Why “extra ranch” could be sabotaging your online business

ranch

We’ve ALL experienced this before (…and you might be the culprit).

You’re out to eat — maybe with some friends or family, and you ask the server for something “extra.”

For example, “Can I get extra ranch, please?”

And the server says, “Sure, it’s an additional 75 cents, is that okay?”

And you say, “Oh, never mind then, I’m fine.” 

WHAT. JUST. HAPPENED??

Or maybe you’re picking out your sides, and you say, “Can I have the salad bar as a side?” 

And the server says, “Sure, it’s just an extra $1.”

And you say, “Uhhh, I’ll just have fries then.”

WTF is happening!!

Let me explain where I’m going with this…

We’re out to eat, enjoying time with family and friends, maybe spending $5 for a beer, dropping $50-60 overall, yet we balk at an extra 75 cents for ranch or $1 for salad?

Why wouldn’t we just pay the extra 75 cents or dollar and enjoy our whole experience?? Especially because we’re already there and spending money.

It’s all psychological…

You don’t see this happening until someone points it out to you.

We are “set in our ways,” and don’t take time to actually think about the whole picture.

Just like you’ll see someone call a $50 shirt “expensive,” yet they’ll drop $100 on a bar tab without thinking twice.

I’m all for experiences, but the $50 shirt can be worn for 2-3 years — the $100 tab buys you a night of fun and a hangover.

But here’s the real reason I’m bringing this up.

This phenomenon happens in our business every single day.

Sometimes, we think so “backwards” about the money we spend in and on our business, we don’t even realize it’s happening. 

“OMG, I just spent $25 on ads and didn’t make a sale.”

Says the guy who spent $1000 on a website no one visits and $250 on a logo no one cares about.

“$5000 for a coaching program — what a waste of money!”

Says the guy who just went to a “conference” in Vegas, sat in the back of the room taking notes (…no ACTION), and blew $2500 at the Blackjack table.

Let me be clear…

I’m not judging these decisions — I’m just FASCINATED as hell by them.

Believe me, I make backwards decisions in my business too sometimes, but I’ve gotten better at recognizing them.

What are your thoughts on this? 

Why will we spend $300/month on a cable bill, but balk at $47/month for a monthly business community?

Why do we push our business to the backseat, when it is what GIVES us the ability to spend on those other experiences?

Is it because we’re scared we won’t take action?

Scared our investment won’t pay off?

Or do we just not take our business as seriously as all the other stuff in life?

I don’t know the answer…that’s why I’m asking YOU.

Comment below and let me know what you think!

5 comments

  1. Pierre-Alain Dion

    It is all about perceived value.
    If I spent money on beer, I know what I am going to get.

    If I spend money on a t-shirt, I know they are better clothes that last longer. So here this t-shirt that lasts only for a couple of years is perceived as cheap.

    As for Coaching programs … I have been disappointed too many times to believe it is worth the money. It is up to the coach to convince me that he or she is worth my money and most of all my time.

    Spending time on following the coaching program and finding out later what I learned was already outdated OR worst .. the coach is a fake who fakes it to make money is a horrible experience that entirely destroys the trust the customers have in the internet marketing industry and in the coaching programs.

    I did not follow any coaching myself, but I have heard too many bad stories to blindly trust anymore. I did pay a lot of online courses who turned out not to be great and certainly not worth the price since almost all of the content (99%) is available for free online.

    Why would a coach share his tricks to make A LOT of money when he or she can use these tricks to make their money. Why create competitions? Why would the coach make things harder?

    Successful marketers are busy marketing because there is money to be made. If I was successful, I would keep secrets anything that gives me the advantage over others.

    • To answer your question:

      Do you know who Steph Curry is?

      Probably the best NBA player right now (…maybe Lebron James).

      Anyways, if Steph Curry makes so much money playing in the NBA, why does he ‘waste his time’ doing commercials and other endorsements?

      Why does he ‘waste his time’ running a basketball camp each year, charging people $2000 to attend?

      Wouldn’t he just focus on basketball…?

      Well, it’s because he’s capitalizing on his success, and using it to make money in other areas during the peak of his career.

      Just like many successful and honest coaches do. They’ve mastered something, and it opens up another revenue stream to teach others.

      “Why would a coach share his tricks.” You mentioned this creates competition for the coach.

      That’s your right to feel that way, but that is also a scarcity-based mindset, meaning that you think if someone learns how to do what you do, it somehow takes away from your chances of being successful. Is that how you feel? If so, that’s okay, just a difference of opinion.

      You are right about one thing…

      There are many bad apples out there, but please don’t assume everyone falls into that category.

    • Pierre-Alain, I have to agree with one thing. It is always about perceived value, however, I don’t think it’s necessarily about perceived value of the item, as much as it is perceived value of ourself.

