In this episode of The Pricing Lady, I
sit down with Vena Vega-Danemar of Legally
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:She Can to talk about pricing and legal.
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:This is part one of a two part series.
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:Please note this conversation
is for information only.
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:It's not legal advice and does not
create a lawyer client relationship.
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:I had loads of questions for Vena.
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:You're going to love this.
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:So sit back, relax, and enjoy the episode
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:. Janene: Hello and welcome everyone
to The Pricing Lady podcast, where
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:smart business owners price with
purpose and profit with clarity.
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:Today I'm very excited to have my
guest, Vena Verga-Danemar, from Legally
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:She Can here with us on the show.
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:Hi Vena.
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:Hello there, Janene.
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:Hi everyone who's listening today?
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:Oh, it's not live is.
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:No, it's not.
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:But that's okay.
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:Yeah.
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:Yeah.
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:Hello to those of you who are listening.
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:Vena, why don't we start with a couple
of quick questions, first of all?
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:Sure.
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:Where are you calling in from today?
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:I am calling from my office that also
doubles as my podcast studio in Zurich,
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:also known as the Danemar Household.
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:Vena, what would you call your superpower?
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:My superpower.
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:So I would say there I have two
superpowers the most I think what
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:a a lot of people know is I can
simplify complicated legal stuff.
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:Mm-hmm.
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:My second superpower is, I would say,
based on my scale of being able to speak.
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:Two languages fluently.
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:And when I say speak two languages, it's
not English or German because mm-hmm.
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:My German is so bad, but rather I
can balance, the two languages of
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:law and entrepre entrepreneurship.
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:Mm-hmm.
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:You will always see me sometimes
pushing back on legal advice
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:that don't really reflect on the
realities of small business owners.
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:Mm-hmm.
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:Or at the opposite of the spectrum,
you, you'll see me correcting business
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:advice that contradicts legality.
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:So I think my superpower is.
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:Being able to guide my clients
in a more balanced center path.
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:Mm-hmm.
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:That has still, that allows them to
be protected and at the same time
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:still has the business momentum.
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:Right.
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:The freedom to operate.
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:I love that.
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:Exactly.
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:I love that.
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:What's one interesting thing
you'd like to share with us that
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:most people don't know about you?
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:Most people knew that I
started my business as a
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:product-based business owner.
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:Mm-hmm.
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:But what.
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:A lot of people don't know is that when
I started this, business, I actually
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:handmade and hand delivered our products.
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:We were doing, um, quiet books for
toddlers, uhhuh, and in the beginning
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:I have my child on tool wrap around
me and I was delivering 20 books at
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:a time in Zurich and neighboring.
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:Contents.
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:Mm-hmm.
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:So I, I wanted to share this
experience because I wanted people
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:to know that, you know, you can
start a business from scratch.
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:Mm-hmm.
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:And by the time we closed it in 2013,
we were already exporting it to the eu.
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:Mm-hmm.
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:And this experience, I think
also explains why I have so much.
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:Empathy mm-hmm.
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:Towards my clients, because when I
say that I understand what they're
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:going through, I, I actually
do because I walk their path.
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:I love that.
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:Excellent.
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:We're learning so much about you.
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:Mm-hmm.
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:Why don't we turn this a little bit
and you can share with us what your
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:business currently is and the mm-hmm.
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:Kind of value you bring clients.
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:Vena: Yes.
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:So right now my business
is Legally She Can.
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:Mm-hmm.
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:And this really started
at the height of COVID.
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:As I mentioned a while ago, I
jumped into entrepreneurship
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:as a product-based business.
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:But during COVID there was a global
delay in transportation of products.
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:Mm-hmm.
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:And we were heavily dependent
on this one particular felt that
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:you can only import in Korea.
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:So the problem was because 80% of our
product is made out of this felt, and the
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:product is CE marked, meaning you cannot
just change the process and the materials.
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:Mm-hmm.
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:I found myself having lots of time
because the delivery and the, you know,
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:making the products were all delayed.
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:Right.
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:So, because I had so much time,
I said, you know, why don't
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:I do all of these q and as.
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:Because I still have a lot of
colleagues who because they knew I was
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:a lawyer in my previous life, mm-hmm
ask me about cross border sales.
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:My idea was just to give
back to the community.
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:Mm-hmm.
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:So I hosted Q&As in 2020, by 2021 it grew
to full blown webinars almost monthly.
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:Janene: Wow.
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:Vena: And then I saw a problem.
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:Mm-hmm.
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:The usual problem that is
being faced by my audience.
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:They always see legal as very
expensive, overwhelming, complicated.
