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Entrepreneur Ideas And Business Lessons For Determining Your Marketplace Value

What are your time and skill worth to somebody else? The issue of pricing is the biggest hurdle to people thinking about becoming entrepreneurs because most people live their lives with someone else doing their pricing for them. In this episode, business coaches Dan Sullivan and Shannon Waller explain the best way for entrepreneurs to determine what to charge.

Here's some of what you'll learn in this episode:

  • How an entrepreneur can switch mindsets from being the seller to being the buyer.
  • Why entrepreneurs should actually stay away from competitive pricing.
  • Why the fastest way to your biggest future is The Strategic Coach® Program.
  • The question that will take your clients into the future, and you with them.
  • Why you shouldn’t negotiate unless what you’re offering is unique.
  • The importance of being attuned to your clients’ futures.

Show Notes:

  • Most people don’t like negotiating what their value is with someone else.
  • If you’re applying for a job, it’s generally predetermined what the value is of doing that job.
  • For entrepreneurs, the combination of time and talent determines the price that needs to be negotiated.
  • There’s no right price for anything because all pricing is psychological.
  • If your client doesn’t have a big future, your price is a cost. If they have a big future, your price is an investment.
  • If you focus on your uniqueness, you aren’t in competition with anyone.
  • The toughest obstacle to being a successful entrepreneur is getting to where you feel proud and confident about the ways you've priced your value in the marketplace.
  • Many people don’t have a proper appreciation of their own value, and so they don’t like negotiating.
  • Some entrepreneurs spend too much time worrying about people who aren’t check writers.
  • Pricing is a lot easier if you have no competitors.


Capitalism—And Everything Else by Dan Sullivan

The 4 C’s Formula by Dan Sullivan

Unique Ability®

Deep D.O.S. Innovation by Dan Sullivan

Enterprise Value: How the Best Owner-Managers Build Their Fortune, Capture Their Company's Gains, and Create Their Legacy by Peter R. Worrell

Episode Transcript:
Shannon Waller: Hi, Shannon Waller here and welcome to Inside Strategic Coach with Dan Sullivan. Dan, it's great to see you again. You said something in a 10x Connection Call that just had everyone kind of riveted and created a bunch of breakthroughs that I thought would be super fun to talk about in today's podcast episode. And that is that all of your pricing lies in the aspirational future of your clients, and that is not how most people think about pricing. And given that pricing is one of those somewhat angst filled questions for a lot of entrepreneurs and their companies in terms of their products and services and experiences, let's dive into pricing. Let's talk about your different take on pricing.
Dan Sullivan: Yeah. Well, we've just released a book on capitalism, and I've broken capitalism down. It's a five-part method that has been around forever, so it's not recent human history. This has always been at work as I think probably as soon as humans were humans, pricing came into their activity. And that is, what is your time worth? What is your skill worth to somebody else, okay? But when marketplaces got created and products and services were sold, then it became really crucial if you were going to be successful in the capitalist venture and the five-part process is Five Ps. So, the first is pricing, and then the next one is property, that your achievement as an entrepreneur—I’ll focus on entrepreneur because it's our main, our only business is entrepreneurs, is that how you create value is actually a form of property. It can be structured, it can have a process to it and everything.
In today's world, you can actually get patents on the way that you go about creating your value. So, it's property. And the third one is productivity, getting things done faster, easier, cheaper, producing a bigger result. Fourth one is profitability. You keep more of what you take in. And number five is prosperity, which means that how your business success affects everything around you, but everyone around you that they share in your success. So, pricing, property, productivity, profitability, and prosperity. But the real hurdle for people who are thinking about becoming entrepreneurs is actually the first one, pricing, because most people live their lives where somebody else does their pricing for them. And what I mean by that is, most other people work for someone else and they're offered a certain price, a certain salary, and that's already predetermined before you go in and you're in competition generally with other people.