It’s a beautiful day. You want to be outside. You’ve been holed up in your office all week. So you go to a fancy shmancy hotel for lunch.
It’s on the beach. Gorgeous view. Very romantic. The whole deal. You and your date go. You order two chopped salads and get two waters. You really don’t look at the prices on the menu.
It was a lovely lunch – until you get the bill- for $65! What? 65 bucks for 2 salads? Yep.
What if the salad was $10 and they charged you $19 for the view?
Or you brought your own salad and just asked to pay for the $19 view?
Or if you ordered the salad and got a deal because you turned around – and didn’t have to pay for the view!
Ha! It doesn’t work that way.If you plan on eating, you have to pay for the view and pay for the food! That’s the only way it’s priced.
Of course you could sit on a bench or just take a walk around the hotel – but if you want to have a bite or a drink – you’re paying full boat baby. They are not giving you the choice to buy just the salad or just the view.
If people just bought the salad, or just bought the view – the hotel wouldn’t make enough money to cover their costs and make a profit.
Business lesson: you must price your products and services to make money. You can’t give your customers an option to buy something if you lose money – or at least have an upsell where you make money.
It’s perfectly fine to give your customers a choice when they buy stuff. But at each price point, you must cover your costs and make a profit.
Don’t undervalue yourself. It’s not just about the product you are selling. It’s the result or outcome. That’s the view at the hotel… It’s what people are paying for.
Known for his simple, savvy, holistic approach to financial planning, he advises his clients on how to unite their money with their lives and businesses. He works with entrepreneurs to create a bigger vision for their business. Justin loves business strategy. He is all about achieving business growth.
Justin believes that every business owner needs to know where they are with their business money. Using a unique system developed from his studies of financial psychology, Justin teaches business owners how to plan their cash flow and be strategic with their business finances.
Prior to founding Krane Financial Solutions, Justin was a Vice President, Investments, and Sales Manager at UBS Financial Services Inc., for 12 years, in Beverly Hills, California. Justin is also a Certified Financial Planner professional and received his Certified Investment Management Analyst (CIMA®) designation from Investment Management Consultants Association and in conjunction with The Wharton School of Business at the University of Pennsylvania. Justin has been featured in The Wall St Journal, Entrepreneur Magazine, and CNN Money.
He is married, has three children and lives with his family in Calabasas, California. An accomplished athlete, Justin was a former junior ranked tennis player in Los Angeles. He loves to cook, travel, and speak Italian.
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