that kind of money for it,
of course that's what they say.
What are you gonna say,
"No, I think it's a stupid decision
"that I made on my end."
(audience laughs)
It's not gonna happen, man! Right?
Round of applause.
(applause)
Yes.
- Hi, my name is Rosalyn, and...
- [Dan] Hi, Rosalyn.
- Hi, Rosalyn.
- Hi. So, my example is actually Apple computers.
- [Dan] Yes.
- And the reason I say this is,
I believe that they own the market in terms of
premium and also, identity-based product.
- [Dan] Yes.
- And, I believe that company makes more money
on add-ons, than the actual products they sell.
- [Dan] Yes.
- To give an example,
my adapter for some reason, broke.
The power cord...
And I was so scared to get an after-market adapter.
You know, the knock-off one?
That I had to shell out like, 100 bucks.
Just to get an Apple adapter. - [Dan] Yes.
And then, when you work with the projector,
you gotta buy the dongle.
- [Dan] Yes.
- And it even has a funny name, you know.
It's a personal computing company
named after a fruit.
And yet, people happily pay
for these premium products.
- [Dan] Very good example.
Okay, last one.
- My name's Sean.
- [Dan] Sean?
- Sean.
- [Dan] Hi, Sean.
- Hi, Sean.
- If you buy a printer,
the ink might be more expensive
once it runs out.
And instead of like,
stacking up a bunch of printers
and going to Best Buy,
- [Dan] Yes.
- You could just buy the ink that's more expensive
than the printer itself.
- [Dan] Yes, yes.
Yeah, I mean for that business,
most of the...
When they sell the printers to you,
it's actually at a loss.
All the money's made on the ink.
- [Sean] And they always break down within a year.
- [Dan] Yeah, always within a year.
Break down within a year. Exactly.
Good example. A round of applause.
(applause)
So, I have some very interesting examples.
Before I go into it,
let me just quickly cover the five biggest mistakes
that entrepreneurs make when it comes to
selling a premium offer.
So there's five common mistakes that I see,
that entrepreneurs make.
Mistake number one.
They try to sell a premium offer at a low price.
They're trying to sell a premium offer at a low price.
Okay, because we are skeptical.
It sounds good to be true.
Like, ladies. Ladies. If I go up to you and say,
"I've got this Chanel bag."
Okay?
"And it's $150."
- [Audience Member] Knock-off.
- Knock-off!
What goes through your mind?
Fake.
- [Audience Member] It's stolen. Stolen.
- It's authentic, trust me.
Yeah, right.
Okay.
So what it was I'm doing,
I'm trying to sell a premium offer at a low price.
It makes people feel very skeptical.
It can't be true.
It must be fake.
Even though, maybe it is true.
It doesn't matter.
The perception is, if it's that cheap,
there's a gap between the price
and the perceived value.
Now, worse is, if I come to you and say,
"You know what, I've got a Chanel bag.
"The retail is $3,000.
"This is, I don't know, $2,001.
"It's used."
"Okay. Hmm."
Right?
So, that makes a little bit more sense, right?
Same idea.
So mistake number one,
selling a premium offer at a low price.
Mistake number two.
Selling a low-value offer to a premium crowd.
If someone goes... MCL Motors, right?
Someone goes into a luxury dealership,
and they're walking into MCL Motors,
they're not looking to buy a $25,000 car.
Okay.
So, selling a low-value offer to a premium crowd.
So when, you... If you have an opportunity
to bring in front of people that...
They could be sophisticated clients.
Or affluent clients.
Sell them something at a premium price.
Yes.
- [Audience Member] You don't need a buy-in offer
for those kind of clients?
- No.
Because they're often... These buyers...
Affluent clients buying based on emotions.
Okay, they're buying based on feelings.
I have bought like, stupid shit.
Stupid shit.
Where I actually don't need the product,
but I just admire and appreciate
how good the salesman is.
(audience laughs)
He's doing his stuff.
He's doing his thing.
He's saying all the right words.
In my mind, I'm like,
"Shit, man. You're good."
Like, just as an entrepreneur, I appreciate that.
How good he is.
Hey man, kudos to you.
I just bought...
I just watched a 60-minute performance.
I'll buy something from you.
(audience laughs)
It's amazing.
It is amazing.
Because it's based on feelings.
I don't actually need it, right?
Don't actually need it.
- [Audience Member] Just to jump in.
Do you do that also to see how they're selling?
- Oh yeah, all the time. I love...
Sometimes I get these telemarketers calling me, right?
I'm just like...
Get them to stay on the phone
just to see how they pitch.
I say, "Hey, man."
"Oh man, you got... We're selling this thing, and whatever."
What (mumbles) was it?
I got a call from a telemarketer.
What were they selling?
Let me think.
- [Audience Member] They probably hadn't even
researched you, either.
- They haven't researched.
They're just pitching, right?
And then, she was so, so bad.
She was so bad.