      In the example, $1 for a salad. Is that going to break the bank? No. Could I get a bigger/fresher/better salad for $1 elsewhere? Possibly. My decision is not really based on the money as much as it is on whether I think I deserve it or it will benefit me. My decision comes from my internal self-value: Do I deserve a salad? Do I really want the healthier option? Can I really eat healthier? Will it change me? Can I change me? YES – pay the $1, NO – Get the fries.

      Same goes for high-end coaching. I am whinge and moan until the cows come home about the price, this happened to X, Y said this about it…Or I can put the $$ down and take the action. Am I worth investing in? Will it help me reach my goals? DO I DESERVE THIS? Do I deserve to invest in me?

      The outlook we have at the end can also determine how we respond to things. If I eat this one salad will I suddenly have the physique of a marathon runner? Uh, no…Takes more than 1 salad to get there. So, I can look at this $1 upsell salad and think “Nah, it won’t matter” or I can look at it and think “It’s one step in a long journey towards my goal”. Same with coaching – Sometimes we don’t get the exact results we pay for, but we get something far more important, if we care to look at it in the right light. (Even the shittiest coaching programs teach you something).

      Here’s a personal example:
      The first high-end coaching I paid for was a huge decision. I was 22 and it was a little over $5k to become a life coach (new concept back in 2002). It had to come from the savings I’d been putting together from my teaching salary to buy my first property.

      Huge decision! Massive. I felt like vomiting when I decided to take the plunge. BAM.

      $5k for 6 days training, some guides on what to do and how to use the newspaper to get clients (OMG – that long ago)! 😀

      Did I become a life coach? No, not how they suggested. Not even close.

      Was I pee’d off at the coaches for that? No! I chose not to take the action I needed and had my own fears that held me back at that time.

      Did I blow $5k on a pointless coaching course? Hell no! I am now 37, and to this day, I still think it’s the BEST decision I have ever made. That course changed my life. I didn’t become a life coach in the common sense but I learnt SO much about myself and human nature. It changed my ENTIRE outlook on everything in my life. Two massive things I learnt and still use today (15 years later):

      1. I can’t control what I can’t control – I used to freak out if I was 1 minute late to something. I’d get into a complete tissy over it. Meltdown, tears. The coach told me my action was that I “have to be late in the morning to EVERY day that was left”. After a mild panic attack, I did it (and hated it initially), but became more comfortable with it. At the end she asked me one important question: What happened when you were late? I replied “Nothing.” Nothing happened. The world didn’t end and I didn’t miss anything. I no longer panic if I’m a few mins late and don’t get frustrated at other drivers on the road…Because I can’t control it AND the world won’t end, so I stopped worrying about it.

      2. Don’t be a victim and get out of your own way – This has been the BIGGEST thing for me. I come from a long line of victims. I can’t do this. X Never changes. Y is happening again. My life sucks. Blah blah. In business and life I have control over what happens to me. I make the choices. I CAN do this. X will change if I change what I’m doing. Instead of letting Y happen again, what can I do to get a different result?

      TL;DR –
      The end of this loooong reply is that you get what you expect based on what you think of yourself and the language that you use.

      If I want to have the physique of a long distance runner, I’ll take every little opportunity to get there, including fueling myself with the right food. If I don’t really want to do that, I’ll find every excuse not to, including the $1 salad.

      If I want to be a life coach/successful business owner/dog trainer, whatever – I’ll take all the actions and training and make it happen no matter what. I will tweak what needs tweaking, learn from everything and keep moving forward and adapting. If I don’t really believe I can, I will stop, hesitate, get shiny object syndrome, look for excuses why it won’t work, blame other people, etc.

      Our decisions all come down to what we think of ourselves. What we think we are worth. What we think we can achieve.

  2. It’s called instant gratification for some….Everyone wants to be given a silver spoon without putting in the work. People I know throw money at any shiny object an internet “GURU” develops and says make a million dollars with this one special tool….We buy it and it sits in a folder on our computer collecting dust because we want instant gratification thinking this tool will magically bring me wealth. Then mix in a little fear of taking a risk and it paralyzes most people. People I know have a desire to break away. They know what they want but its the fear of failure, the fear of walking away from a corporate job that strangles us like a python with a few benefits and a healthy paycheck and then the “WHAT IF’s” begin. People want a guarantee. My family, the bills, the house and the downside if it doesn’t work. It’s a vicious cycle that only a few seem to be able to break from.

    • Great feedback, Kurt.

      “People want a guarantee.”

      Ironically, the closest thing to a “guarantee,” is a job that pays every 2 weeks, and gives you predictability.

      Yet, people seem to run from that too.

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