- Let me give you a metaphor:
The idea of charging a low price
to start off with in the marketplace.
First of all, that's how you would be
perceived in the marketplace, you're cheap.
It's like in dating.
Imagine this: how many of you are single by a show of hands?
Single, how many of you are single and you admit it?
Put it nice and high.
No, no, put it nice and high, serious.
Nice and high, nice and high.
Look around the room, look around it,
see if there's anything you like.
(laughter)
That doesn't hurt, you know?
Entrepreneur, you're doing business, it doesn't hurt.
You gotta market, right?
- [Narrator] The King of High-Ticket Sales,
World's Highest-Paid Consultant,
Media Celebrity,
Multi-Millionaire Entrepreneur,
Acclaimed TEDx Speaker,
International Best-Selling Author, Dan Lok.
So, (laughs) "see anything you like."
It feels like you're picking meat from the, you know.
Anything you like there, right?
I like that, you know.
No, okay, in dating.
So let's say you are single
and you are looking for, you know,
a meaningful romance relationship.
You're looking to get married
and you're looking to find a soulmate, okay?
And you want to do that,
and you want to get out there in the marketplace,
but you thought to yourself, "But you know what?"
"I haven't been dating for awhile,"
"I'm kind of new to this, I'm not very polished."
So what I would do is, I would just,
because I don't want to scare the marketplace,
so I'm just going to lower my value,
I'm just going to go on a bunch of cheap dates.
I'm just going to go on a date
with anyone that doesn't have bad breath,
I will date them.
(laughter)
You know, I would go on a date.
And you go on a lot of these cheap dates,
and the words get out there that you are a person
that goes on a lot of cheap dates.
The words get spread, now that's great,
now you have a great reputation.
And you believe if I do enough of that,
then I will find that meaningful relationship.
Then I will find the spouse that I want.
Is that how it works in life?
That's not how it works in life.
You have to set the criteria that you want.
Who are you looking for?
What will you tolerate, what you won't tolerate,
who's the ideal "client" or ideal partner?
You can't just lower expectations.
Well, I guess I'm kind of desperate, I'm getting.
Ladies, I'm 30 years old next month, and shit.
My mom is pressuring me, I should go on a date.
No, no, no, no, no, no, no, no.
No, you gotta start here.
So in the marketplace, when you start low,
the words get out there, you're stuck at here.
People think that's how much you charge.
Now what happens is, you do that for let's say
one, two, three years in business
and now you say, "Now finally I have the testimonials,"
"I have the credibility."
"Now I'm going to raise my prices," right?
What would your clients, existing clients, say
or what would the marketplace say?
What the fuck?
You've been charging this for many, many years.
Suddenly you want to triple your rate, you greedy bastard.
Oh, but I'm delivering more value.
I don't care, you charged this.
Why are you tripling your prices?
Well, but that's what I wanted to charge right from day one.
Then why didn't you charge that?
You start with this!
That's the difference.
A Chanel bag is a Chanel bag is a Chanel bag.
That's why they don't discount.
That's why Hermes don't discount.
Ferrari's don't discount.
To picture this, any ladies like Chanel bags, Chanel bag?
Just one, two?
(laughter)
Okay, thank you for your honesty.
So let's say you want to buy a Chanel bag,
and let's say, pretend I have a Chanel bag here, okay?
And I say to you, "You know what this Chanel bag,
used but great condition, great condition, it's $20."
"You want one?"
Right? You're like, "No."
What are you thinking?
- [Woman] It's probably fake.
It's fake, what's wrong with this?
Right, that's the thing.
But if I said, usually the retail it's $2,500
and this is $2,000.
Okay, that's more like it.
That's more like it, that's what I'm talking about.
So pricing itself, please write this down,
pricing itself is a marketing strategy.
Pricing itself, done properly, it's a marketing strategy.
Because there's a segment in the marketplace
and the majority of the people in the marketplace,
they perceive higher price equals higher quality.
It may not always be the case,
but that's how a lot of people think.
Higher prices equal high quality.
(dramatic music)