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:Mm-hmm.
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:And so the tendency was they would
depend on blind Google search or
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:free templates or free generators,
which will always lead to more drama.
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:Mm-hmm.
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:And so also during this time, we know
that everyone are already online and
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:that there was no one source of truth.
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:Mm-hmm.
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:The blogs that we see online,
they're all dominated by US lawyers.
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:Mm-hmm.
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:Whose advice are correct, but
it's insufficient once we are
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:dealing with EU and Swiss clients.
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:Mm-hmm.
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:And also there's the problem with
lawyers, traditional lawyers who
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:are just using the framework that is
applicable to brick and mortar companies
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:and applying it to small businesses
that are doing their business online.
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:Mm-hmm.
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:Or they would be using a
framework that can only be used
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:for multinational companies.
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:Right.
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:So, of course I cannot blame them
because online business is something
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:that is not taught in law school.
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:Mm-hmm.
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:Mm-hmm.
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:So.
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:I found myself, actually, you saying
what I've experienced as a, uh, as
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:an online business owner myself.
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:Mm-hmm.
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:And I was trying , to close this
gap mm-hmm through Legally She Can.
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:So I focused on legal education,
legal information, and my idea
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:was, if I can help you align your
business, it'll be easier for
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:your clients to trust you faster.
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:The main goal I want for my clients
to reach is legal empowerment.
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:Mm-hmm.
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:Yeah.
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:Because I believe that if you are
clear, you have legal clarity,
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:it'll build trust and if you have
trust, then it'll build growth.
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:Mm-hmm.
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:Yeah.
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:Super.
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:Janene: I always find when we
talk and we've been, working
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:together with each other.
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:Yes.
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:With Paulina.
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:Yes.
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:I keep finding so many parallels.
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:I keep joking that pricing and legal
aren't considered the sexiest things.
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:Vena: No, no, exactly.
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:But they are important,
but very important.
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:Yes, yes, yes, yes.
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:Yeah.
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:Yes.
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:I actually believe that, you know,
pricing and legal, you should use both
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:of these as a way to sift your clients.
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:Janene: Yeah.
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:Vena: This is how you will protect your
personal and your business boundaries.
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:Janene: Mm-hmm.
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:, Vena: You become more choosy with the
people that you work with, and this always
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:translates to you not having clients
that will just lead to headache later on.
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:Janene: Right, right, right.
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:Yeah.
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:I love that you bring this up.
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:Vena: Yes.
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:Janene: There were two reasons I
wanted to have you on the show.
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:Vena: Yes.
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:Janene: One is to raise awareness
of the legal aspects in pricing that
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:small businesses tend to overlook.
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:Yes.
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:And then also to help my
audience understand mm-hmm.
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:How to stay compliant in the context of
pricing without feeling that overwhelm.
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:Right?
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:Yes.
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:So pricing's already overwhelming enough.
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:Vena: Exactly.
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:Janene: I think a lot of people aren't
aware there may be some legal, things
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:to consider when it comes to pricing.
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:Yes.
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:And so I wanted to make sure that we
had the opportunity to talk about that.
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:Yes.
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:Before we get into that, I have two
questions, maybe three, just to dig into
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:your own pricing journey for a moment.
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:Becuase that's what I usually talk
about with my guests on the show.
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:Mm-hmm.
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:When you first had to set a price for that
first product or that first thing that
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:you offered, what was that like for you?
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:Vena: Oh, I didn't know what to do.
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:Because as a lawyer, we were
taught that you should treat it as
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:a profession and not a business.
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:So it's not a money making venture.
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:So when I jumped into entrepreneurship,
I didn't have an idea what to do.
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:Because, well, for one, I jumped
into entrepreneurship just thinking
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:that since I was advising, business
clients, I would definitely know how
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:to price or how to do my pricing right.
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:Or do the business.
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:But no, it's not.
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:When I jumped into entrepreneurship,
I didn't have that, what
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:I call pricing muscle.
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:Mm-hmm.
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:And so my instinct was, of course, like
everyone else, they would look around.
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:I looked around and that gave me a
sense of what the market was doing.
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:Mm-hmm.
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:And how people were
positioning themselves.
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:Mm-hmm.
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:But at the same time, it was the
fastest way to end up to, you know
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:what I call raise to the bottom.
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:Yeah.
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:Because you are just comparing prices.
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:And that is also a way where you
will just look like everyone else.
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:Mm-hmm.
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:Or that's also the reason
why you would burn out before
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:your business actually grow.
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:Right.
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:Or grew.
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:So the shift came a few years in when
I was already starting legally She Can.
