444. A Lesson in Scarcity

In This Episode You Will Learn About:

• The updated lesson from my $4500 Christmas lights story
• Being penny wise but dollar dumb
• The dangers of a scarcity mindset
• Providing value for what you charge

Resources:

• Text ELITE to 310-412-0416 or go to fortheloveofmoney.com/mastermind to see if you're a good fit for my elite mastermind group

Show Notes:

A few months ago, I told a story about spending $4,500 to get Christmas lights put up on our house. This story had two points: One, never apologize for what makes you happy, and two, know the value of your time. Those lights brought me enough joy that it was well worth the cost, and for me to spend the time putting them up could have cost 10x the hourly amount I paid.

When it came time to take those lights down, which was included in the cost, I decided it would look nice to leave some up on our palm trees. When the company then invoiced me for the cost to leave the lights up — which would have saved their team time — I was floored! This company that I was so happy with up to this point was being penny wise and dollar dumb… and because of that, they lost my return business.

The first lesson I have for you out of this experience is just that: Don't be penny wise and dollar dumb. Don't nickel and dime your customers in order to squeeze as much money out of them as possible at the expense of their repeat business.

The second lesson is not to live with a scarcity mindset. Scarcity leads you to collect pennies now rather than dollars later. It tells you to milk every customer for all they're worth now, instead of happily serving them year after year. Scarcity always costs more than you think it is saving you.

Be financially responsible. Go for the upsell. But make sure you have a good reason for it, and provide real value for it.

Follow me on social media @ChrisWHarder on Instagram and check out www.ForTheLoveOfMoney.com