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Scarcity Mindset Is Costing You Profit: How Fear Impacts Pricing and Business Growth · Profit Points Podcast

• 0:00
  SPEAKER_00: Hey, glad you're here.
• 0:01
  SPEAKER_00: This is Profit Points, and I'm I can spot your client side and certified profit first professional advisor.
• 0:09
  SPEAKER_00: If you're a small business owner who wants to actually understand what is happening in your business financially, not just survive it, but genuinely get it, you're in the right place.
• 0:20
  SPEAKER_00: Every episode covers one concept, uses real numbers, and ends with something you can actually do.
• 0:26
  SPEAKER_00: That's the deal.
• 0:27
  SPEAKER_00: Let's talk about today's topic.
• 0:31
  SPEAKER_00: Let's talk about something that quietly drains profit, even in successful businesses.
• 0:38
  SPEAKER_00: What is it?
• 0:39
  SPEAKER_00: Scarcity.
• 0:41
  SPEAKER_00: And I don't mean lack of talent, lack of effort, or lack of opportunity.
• 0:46
  SPEAKER_00: I mean the fear that whispers.
• 0:49
  SPEAKER_00: What if they say no?
• 0:51
  SPEAKER_00: What if it doesn't work?
• 0:53
  SPEAKER_00: What if I charge too much?
• 0:56
  SPEAKER_00: What if I can't make this work?
• 0:59
  SPEAKER_00: I'm Megan Schwan, your accounting sidekick, and this is the Profit Points podcast where we connect mindset to the numbers it creates.
• 1:10
  SPEAKER_00: When you think of scarcity, what do you think of?
• 1:13
  SPEAKER_00: Do you think of lack?
• 1:15
  SPEAKER_00: Do you think chaos?
• 1:16
  SPEAKER_00: Panic?
• 1:18
  SPEAKER_00: Scarcity rarely scarcity thinking rarely looks like panic.
• 1:24
  SPEAKER_00: It looks more like discounting with the thought of being helpful, over delivering to prove your value, customizing everything just in case or to meet your clients' quote unquote needs, saying yes faster than you should.
• 1:44
  SPEAKER_00: And each of those choices feels small until you see them add up in your bank account.
• 1:50
  SPEAKER_00: I want to break this down for you.
• 1:52
  SPEAKER_00: Let's start with how scarcity is the thinking behind discounting and over-delivering.
• 1:59
  SPEAKER_00: When fear is driving the bus, pricing becomes emotional.
• 2:04
  SPEAKER_00: Oftentimes you start thinking, I should make this easier for them.
• 2:09
  SPEAKER_00: I don't want to lose the deal.
• 2:14
  SPEAKER_00: This will make them say yes.
• 2:16
  SPEAKER_00: Have you ever thought those things?
• 2:17
  SPEAKER_00: I know I sure have.
• 2:20
  SPEAKER_00: None of that comes from strategy, it comes from fear.
• 2:24
  SPEAKER_00: And fear-based pricing always costs more than you think.
• 2:30
  SPEAKER_00: Let me tell you, I've been in business now 12 years, and 90% of the clients that I've thrown things in for or I've discounted to make them feel better about their investment.
• 2:45
  SPEAKER_00: And I'm not even kidding, at least 90% of those clients were PETA clients.
• 2:51
  SPEAKER_00: And if you've never heard that term before, you know, they're like the pain in the hiny clients.
• 2:57
  SPEAKER_00: They demanded more, they appreciated less, and ultimately things usually ended on a generally poor note.
• 3:06
  SPEAKER_00: My scarcity enabled their entitlement, and it didn't work for either of us.
• 3:13
  SPEAKER_00: Our best client relationships at Sidekick, we have are when people see the value of the services that we provide.
• 3:22
  SPEAKER_00: They appreciate the support, they understand their shortcomings, and they understand where we help step in with our expertise.
• 3:31
  SPEAKER_00: And I'm sure the same is true for you.
• 3:34
  SPEAKER_00: I've learned all too well that when you let fear and scarcity drive your business model bus, it doesn't end well for your peace or your profit.
• 3:47
  SPEAKER_00: I know I can't be the only one, so let me know in the comments if you can relate.
• 3:53
  SPEAKER_00: Fear-based decisions erode margins.
• 3:56
  SPEAKER_00: Margins don't disappear overnight, they erode when we add work without adding cost.
• 4:03
  SPEAKER_00: Have you ever heard the term scope creep?
• 4:05
  SPEAKER_00: That's exactly what this that is talking about.
• 4:08
  SPEAKER_00: You it also happens when you hesitate to raise prices, you stretch your delivery beyond your capacity, you price based on comfort and not on value.
• 4:20
  SPEAKER_00: Eventually, your revenue might look fine, but cash feels tight.
• 4:26
  SPEAKER_00: Maybe that's happening right now.
• 4:29
  SPEAKER_00: It's not a math problem, but it is a mindset problem.
• 4:33
  SPEAKER_00: So let's talk about that.
• 4:35
  SPEAKER_00: What is one mindset shift that protects profit?
• 4:40
  SPEAKER_00: You ready for this?
• 4:42
  SPEAKER_00: It's a goodie.
• 4:44
  SPEAKER_00: So the shift, here it is.
• 4:47
  SPEAKER_00: If this client is a fit, the price will make sense.
• 4:54
  SPEAKER_00: This happened recently when I was on a sales call.