And I was like,
"No, you shouldn't open it that way.
(audience laughs)
"You should be asking this question.
"And then you lead me to...
"No, no, no, no, no.
"That's not how you build value.
"You do it there, see?
"And then you do it this way."
Oh, she said, "Oh yeah.
"That makes a lot of sense."
"You gotta change your script."
"You think I should do that?"
"Yeah, talk to your manager, change the script."
(audience laughs)
And then she's like,
"So are you going to buy..."
"No."
No. I didn't want... It's just fun.
So...
I mean, I just, I can't help.
I can't help. I want to make it better.
I want to improve it.
Mistake number three.
Making a premium offer in a low-value setting.
Okay.
Making a premium offer in a low-value setting.
Imagine you go to a motel,
and they have this restaurant there.
Okay?
And then you look at the menu,
and suddenly you see the menu.
Okay, burgers and all this stuff.
Steak. $100.
What the hell is this?
Is it like, a typo?
Like, it should be 10.
No, it's $100.
What the hell is going on? Right?
So again, making a premium offer
in a low-value setting.
They're trying to sell a premium offer,
but the environment isn't right.
I'm a very big believer in environment.
In environment.
The way you set up the sell.
You have financial planners.
If you're trying to sell a financial plan
to affluent clients...
Recommendation, don't meet at Starbucks.
Okay.
They're not going to buy what you want to buy.
It's like, when...
"Man, give me half a million.
"Give me a million to manage."
You meet at Starbucks?
It just doesn't happen, man.
It just doesn't work.
- [Audience Member] That's why you host it from here.
- Yeah, why I host it from here.
I truly believe.
I mean, you're selling expensive stuff.
Golf club. Private club.
Meet there.
I've closed so many deals and so many transactions,
just because I have lunch at Vancouver Club.
It saves me a whole lot of time.
I meet someone, I say,
"Meet me at VC."
That saves a whole lot of time.
It shortens the process.
If they have done the research and all that,
they know who I am.
But, meeting here...
And because I do so many meetings here,
if I walk through the lobby,
everybody knows my name, right?
"Mr. Lok," and this and that.
And this, I do it on purpose.
Shit, I'm telling you guys my secret here, alright?
Imagine.
Simon, you're not doing a deal, right?
- [Simon] Sure.
- We'll say, "Simon, let's do lunch at VC."
"Oh yeah, let's go to VC, man."
Okay, first of all,
they would be dressed in business, right?
They take you a little bit more seriously.
We walk through lobby, everybody knows my name.
"Mr. Lok, welcome. Welcome back."
Da da da da da, right?
"Oh man, everybody knows who that is.
"He must be important."
And I am important.
(audience laughs)
But it's a perception
I intentionally create, right?
So when you go in there, everybody...
"Mr. Lok, your usual?"
All that stuff.
Oh, man. It's like, this is good.
There, the deal is 80% done.
It's 80%. It's all perception.
All perception.
So, making a premium offer in a low-value setting.
So, we're thinking of business.
What kind of setting, what kind of environment
you want to create in order to
sell the price that you want.
Mistake number four.
Making a premium offer to a low-value crowd.
Okay. I think this mistake is probably the most common.
Making a premium offer to a low-value crowd.
Okay?
I am not going to have
an item in a dollar store for $1,000.
I don't care how good the item is.
Nobody's going to buy.
Not the right...
Because it's a low-value crowd.
It's a low-value crowd.
Okay?
So, making a premium offer to a low-value crowd.
Sometimes entrepreneurs, they try that.
They try to make a premium offer to a low-value crowd,
and when nobody buys, what do they do?
Yeah, they question themselves.
It's like, "Oh my God, what's wrong with my offer?"
Or, "Must be I need a change."
Or, "Oh my God, maybe...
"Maybe whatever I have,
"the products and services I have,
"it's not that valuable."
We start doubting ourselves.
Does that make sense?
When that's not the case,
you're selling to the wrong people.
They ain't got money.
Goodbye.
Not your fault. Not your fault.
Mistake number five.
Making a premium offer with a low-value mindset.
This is very common.
Making a premium offer with a low-value mindset.
How much confidence do you have?
How much belief you have about what you sell?
Don't project your own values to your clients.
If you're a real estate agent,
just because you can't afford a $10,000,000 home,
don't let that stop you from selling a $10,000,000 home.
Don't let that stop you from selling a $10,000,000 home.
Don't project your values,
and also, entrepreneurs,
especially what I notice, start-up entrepreneurs.
When we're just struggling,
we're getting started,
cash flow is tight.
What happens is, we project...
I've been there.
We project our own struggles to our clients.
Because, "Oh, man. Cash flow is tight.
"I don't have money. I'm not paying the bills."
We project this kind of energy struggles to our clients.
We think they are the same way.
And we communicate in a way that...
It's like, "Nah." They don't...
They're just not comfortable with us, okay?
Scarcity mindset.
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(triumphant music)