After seeing the last two videos I posted to the blog, many of you posted comments, and sent me emails – guessing at how much I paid for the two paintings.

The answer is…

$39.95 each.

Some of you guessed correctly, while some of you thought I paid much more.

And truth is, after watching this artist do his thing, I thought he’d be selling the paintings for more.

It just goes to show that the value of something is determined by the buyer, as well as the seller.

Here’s the lesson I promised you.

Once quoted the price of $39.95, I told the gentleman which two paintings I wanted.

As soon as I did, he immediately says, “Since you’re buying two, I’ll give you $10.00 off”.

This was a HUGE mistake.

Why?

Because I’d already agreed to buy two paintings for $39.95 each, and I would’ve gladly paid more.

I was actually surprised that they were so cheap.

Because I already agreed to make the purchase, he would’ve been better off to give me a discount on a third painting.

This is a big mistake, and I see far too many business owners making it.

We undervalue, and therefore under price our products and services.

I’ll admit that I used to do this myself – years ago.

But think about this for a minute.

It takes this artist about 10 minutes to create one of his paintings.

Let’s say he takes a few breaks here and there throughout his eight-hour day, and is able to produce 32 paintings each day.

That’s 4 per hour.

At $39.95 per painting, he’s grossing $1,278.40 per day.

Now, I don’t know what his costs of doing business are – but you know he’s got em.

He’s got to pay some pretty good rent for his prime spot on the Vegas Strip.

He’s also got the cost of his paint and other materials.

We can’t know for sure, but for this example, let’s say he’s got a 50% profit margin.

If he subtracts his 50% cost of doing business ($639.20) from his gross sales of $1,278.40 – that leaves him with a take home profit of $639.20.

Now…

Let’s say that he increases his price per painting to $49.95 – just $10.00 higher.

An amazing thing happens, because his cost of doing business doesn’t change.

It remains steady at $639.20 a day.

If he creates 32 paintings a day, he’s just increased his income by $320.00 a day.

And every bit of this increase goes into his take home profit – moving it from $639.20 a day – all the way up to $959.20 a day.

Talk about a HUGE difference.

That’s a 30% increase to the bottom line.

Imagine giving yourself a 30% take-home pay increase, without having to do any extra work.

It’s entirely possible.

All you’ve got to do is place a higher value on the products and services you have to offer.

Dedicated to your success,
Kevin Thompson
“The Automatic Income Coach”