• 4:58
  SPEAKER_00: I have a questionnaire at the beginning of calls when people book, so they can tell me a little bit about themselves, about the type of company that they are.
• 5:06
  SPEAKER_00: And based on the size client and what they had going on, I wasn't really sure what their response was going to be after our conversation.
• 5:15
  SPEAKER_00: Um, but this particular prospect wasn't just looking for a tax repair or a bookkeeper.
• 5:22
  SPEAKER_00: They were looking for a partner.
• 5:24
  SPEAKER_00: They weren't just looking for someone who could check the box that their taxes were done and their bookkeeping was done.
• 5:30
  SPEAKER_00: They were looking for someone who could advise and grow with them.
• 5:35
  SPEAKER_00: And as a result, because that's what we do at Sidekick, they said yes almost immediately.
• 5:41
  SPEAKER_00: And now they're in the process of onboarding.
• 5:45
  SPEAKER_00: So let that be a lesson.
• 5:48
  SPEAKER_00: If this client is a fit, the price will make sense.
• 5:53
  SPEAKER_00: And it did for that prospect who's now a client.
• 5:58
  SPEAKER_00: It's really good, right?
• 6:00
  SPEAKER_00: If this client is a fit, the price will make sense.
• 6:03
  SPEAKER_00: And not to everyone, but to the right people.
• 6:07
  SPEAKER_00: When you price from clarity, what do you need out of your business?
• 6:11
  SPEAKER_00: How much do you need to pay yourself?
• 6:13
  SPEAKER_00: What is your overhead?
• 6:14
  SPEAKER_00: What do your margins need to be?
• 6:15
  SPEAKER_00: When you price from clarity instead of from fear, your a few things happen.
• 6:21
  SPEAKER_00: Your sales conversations, they calm down, they don't feel as heavy.
• 6:26
  SPEAKER_00: Boundaries get easier, profit stabilizes.
• 6:30
  SPEAKER_00: You stop selling to be chosen, and you start selling to be aligned.
• 6:36
  SPEAKER_00: So this week's action, because you know I'm all about taking action.
• 6:40
  SPEAKER_00: You got to do something after we have these conversations.
• 6:43
  SPEAKER_00: And it might be uncomfortable, but it's in the right way.
• 6:46
  SPEAKER_00: Look at your last three clients or sales conversations.
• 6:50
  SPEAKER_00: Or if you want a real deep reflection, take a look over the past year.
• 6:54
  SPEAKER_00: We're still in January.
• 6:55
  SPEAKER_00: Look and look at the past year of sales clients conversations and ask yourself, did I discount out of fear?
• 7:04
  SPEAKER_00: Sometimes there's a valid reason why you discount.
• 7:06
  SPEAKER_00: I'm not discounting, discount.
• 7:09
  SPEAKER_00: Good discounting, right?
• 7:11
  SPEAKER_00: But you want to make sure that you're not doing it out of a place of fear or out of a out of that lack, that scarcity, out of wanting to be chosen instead of making sure that you're in alignment.
• 7:24
  SPEAKER_00: Ask yourself, did I add value that wasn't priced in?
• 7:28
  SPEAKER_00: So are you over-delivering?
• 7:30
  SPEAKER_00: Now there's a difference between over-delivering because you're trying to keep clients, make people happy, and over-delivering because you are going above and beyond your clients' expectations, right?
• 7:43
  SPEAKER_00: And then finally, ask yourself, did I say yes faster than I should have?
• 7:49
  SPEAKER_00: And then I want you to choose one place to hold your line, set your boundary.
• 7:54
  SPEAKER_00: I want you to think, should I keep your price?
• 7:57
  SPEAKER_00: Keep my price, say no to scope creep, stop explaining and over-justifying.
• 8:03
  SPEAKER_00: Scarcity doesn't disappear when revenue grows, it disappears when our confidence does.
• 8:12
  SPEAKER_00: If your numbers feel tight right now, the answer might not be more sales.
• 8:17
  SPEAKER_00: It might be a little bit braver pricing, it might be look and a reflection and a little bit of a shift in your in your mindset.
• 8:27
  SPEAKER_00: So few things that you can do where I can help support you.
• 8:31
  SPEAKER_00: You can join my Facebook group, your accountingsidekick.com.
• 8:35
  SPEAKER_00: Or you can also, if you want help, aligning pricing with your real margins.
• 8:41
  SPEAKER_00: That's what we do at Sidekick.
• 8:43
  SPEAKER_00: So run over to chatwithmeg.com and you can book a consult with me and we can talk more about that as well.
• 8:51
  SPEAKER_00: Take action.
• 8:53
  SPEAKER_00: This is the Profit Points Podcast.
• 8:55
  SPEAKER_00: I'm Megan Schwann, your accounting sidekick, helping you replace fear with strategy and scarcity with stability.
• 9:04
  SPEAKER_00: And I will see you next week.
• 9:07
  unknown: Bye.
• 9:07
  SPEAKER_00: All right, that's your episode this time.
• 9:09
  SPEAKER_00: Don't forget your action steps.
• 9:11
  SPEAKER_00: I want you to actually do it, not just add it to the list.
• 9:15
  SPEAKER_00: If this episode was helpful, share it with a fellow business owner who needs to hear it.
• 9:19
  SPEAKER_00: And if you're ready to go deeper on your specific numbers, book a strategy call with Sidekick Accounting.
• 9:24
  SPEAKER_00: Go to chatwithmeg.com, and I'll see you next time on Profit Points.