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:I found myself still working 60
hours a week, like I was in a
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:law firm trading time for money.
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:I thought that, you know, I'm giving so
much value to my clients and they kept on
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:telling me, you should raise your prices.
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:And that hit the, you know, the, that
was the point that I realized I need
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:to increase my prices, right and let
the value that I bring be my guide.
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:Mm-hmm.
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:Mm-hmm.
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:And as I've mentioned a while ago,
pricing became a boundary to me.
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:I realized that those people who really
wants to work with you, they will pay.
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:Yeah, and I actually equate this
with having contracts, for example.
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:Because everyone, or most of my clients
who would go to me, they would say,
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:please don't make a contract that is so
long because it'll scare my clients away.
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:But no, your pricing, your legalities,
they actually do the opposite thing.
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:Mm-hmm.
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:They attract serious clients because
they know that you are serious.
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:Right.
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:And that's the way they
will value you more.
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:Right.
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:Yeah.
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:Let your prices, your
pricing, sift your clients.
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:Janene: I love that.
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:Using it as a filter.
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:Vena: Yeah.
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:Yes, exactly.
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:Exactly.
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:Janene: Absolutely.
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:Absolutely.
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:And what would you say was
your biggest learning over
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:the years about pricing then?
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:Vena: If you have a pricing that
reflects the value that you give mm-hmm.
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:You will have more time and
energy to deliver your services.
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:And that is actually the goal here.
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:To have a sustainable growth, to be in
a place where you can sustainably grow.
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:Mm-hmm.
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:And you can achieve this through
better pricing that reflect your value.
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:Janene: Mm-hmm.
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:Love it.
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:Excellent.
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:Okay.
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:Vena: We have so much parallels.
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:Janene: There are, there really are
boundaries and all of these things.
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:Exactly.
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:It's really quite, it's
really quite interesting.
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:I agree.
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:Trust.
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:So now let's shift a little bit, 'cause
I'd like to get into some of these
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:legal and pricing related questions.
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:Yes.
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:My first question is around jurisdiction.
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:So if you're here in Switzerland
and you have clients in the EU or in
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:the or in the US, what rules apply?
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:Mm-hmm.
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:Where, you know, what's the general
rule of thumb for understanding that?
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:Or if you're in the US and you
have clients over here mm-hmm.
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:What, what applies and what doesn't
or what do you need to be aware of?
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:Yeah.
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:Vena: So yeah, that's a very good
question because it will frame,
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:I think, our whole conversation.
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:Exactly.
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:So yeah, first things first.
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:I'd like to put it out there.
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:Mm-hmm.
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:That people always find legal overwhelming
because they think that these are
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:just random rules applied randomly.
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:So I would always say to my clients
and to the, to the audience.
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:Mm-hmm.
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:That you should understand
the why behind the rules.
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:If you understand the why, it'll
be easier for you to remember this.
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:So when it comes to pricing,
there are three things.
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:Mm-hmm.
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:I would say that I want people
to remember first is you have to
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:differentiate if you are working with.
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:Clients that are consumers and
clients that are businesses.
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:Okay.
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:B2C and B2B.
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:Mm-hmm.
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:Because when you are dealing with
consumers, there are laws that we call
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:consumer protection, laws consumer loss.
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:Mm-hmm.
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:And these are the rules that you
need to follow because the laws
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:wants to protect the consumers.
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:Which are usually the weaker party mm-hmm.
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:In this relationship.
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:Mm-hmm.
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:And these rules do not apply usually
if you are dealing with B2B or
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:business to business scenario.
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:Right.
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:Wherein there is more flexibility,
you could agree on the terms that
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:will govern your relationship.
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:Mm-hmm.
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:So that is the reason why people
are confused, because they're
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:also confusing the relationship.
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:Is it B2C or B2B?
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:That's number one.
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:The second thing, which you
asked a while ago was, mm-hmm.
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:If we are talking about consumer
rules, consumer protection laws mm-hmm.
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:You have to take into account not only
the rules where you are located, but also
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:the rules where the consumer is located.
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:Mm-hmm.
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:Because otherwise it'll defeat the laws.
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:You know, you have a US business
saying that I will not follow the
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:consumer rules in the EU, even if
they have EU clients or Swiss clients.
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:Mm-hmm.
327
:Because they're not in the eu.
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:So it defeats the purpose, isn't it?
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:Right.
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:The purpose of, uh, consumer laws is
to protect the consumer, so you follow
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:the rules where your clients are.
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:Mm-hmm.
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:Which also means that if you
are in Switzerland mm-hmm.
