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Understand Premium Service Concept

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Really Bad Advice for Small Business

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What happens here

The presenter introduces the concept by comparing the mail delivery services of FedEx, UPS, and the United States Postal Service (USPS). While all deliver mail, FedEx and UPS have differentiated themselves by offering premium, faster services. This has allowed them to charge higher prices, proving that people are willing to pay extra for speed and improved service quality. This sets the foundation for applying similar pricing strategies to other service-based businesses.

Goal: Learn that shipping companies like FedEx and UPS successfully charge premium prices for faster delivery, even though the core service (mail delivery) is similar to standard postal services. This highlights the customer's willingness to pay extra for speed and perceived value.

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So, a few of you guys out there are absolutely flaming me. You've seen some of my videos where I'm putting two yards of mulch in and I'm charging $1,200 and you're saying, "Oh, you're ripping people off and you're taking advantage of them and all this and that and the other thing." No, you guys, I want you to think of FedEx. I want you to think of UPS. I want you to think of

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