If you've ever worried that changing your pricing structure or raising your fees would scare away your property management clients, you are likely not making enough money for the work you and your team are doing. In this episode of the #DoorGrowShow, property management growth experts Jason and Sarah Hull dive into the psychology and strategy behind the innovative 3-tier hybrid pricing model. You'll Learn [01:08] Addressing the Common Fears of Changing Pricing [09:10] Creating 3 Pricing Tiers Based on Psychology [16:58] Shifting Your Mindset Surrounding Money [21:12] Distinguishing Your 3 Pricing Plans Quotables "Unless you want to be the cheapest and deliver the most cutthroat, like awful service, and just target the cheapest owners, which have the highest operational cost and the lowest margins, and just hemorrhage money and not be able to grow your business, that's the game you can play." "That psychological impact of investing in yourself financially, doing something to financially invest in leveling up you and your business creates this unconscious perception that… you are worth being invested in." "If you have good pricing, you have a really optimized pricing model, and you know how to sell it, it actually changes your portfolio. It incentivizes you having better properties." Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive Transcript Jason Hull (00:00) What would happen if you doubled your pricing and half of your clients quit. well, then nothing would happen. Nothing would change. then I say, what would happen to your operational costs? All right, we are coming to you from Mexico. We are Jason Hull and Sarah Hull, the owners of DoorGrow, the world's leading and most comprehensive coaching and consulting firm for long-term residential property management entrepreneurs. For over a decade and a half, we have brought innovative strategies and optimization to the property management industry. At DoorGrow, we have spoken to thousands of property management business owners, coached, consulted, and cleaned up hundreds of businesses. helping them at doors, improve pricing, increase profit, simplify operations, and build and replace teams. At DoorGrow, we believe that good property managers can change the world and that property management is the ultimate high trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management business owners and their businesses. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. Now let's get into the show. All right. So we're going to be chatting about what today? Pricing. A little bit about pricing. we have coached and consulted property managers on pricing for a long time, like over a decade. And we've brought some innovative strategies. Like we were first to bring to market really and push into the industry the three tier sort of pricing model having three plans. And this was based on the psychology that there's three types of buyers, cheapos, normals and premiums. You know who they are, right? You've dealt with them. And so, and then more recently in our evolution, we've been pushing a hybrid model. I got that idea originally from Scott Brady. Shout out to Scott, smart guy. And we innovated on that and developed our own model for clients to make that really effective. And so this is something that we've coached quite a few people on. we consistently see some challenges come up over switching their pricing. first, what are some of the fears or concerns that come up, About switching pricing? Yeah. Everyone's always worried, oh my god, what if I lose all of my clients? Right. I'm going to change my pricing, and everyone's going to leave me. And we've helped a lot do that. they lost all their clients. No, it never happens. It never happens. No, if they lose any, it's typically their worst clients. And then they end up finding that that was a blessing. Yeah. So they end up making money by getting rid of those and they're charging more money. So really they're increasing their revenue. So a lot of times to get them over that hurdle, I usually use this example. I say, What would happen if you doubled your pricing and half of your clients quit. Like we did something crazy and extreme. So we go to the extreme. And what do people usually say at first? well, then nothing would happen. Nothing would change. I'm like, really? So then I have to ask deeper questions. So what do mean nothing would happen? Well, I'd still bring in the same amount of revenue. I've doubled my price, half the clients quit. I still have the same revenue. And then I say, what would happen to your operational costs? So they start thinking. So you probably already figuring this out right now, listening to this. So what would happen to your operational costs? They'll say, it'd