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:You have EU clients, you need to
follow consumer laws in the EU.
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:Okay.
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:So that is a B2C.
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:Mm-hmm.
338
:If it's B2B, as I've mentioned a
while ago, you can agree on the terms.
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:Mm-hmm.
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:Which also means you can agree on what
laws will apply in your relationship.
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:Ah, that's the difference.
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:Okay.
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:And the third thing that I would
like the listeners to really
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:remember is the word transparency.
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:It will.
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:It's the why to all of this
that we are talking about.
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:You are required to be transparent
in your dealings with your clients.
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:May it be consumers or business owners.
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:Yeah.
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:Okay.
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:So I hope that you know that that
summary that helps and makes you
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:really understand what will apply
to me or what loss will I follow.
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:Janene: Yeah, I admit,
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:I never thought about about it,
the difference between B2C and B2B.
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:Yes.
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:But that makes absolute sense.
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:Yes.
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:That's really interesting.
359
:And when it comes to transparency, we
used to always kind of joke in my former
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:lives that you, you know, the laws were
to be as transparent as possible with
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:your customer's yes and as intransparent
as possible towards your competition.
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:Vena: Yes.
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:I mean, of course you don't want them to
just look at you and what you're doing.
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:Janene: Which trying to do those
two things at the same time, yes.
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:In the public form are quite challenging.
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:Vena: There's a balance.
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:Okay.
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:And that balance is something
that we cannot just teach.
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:It's something that you
learn through experience.
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:Janene: Right, right, right.
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:I mean, and some things also, I would
guess depend on the type of business or
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:the size of the business, the amount of
market share you have so on and so forth.
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:Yes.
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:But if we're talking about
small businesses mm-hmm.
375
:We probably don't have to worry so much
about market share and things like that.
376
:Mm-hmm.
377
:My next questions are around, especially
here in in Europe where you have, VAT.
378
:Mm-hmm.
379
:And there are some rules
about displaying prices.
380
:You know, funnily enough, one of the
most often asked questions I get is,
381
:should I put prices on my website?
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:But no one's actually asked me what
they should put on their website
383
:Exactly in terms of they should
ask how to display it, right?
384
:Yes.
385
:So when are businesses legally
required to show a price.
386
:Mm-hmm.
387
:And when does VAT come?
388
:When do they have to
include it or not include?
389
:Or do they have to?
390
:Mm-hmm.
391
:Vena: Yeah.
392
:Alright, so let's talk about
VAT because it'll connect later
393
:on to your other question,
394
:Uhhuh.
395
:So we have to ground this VAT.
396
:Also, during my webinars, I'm always
asked, you know, should I put VAT?
397
:My next question is,
are you even registered?
398
:Why are you talking about
VAT if you're not registered?
399
:Because VAT, it's a tax on
consumption, meaning it is the
400
:end user, it is your client, the
end user who actually pays for it.
401
:You as a business owner, all you have
to do is to charge it, collect it, and
402
:then remit it to the tax authorities.
403
:Mm-hmm.
404
:And because that is your only
role in this, relationship.
405
:You can only show and charge
VAT if you are VAT registered.
406
:That's the number one rule.
407
:Mm-hmm.
408
:The next question is, when
do you need to register?
409
:Well, it depends on several
scenarios and we don't have time
410
:to go through all of them today.
411
:Maybe I can give you a link
to one of my masterclass.
412
:Mm-hmm.
413
:But yeah, there are several scenarios.
414
:Mm-hmm.
415
:But.
416
:If we look at Switzerland,
what is the rule?
417
:It is easy to follow the
rule in Switzerland because
418
:it is quite straightforward.
419
:Mm-hmm.
420
:In Switzerland, if you have Swiss
clients, if you are earning more
421
:than a hundred thousand francs,
then you need to register.
422
:Mm-hmm.
423
:But you need to plan early.
424
:Do not wait until you reach that amount.
425
:Why?
426
:Mm-hmm.
427
:Because you might find yourself
having to charge that retroactively
428
:or to reissue invoices.
429
:Mm-hmm.
430
:Or worse, pay the VAT yourself
from out of your pocket.
431
:And that will be very painful, right?
432
:So you have to think of VAT.
433
:Early on, I'm not saying that you should
register, but you have to think about it.
434
:Mm-hmm.
435
:And then later on you will
also see that thinking about
436
:VAT will affect how you price.
437
:Yes.
438
:Okay.
439
:My my tip is talk to your accountant
and see if it, it really makes sense
440
:for you to register for VAT early on.
441
:Mm-hmm.
