Make Your Product More Valuable WITHOUT Changing Your Product At All
Read the definitive guide to offer creation
The Definitive Guide to Offer Creation
The Definitive Guide to Offer Creation
The Definitive Guide to Offer Creation
Financial Educators, Creators and Consultants – this is for you.
You might think you have a traffic problem – just not enough people coming to your website.
You might think you have an ads problem – paid ads just don’t work for your business.
You might think you have a conversion problem – people hit your page, but then don’t do anything.
You might think you need to grind and work harder.
You might think that sales just isn’t for you – it’s tricky to get people to give you money. I’m no good on the phone.
All these things could be true, but in my experience, the REAL problem is that you don’t have a good enough offer.
Your offer is the #1 driver of profit in your business. It’s also what will give you your time back.
So what’s an offer anyway?
An offer is the structure around your product or service that dramatically increases its value without changing the product or service itself.
Tweaking that structure will result in a 1-10X increase in what you can charge and a 1-10X increase in converting clients.
The best part? These structural changes are virtually free.
I’ve broken an irresistible offer into 9 structural components.
Improve a single part of the structure and you will convert more traffic, be able to charge more, see ads/organic start to improve, see conversions perk up and sales get easier.
Change all 9 components? Now you have an irresistible offer. You will dramatically increase how much people are willing to pay you, work less, and attract higher quality clients.
Irresistible Offer Component #1: Who exactly are you serving?
You might be working doing a little bit of everything for everyone…which means that it’s very difficult for the market to see that you are any different than anyone else.
Ok, so you are a copywriter? There are a millions of other copywriters looking to do work big and small.
The types of clients you are attracting are bottom-dollar Walmart shoppers. They just want the lowest price and a quick job.
As soon as you become a “copywriter for Facebook ads”, you have immediately added $$$ to the amount you can charge, simply because there are less copywriters for FB ads then copywriters in general.
And because there is a high value in your perceived expertise in a specific subject matter.
But prospects that I talk to often want to go to the next level – “yes Paul, I understand, and I have niched my service or product somewhat. But what else can I do?”
Focus on the following principles to increase your leverage:
1. Go toward the niche/subniche that is experiencing the most pain. For example – you could be an Infusionsoft expert. Cool – you aren’t just a CRM expert; you are skilled at Infusionsoft. But which types of Infusionsoft prospects are experiencing the most pain or have the most need? Or let’s say you are a health coach for business lady bosses. Do you want to help them lose their first 5 pounds or their last 5? Generally losing your last 5 is the hardest – thus more difficult and painful. Focus on this segment and you’ve just given yourself a raise.
2. Let’s also talk about purchasing power. Focus your niching efforts on those clients who can actually pay you long term. So you are a photographer who does branding shoots for businesses. Who will have more money? An artist looking to sell their art or a certified nutritionist?
3. Focus your niching efforts on clients that are easy to find. Let’s say you sell PPP advertising services to small businesses. Who will be easier to find? A real estate agent or a roofer? Real estate agents live on their phones and in communication. They are way easier to prospect.
4. Niching properly allows you to build standardized systems, making your workload easier. And it makes your work faster as you won’t be “task switching” as much.
5. Want your referrals to start pouring in? If you focus on a particular client to serve, you are at a huge advantage. Why? Your clients hang out, know, and communicate with people just like them. Word of mouth is much stronger if you helped a dentist with SEO when he mentions your services to another dentist. If he mentions your services to a law firm, the lawyers might wonder… “I know she does good work and is trustworthy, but will this work for my business?”
6. Every business runs into problems in their fulfillment at some point. It’s way easier to troubleshoot those problems when you are going after similar clients – as opposed to reinventing the wheel each time when a problem comes up because you have 5 different types of clients.
7. Getting really focused on who to serve will give you the perfect balance between following your passion and cash. It’s not all about money. In fact if it is – you won’t last. Sharpening your focus on who to serve gives you 2 advantages: #1 – More cash in the short term to then diversify and pursue your passion. #2 – More clarity immediately to find the balance between monetary goals and personal goals.
Sharpening up your Niche is key because you’ll make more money as an expert in the field, your systems will become more standardized – making your life less stressful – and you will attract better prospects. Best of all, you will have a pathway to pursue what you love.
Think about this: How much does it cost you to survey the people you’ve worked for and choose one type of avatar? One who’s easier to find and in significant pain? One who you know can pay more on average?
Virtually zero. What’s the payoff? A lot more than zero. For some of you, it will be a 10X multiple.
Your goal is to find that one ideal client who you love to serve and get really good at serving them.
Objection #1: “I don’t want to Niche because I enjoy serving a lot of different clients.” Excellent, you will get no objection from me! If you enjoy it, go do it. However, if your primary goal is to make money and you value that above serving many different types of clients: get good at one avatar first and then branch out.
Jeffy B himself? Just started with books.
Objections #2: “I’ll lose out on business, because I’m not appealing to more people.” Not true! Just because you are more focused as a business doesn’t mean that people outside your avatar won’t contact you or think that you can’t help them. It means that you are positioning yourself as an expert rather than a generalist, which increases your product’s or service’s value.
