Lecture Notes: Understanding Rich Clients in Business

Introduction

• Speaker: Cody Sanchez
• Podcast: Big Deal Podcast
• Topic: Selling to rich clientele and increasing business profits.

Key Points

Understanding Pricing and Client Types

• Common Issue: 9 out of 10 small businesses undercharge.
• Client Types:
  • $500 clients vs. $50,000 clients.
  • $500 clients are more demanding due to their limited budget.
  • Higher priced clients tend to be less demanding.

Business Strategy: Sell to Rich People

• Reason: Rich clients are willing to pay more and demand less.
• Challenges of Selling Cheap:
  • Requires high volume sales and efficient operations, e.g., Walmart, Amazon.
  • Highly competitive, low-margin industry.

The Rich Desire Pyramid

1. Status
   • Selling high-status items.
   • Position as the best, not the cheapest.
   • Example: Hermes Birkin bags.
2. Convenience
   • Selling time-saving services.
   • Example: Delta's concierge service, white glove services.
3. Exclusivity
   • Creating demand by restricting access.
   • Example: Private clubs, Tiger 21 membership.
4. Privacy
   • Offering services that protect customer privacy.
   • Example: NDAs for service providers, information scrub services.
5. Scarcity
   • Limiting availability to increase demand and perceived value.
   • Example: Waiting lists, limited edition items.

Actionable Advice

• Price Strategy: Assess and potentially increase pricing.
• Research: Spend time in affluent areas to understand the rich clientele.
• Network: Engage with wealthier individuals to understand their needs and buying behavior.

Workshops and Further Learning

• Growth Workshops: Held in Austin, Miami, San Diego.
• Support: Team available for scaling advice.

Closing

• Call to Action: Share the podcast to help it grow.
• Free Gift: Deal calculator for business evaluation.
• Encouragement: Believe in the potential to build successful companies.

Conclusion

• Main Idea: Understanding and catering to the needs of rich clients can significantly increase business profitability.