442
:The next thing that I want people
to know is that Swiss vat in EU vat,
443
:they're completely different animals.
444
:Yeah.
445
:Do not confuse them.
446
:Yeah.
447
:So it's possible that in Switzerland
you still don't have to register.
448
:Mm-hmm.
449
:But in the EU, you already need
to register because mm-hmm.
450
:For example one of your offers are,
is a digital product in the EU.
451
:You need to register from the first
sale if you have a, a digital product.
452
:Mm-hmm.
453
:Eh, so that's one of the things
that you need to remember.
454
:Do not always think that only
the Swiss rules apply to you.
455
:It always depends on the
products that you are selling.
456
:So let's go to your question
on how to display it.
457
:Mm-hmm.
458
:So when you are VAT registered,
let's assume you registered
459
:in Switzerland or the EU.
460
:We have to look at different laws
in Switzerland, we look at the
461
:Swiss price ordinance, the PBV,
and my, I know I'm gonna butcher
462
:this Preisbekanntgabeverordnung.
463
:So you have to look at this
if you have Swiss clients.
464
:If you have EU clients, you have to
look at consumer protection directives.
465
:Mm-hmm.
466
:Basically these laws, these ordinances.
467
:Have the same spirit.
468
:Mm-hmm.
469
:And the spirit of this law says
that you need to show a price to a
470
:consumer and that price should be the
amount that they will actually pay.
471
:Right.
472
:Okay.
473
:That is the line.
474
:So what does it mean?
475
:Mm-hmm.
476
:It means that if you have consumers, as
your clients, you need to have a price.
477
:What is the price?
478
:That price should be the, the
amount that they should pay.
479
:Mm-hmm.
480
:Which means that the VAT is included
if you are registered for VA vat
481
:and also all the mandatory charges.
482
:Mm-hmm.
483
:Mm-hmm.
484
:So that is the rule.
485
:If you have B2C clients.
486
:Yeah.
487
:So what are we trying to avoid here?
488
:Mm-hmm.
489
:You, we are avoiding.
490
:Surprise platform or processing fees.
491
:Mm-hmm.
492
:That sometimes you only see it, you
know, during the checkout or worse,
493
:you only see it that, that crazy.
494
:Yes.
495
:You only see it in your
credit card statements.
496
:Right.
497
:Yeah.
498
:So that is what we're
trying to avoid here.
499
:Mm-hmm.
500
:So in case of doubt, you
should always be transparent.
501
:Again, we go back to transparency, right.
502
:Rule is very simple.
503
:Mm-hmm.
504
:B2C show the prices, the
price should be all inclusive.
505
:Okay.
506
:Right.
507
:Right.
508
:Now there are instances I can
think of, at least three instances
509
:where you can separate the VAT.
510
:Mm-hmm.
511
:The first instance is, of
course, when you are working with
512
:businesses in a B2B situation.
513
:Mm-hmm.
514
:In the B2B situation, again the pricing,
the consumer loss does not apply.
515
:So you can have a price
and say, excluding what?
516
:So that's one scenario.
517
:The second scenario is
you are creating invoices.
518
:Because in invoices you have to
separate the net amount from the vat.
519
:Mm-hmm.
520
:And this is more because it is easier
to do accounting that way, isn't it?
521
:Right.
522
:So it's easy to remember this
because there is a reason for it.
523
:Right.
524
:And the third exception mm-hmm,
applies if you have EU clients
525
:only, not if you have Swiss clients.
526
:Right.
527
:So in the EU, if the VAT, you
genuinely cannot know it beforehand.
528
:Because say the client still has to
select the delivery country, then
529
:you can say that the VAT will be
calculated based on the delivery
530
:country or shown before you pay.
531
:That's one of the exceptions where
you can actually separate the vat.
532
:Right.
533
:Okay.
534
:Because you cannot know it
before and it applies in the eu.
535
:Why?
536
:Because in the EU they
have different vats there.
537
:Right?
538
:In Switzerland we have one standard.
539
:So what's, what's the reason of separating
it if you are already VAT registered?
540
:Right.
541
:Right.
542
:Yeah.
543
:Janene: Okay.
544
:Excellent.
545
:Wow, thank you.
546
:Learnings a few things here myself.
547
:I love it.
548
:That's where we'll pause for now.
549
:We've covered a lot already
and we've just gotten started.
550
:In part two Vena and I tackle the
trickier stuff, discounts, currency
551
:rules, and how Geoblocking can land
you in hot water if you're not careful.
552
:Hit follow now so you don't miss out.
553
:Have a great day.
554
:I'll see you next time.
555
:And as always, enjoy Pricing.