Irresistible Offer Component #2: Find what your ideal clients truly values. Trim low margin difficult work; add high margin work that you love.
Who did you do work for that was completely amazing and you loved doing work for them? Keep that person in mind as we proceed.
You don’t have to solve every single one of your clients’ problems with your service. In fact, you want to be specific on what outcome they can expect which likely won’t solve everything.
Think about it like this: I help (people) xyz with (specific result) in (xyz time period) without (bad thing they are terrified of).
So, identify a dream outcome you can help your client achieve, one that you are passionate about…not just one that you think can make you money.
Then, list out all of the real AND perceived problems your client is struggling with. Then make you service the solution to those problems.
But in this process, in wanting to do a great job for our clients, we often impose our idea of a great job on them…
…which leads us to create many components in our service that are very difficult to deliver and very low margin…. components that the client might not even value.
Here’s an example:
Let’s say you are a model living near El Paso, TX. Your product is an hourly rate for businesses and photographers to shoot you at White Sands National Park.
You spend many hours working on your body, outfits, poses and recent styles that you think are trendy.
A photographer reaches out from Tennessee wanting to hire your services for 2 hours to shoot to build their portfolio at White Sands National Park.
You are ecstatic! Someone is paying for your services! After all, it’s hard to make it in the modeling industry until you are really big and have a massive portfolio, right?
So, you explain all of the styles and themes you’ve developed and all the hard work you’ve put in.
Once you meet the photographer and go on the shoot – you discover what they really value:
1. That you were super responsive and not arrogant.
2. That you knew specific locations for cool spots – which would have taken hours otherwise to research.
3. That you let the photographer have some creative control on the shoot instead of forcing the shoot around your exact style.
4. That you used your connections to organize one other model on location to shoot as well, saving the photographer time and effort.
It turns out there was immense value in what you were already doing for free.
Now, that same modeling professional can build an offer around helping photographers shoot at White Sands explaining the above values and packaging everything together for 2-10X the amount they were charging for two hours of work. (Assuming they applied the other 9 aspects of irresistible offers, of course 😉)
Ask yourself the question: What might be a low-cost thing to you that might be of immense value to your prospect?
Your ideal offer is going to give your clients an excellent outcome. But – the steps in your offer to achieve that outcome should be built by trimming difficult, low margin services that you dislike doing and add simple high margin elements that your prospect values.
I was once working with a survey company for small businesses. They help startups test their idea against the marketplace by surveying hundreds of real people to get their opinion.
This founder would talk to each client and help them develop specific questions to survey the general public to see if their startup idea was viable.
He had two goals: To sell more product and to be less involved in the business.
He needed a way to increase the value so he could charge more– and start to trim the parts of the fulfillment that was sucking up all his time and energy.
His company had surveyed thousands of people, including some big companies like Axios and SpaceX. He had access to incredibly valuable data.
So, one component of improving his offer would be to compile the most incisive questions that top companies have asked prospects when testing a new startup idea – around concept and price etc – then give that away as part of his offer.
“Now the small startup can survey the market with the same types of questions that SPACEX is asking when they are testing their ideas.”
See? It would take that founder maybe a few hours to compile that data…but would result in a MASSIVE value increase to the product. Something customers really couldn’t get anywhere else.
It would also start cutting down the owner’s involvement as the questions would be premade. Plus, he would have a foundation to train a replacement or work toward complete automation.
Since he increased the value, he could also charge marginally more for just this one tweak. A higher price put him closer to trimming his involvement in the business.
In the end, find and cut down the difficult, low margin work that the client doesn’t even find that valuable. Start stacking up the high value and high margin components of your service.
To help you with this process – think about the following questions: what does the client truly value? Why does the client truly value? What’s the biggest problem/pain your ideal client has encountered? What frustrates your ideal client the most? What keeps your perfect client awake at night? What humiliates your perfect client or is embarrassing to them?
Irresistible Offer Component #3. Offer a single, valuable outcome. Do NOT compete on price, benefits, or features.
Let’s revisit the commodity problem. If you want to get paid more – you can’t be like everyone else. You can’t be compared to anyone else. You must be in a category of one.
Gasoline is a commodity – why? Because it’s all really the same and has a standard quality generally. You might hop over to the next street to save 15 cents per gallon. You and your business need to shift from being a commodity that is basically the same as everyone else to a high paid expert that is in a category of their own.
People accidentally commoditize themselves when they compete on price. Why should you hire me? I can cut your lawn for cheaper than that other girl.
It’s a terrible way to run your business because it’s always a race to the bottom.
Then some compete on value. This is where you are selling based on time or features/benefits “stuff” you are offering your clients.
If you are a fitness coach, you might argue that you will get recipes for healthy eating, group coaching, accountability partners, customized workout plan, and a new alarm ring tone that soothes you into your morning workout.
This is OK, but still leaves a lot of money on the table. Why? Because, in the end, the customer doesn’t care about your price. Not really.
