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Pricing Advice?-Credit wiping

by bcos34
4 replies
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Hey Warriors-I'm looking for your opinions and suggestions on two questions I have.

A little background-I clean up (USA) people's credit reports and get rid of all negative items in about 90 days or less, average time being 30 days. Average score increases are currently 105+ points, some as high as 200+ from initial test group of about 30 people. It takes a hell of a lot of work but the results speak for themselves.

While I'm pushing this to be a premium item around $7,000+ (because of the cost and work involved, no one else currently produces results like these, and just in the mortgage industry alone could save a client tens of thousands of dollars over the life of the loan), my business partner feels that's too high. I feel that anything lower is really reducing the worth our service provides and the work involved.

My questions for you guys are:
  1. In your opinion, what do you think is a fair price to charge/what would you be willing to pay?
  2. How much would you want commissions to be if you were selling this as an affiliate?

Anything you share is highly appreciated! Thanks in advance
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  • Profile picture of the author Claude Whitacre
    Originally Posted by bcos34 View Post

    Hey Warriors-I'm looking for your opinions and suggestions on two questions I have.

    A little background-I clean up (USA) people's credit reports and get rid of all negative items in about 90 days or less, average time being 30 days. Average score increases are currently 105+ points, some as high as 200+ from initial test group of about 30 people. It takes a hell of a lot of work but the results speak for themselves.

    While I'm pushing this to be a premium item around $7,000+ (because of the cost and work involved, no one else currently produces results like these, and just in the mortgage industry alone could save a client tens of thousands of dollars over the life of the loan), my business partner feels that's too high. I feel that anything lower is really reducing the worth our service provides and the work involved.

    My questions for you guys are:
    1. In your opinion, what do you think is a fair price to charge/what would you be willing to pay?
    2. How much would you want commissions to be if you were selling this as an affiliate?

    Anything you share is highly appreciated! Thanks in advance
    Have you actually sold this service for $7,000?

    If you have, then it's a price you can get.

    I would check on other services that offer the same thing. See what they charge. You can charge more if you offer a money back guarantee with minimum changes in credit scores.

    Who are you targeting? Who buys credit repair services? Are you targeting wealthy people that have declared bankruptcy? ...Is it just people who don't pay their bills?

    Are you requiring the $7,000 up front? Do you think people with bad credit have a credit card that still has $7,000 available on it? If you finance it, remember that all your clients have proven that they don't pay their bills.

    Do you think you'll find affiliates that would sell a $7,000 product? And no matter how much you pay them, what if the client wants their money back? Are you able to pay it all back yourself?

    A quick Google search shows services at about $59 a month....with a guarantee.

    Can you show that your service is 120 times better?
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  • Profile picture of the author bcos34
    Hey Claude,

    Thanks for your reply!

    Yes, we have sold it for $7,000 and was even able to land 2 at $10,000, however, my partner is of the high quantity is always better mentality. I think high quantities would unnecessarily raise our cost of doing business and force us to expand personnel just to keep up instead of keeping costs reasonable, which is still a lot right now anyways.

    Our targets are currently the mortgage industry with clients that are turned away only due to their credit score/history, and industries where they can roll the cost of our services into the loan(s) they couldn't qualify for before, such as home improvement loans, etc.

    Mortgage industry clients pay up front, cost rolling loans are 50% upfront from the company selling the product/services and the remaining 50% after the client is funded.

    Great insights on the affiliates-I think we probably won't branch out that direction, though if we did, and a client wanted a refund, any earned commissions on the refunded amount would be deducted from the affiliate's balance but the client would still get their refund from us.

    While google shows low cost monthly credit repair solutions (your Lexington Laws of the world) they definitely don't get all of your negatives deleted from your credit report, and most certainly not in 90 days or anything shorter.

    I do have definitive results demonstrating that our services back up our claims; we have pages of ~100 point score increases in roughly 30 days (31/32 days here and there) along with pages from the bureaus stating they have deleted the information from the credit report, including inquiries, credit cards, personal loans, repos, etc. We've taken people who started in the mid 500s and brought them to the mid 700s after they were done in roughly 30 days.

    If any other company can really do that, especially for a $59/mo price point, I don't know why anyone suffers with bad credit. However, the monthly credit repair you find on google is meant to keep you on a monthly subscription, not to truly produce results like we can.

    While I understand people will search for low cost credit solutions, in my experience that only produces low quality results. There will always be people okay with low quality results, because hey, it's a result, and that's fine, they just aren't who we're targeting.


    Again, thanks for your insights Claude
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    • Profile picture of the author Claude Whitacre
      Originally Posted by bcos34 View Post

      Hey Claude,

      Thanks for your reply!

      Yes, we have sold it for $7,000 and was even able to land 2 at $10,000, however, my partner is of the high quantity is always better mentality. I think high quantities would unnecessarily raise our cost of doing business and force us to expand personnel just to keep up instead of keeping costs reasonable, which is still a lot right now anyways.

      Our targets are currently the mortgage industry with clients that are turned away only due to their credit score/history, and industries where they can roll the cost of our services into the loan(s) they couldn't qualify for before, such as home improvement loans, etc.

      Mortgage industry clients pay up front, cost rolling loans are 50% upfront from the company selling the product/services and the remaining 50% after the client is funded.

      Great insights on the affiliates-I think we probably won't branch out that direction, though if we did, and a client wanted a refund, any earned commissions on the refunded amount would be deducted from the affiliate's balance but the client would still get their refund from us.

      While google shows low cost monthly credit repair solutions (your Lexington Laws of the world) they definitely don't get all of your negatives deleted from your credit report, and most certainly not in 90 days or anything shorter.

      I do have definitive results demonstrating that our services back up our claims; we have pages of ~100 point score increases in roughly 30 days (31/32 days here and there) along with pages from the bureaus stating they have deleted the information from the credit report, including inquiries, credit cards, personal loans, repos, etc. We've taken people who started in the mid 500s and brought them to the mid 700s after they were done in roughly 30 days.

      If any other company can really do that, especially for a $59/mo price point, I don't know why anyone suffers with bad credit. However, the monthly credit repair you find on google is meant to keep you on a monthly subscription, not to truly produce results like we can.

      While I understand people will search for low cost credit solutions, in my experience that only produces low quality results. There will always be people okay with low quality results, because hey, it's a result, and that's fine, they just aren't who we're targeting.


      Again, thanks for your insights Claude
      With what you just posted, I'd go the $10,000 route. Perfect client selection, and it's easy to justify the price to them.

      After you make a few dozen sales, I'd start recruiting salespeople. Maybe pay them $2,000 a sale. I wouldn't do it online, but in person. This is the kind of selling that requires high end...concentrated training.

      But I wouldn't start hiring reps until you knew that you were comfortable hiring and training people. And it's a completely different skill set from selling.

      I see how you would be different from the cheap services.

      I understand the "Quantity route". But you are right about overhead expanding faster than the additional money taken in.

      For example, a $1,000,000 a year business may be able to be sustained with just you and your partner (and maybe one technical person to do some of the actual work). But 3 million a year? It may only make you 25% more, because now you need lots more space, employees, support, controls, a company guidebook, policies for employees, and 5 times the headache. And now you're working all day, at things you may not enjoy.

      Good luck. It seems you know what you are doing.
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      What if they're not stars? What if they are holes poked in the top of a container so we can breath?
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      • Profile picture of the author bcos34
        Thank you again Claude. Your insights are extremely helpful. Just bouncing thoughts off of another person not directly involved, as opposed to thinking within the same circle all the time, is very valuable to me. I really appreciate your point of view and thank you for looking for where holes could be. And thank you for the luck!
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