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BigDeal by Codie Sanchez

Do This One Thing to 2x Your Business

My new book Own Or Be Owned is out now! I wrote Own or Be Owned to answer one question: How do you make more money, less miserably?

Codie Sanchezhost

May 5, 202520mWatch on YouTube

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CHAPTERS

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Chapter summaries

Why Pricing Is the Ultimate Growth Lever
Codie Sanchez opens by arguing that low prices signal low value and that raising prices makes more money and increases how much customers value the product. She explains why she makes these Build episodes and why small businesses tend to underprice out of fear.
- •Low prices make a product be perceived as low value
- •Pricing is called the ultimate growth lever that most small businesses overlook
- •Pricing dictates profits, customer quality, and brand perception
- •Codie invests in small businesses and hopes viewers may partner with or sell to her
- •The episode is framed around a Steve Jobs clip on making products you're proud to sell
Six Action Steps for Better Pricing
Codie lays out her six-step plan: raise prices, compare against competitors, test and track, offer tiers, communicate value, and monitor and adjust. She also promotes her contrarian operating system for builders.
- •If it's been over a year since you raised prices, you're behind
- •If you're the cheapest, you're likely undervaluing yourself; there's no value in being second cheapest
- •Raise prices incrementally and measure customer response
- •Expand from one price to at least three tiers
- •Frame price changes around quality, and monitor and adjust rather than set and forget
Big Brands That Raised Prices and Won
Codie uses YouTube TV, Netflix, Starbucks, and Amazon Prime as examples of companies that raised prices and still grew. Netflix's approach combines multiple tiers with un-grandfathering existing customers.
- •YouTube TV rose from $34.99 in 2017 to $82.99 in January 2025 while subscribers kept growing
- •Netflix went from $8 a month in 2007 to $23 today, lost a million customers at first, and now has 300 million paid subscribers
- •Netflix offers multiple tiers and uses an un-grandfathering strategy
- •Starbucks was criticized for its 2023 price hike but revenue came in above estimates and order value rose
- •Amazon Prime roughly tripled its price
Value Bundling and Market Position Assessment
Codie asks how smaller businesses can steal big brands' homework, starting with value bundling and then assessing market position. She uses her window cleaning company, her gym, and landscaping as examples of how indispensable a business is to customers.
- •Bundle new benefits so customers stay on recurring plans, as with her window cleaning company's power washing
- •Check how indispensable you are to customers and how much they notice price changes
- •The friction of changing habits can outweigh a small price increase
- •Wealthier customers value convenience and continuity over price and discounts
- •Landscaping's scheduling hassle may give more price defensibility than expected
Three-Tier Price Implementation
Codie describes raising prices across customer segments, starting with the highest value tier after adding value to the offer. She then pairs this with upgrade offers that move customers from low to mid to high tiers.
- •Add value, then raise prices for the highest tier, then the mid tier, then the low tier
- •Over 3 to 12 months every segment gets a price increase
- •Offer low-tier customers an upgrade, such as basic to premium car wash
- •Customers get a choice and value at each level
The Math: Monetization Beats Acquisition and Retention
Codie says there are three ways to make more money: acquire, retain, or charge more. She cites a Y Combinator study showing a 1% increase in monetization yields far more growth than the same increase in acquisition or retention.
- •Three growth levers: acquisition, retention, and monetization
- •A 1% increase in new clients yields about 3.5% growth
- •A 1% increase in retention yields about 6.6% growth
- •A 1% increase in monetization yields about 12% growth
- •Pricing is therefore one of the easiest and highest-return levers to obsess over
Fear of Losing Customers and Competitors
Addressing the worry about losing customers, Codie argues price-sensitive customers are less loyal and raising prices filters for right-fit customers. She brings in Peter Thiel's view on competition versus monopoly and says differentiation on value, not price, gives control over pricing.
- •Price-sensitive customers jump ship when something cheaper appears
- •Raising prices filters out bargain hunters and reveals right-fit customers
- •Peter Thiel is quoted on perfectly competitive businesses versus monopolies
- •Price shouldn't be your selling point; focus on value and quality
- •The ability to set prices comes from unique value
Signs It's Time to Raise Prices
Codie gives telltale signs a business is ready to raise prices: demand outstrips capacity, prices haven't moved in a year, competitors charge more, and a premium image matters. She cites inflation and her portfolio companies' three-month pricing reviews, and plays another Steve Jobs clip.
- •Selling out or being unable to keep up with demand signals room to raise prices
- •Inflation alone justifies a 2 to 5% annual bump; her portfolio companies review pricing every three months
- •Pricing well below competitors can signal low value
- •High-end brands aren't bashful about prices, and prices filter out penny pinchers
- •Louis Vuitton at $30 is used as an example of price signaling value
Price Tiers, Commercial Rates, and Subscriptions
Codie continues the signs list with multiple price tiers, higher commercial rates, subscription options, and incentives for longer commitments. She shares a landscaping example of replacing custom quotes with three options and cites a YC partner on SaaS recurring revenue.
- •Start with three tiers such as basic, pro, premium
- •A landscaping business replaced custom quotes with three options
- •Commercial work usually carries a 20 to 100% premium over retail
- •Subscriptions provide predictable recurring revenue
- •Offer discounts for six to 12 month commitments to accelerate cash forward
How Netflix Botched Its Price Increase Message
Codie walks through Netflix's recent price increase notice as the wrong way to communicate. She critiques its lack of personalization, missing value, and curt tone, and rewrites the hook around hours watched.
- •The email thanked Joe for being a member since 2019, then announced the increase to $17.99 with no reason given
- •Netflix added no personalization or reminder of value
- •The accompanying email listed shows people weren't excited about
- •Customers filled the context gap with their own anger and the stock took a hit for a time
- •Her rewrite frames the increase around cost per hour of viewing
Communicating Price Increases Honestly and Closing Thoughts
Codie shares advice from her friend Patrick Campbell: base the increase on clear reasons and show customers you care by telling the truth. She closes by saying margin is what lets you beat competitors and asks listeners to share the show.
- •Pair your reasons for raising prices with a message that shows you care
- •Example message explains raising prices only to cover costs amid tariffs
- •Without margin you can't beat competitors
- •Whoever makes the most money wins because they can pay more for customers
- •She invites comments on proposed price increases and will respond

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