They don’t care about all your features and bells and whistles. They care about you delivering a specific tangible outcome with certainty.
The experts that are creating their offers based around results are the ones getting paid. If you can compete in the marketplace based on results of solving a problem for the client, you will get paid disproportionally more than if you are competing on price or value.
Why is it so much better? Because when you compete on results, It’s difficult for me to compare you with the competition…because your offer is unique. You’ve differentiated yourself. You have no comparison. You aren’t just a copywriter; you are a copywriter that builds launch sequences that triple open rates.
Say you are a violin teacher or a piano teacher: Most compete on price. Let’s say $40 for a 1-hour lesson.
Some upgrade to compete on price and value….”Hey look I’m middle of the road for price, a little more expensive than some but cheaper than others….but I have all these values: You know me, I have experience, I live close by”, etc.
Very few compete on result. “At the end of our six-month training program, your child will be able to play in their first Christmas recital.”
See? It’s a category of one. There is very little competition, if any, and it doesn’t compete on price. It gives me a specific tangible result that I would like to see for my child, and consequently I’m willing to pay more for it.
When thinking through this process keep the following concepts in mind:
Clarity – The clearer something is the more it’s worth. If your offer isn’t clear about the specific outcome you are providing…prospects subconsciously mutter to themselves: “Not worth it, won’t work for me specifically, won’t be able to stick with it, external factors will get in my way, effort and sacrifice is too much, I won’t enjoy it, I will be bad at it, it’s too confusing.”
Certainty – the more certain you are you can achieve the advertised result = the more you can charge.
Repelling – We want our offer and the results we deliver to repel clients that aren’t our ideal client. For example, my offer is to help you increase your prices by building you an irresistible offer.
I assume that you have prices to increase and you have clients and you have something of a business. Why? Because if you are brand new – you don’t feel the same amount of pain of being an overworked underpaid expert. You may not have the funds to pay me. You also might think that it’s all about just running some “Facebook ads” to get a customer or two.
Again – it’s not that I won’t take on these types of clients, it’s just that they aren’t ideal. The way I’ve set up the offer specifically repels low quality clients and attracts ideal high paying clients.
Focus your messaging on a single dream outcome, and your dream clients, dream price and dream workflow will follow.
Irresistible Offer Component #4. Unique Mechanism, Naming and Messaging
One of the ways to strengthen your offer and demonstrate your value is by finding your unique mechanism and naming that mechanism.
Ask yourself the question – what is the conventional wisdom in my marketplace and why is it wrong?
We often become entrepreneurs because we’ve had a difficult problem that we’ve overcome…but we’ve done it in a specific contrarian way.
I needed to lose 100 pounds and I tried everything… finally a modified keto diet worked. Or I’ve tried every exercise in the book to get rock hard abs…and all of them failed. Dieting? That didn’t work either. It was all about controlling my metabolism.
What is the prevailing wisdom in your market that’s dead wrong? Or maybe misunderstood?
Take that new way that you solve your specific problem – that twist on “conventional wisdom” and give it a name.
The ideal is to contain a few components in the name. Ideally include the avatar and time duration and what you do.
For example, there is a website called fitin42.com and they have what’s called the Lean Mommy Makeover.
You can see what they did: they came up with a name “Lean Mommy Makeover”, highlighting what they are about. If they were to take it one notch up, then they could go with the 30-day lean mommy makeover.
I’m not sure about this company exactly, but often times the way these companies start is someone has that particular story, and then finds out a specific way that they accomplished the outcome (say a mommy losing weight), and then they champion that to the world.
They fight against conventional wisdom and often have these concepts in their about page and origin story to increase that unique IP in the market.
This way when customers look at you, they start to identify with your story and can’t really compare you to anyone else because…
In addition to the other irresistible offer components, you have a unique mechanism and unique name.
What not to do: If you don’t actually have something you do that is unique – that is totally fine! You will still be able to create an offer that customers will love to buy at a premium price.
Just don’t be disingenuous. The best unique mechanisms are different service formatting, containers, delivery systems, fulfillment or expectations than exists currently in the market.
If you have a good reason why what you do is different than conventional wisdom, give it a name and now you have unique IP that is more valuable.
Just don’t advertise a keto diet and then rename it to the Sanders diet. Explain why there are significant flaws in the keto diet and then demonstrate why the “Sanders Diet” fixes those fatal flaws.
Struggling with this? It can actually be quite difficult to see our own superpowers. Ask some of your customers what was unique about your service. Look at all your competitors and see what you do differently.
Look at your own life experience (this is the best) and ask what really was the difference maker.
We don’t have to come up with something BRAND NEW, just something significantly contrarian. It is more about the name, message, container, and current market expectations.
Remember curiosity is king. If you have something new to offer packaged up in a cool name – the market can’t help itself. It must take a peek.
Irresistible Offer Component #5: Bonuses – Add more value than your main offering.
I’m highly frustrated when I see companies offering bonuses – to be completely frank. They seem disingenuous, disconnected, fluffy and manipulative.
But first, what’s the point of offering a bonus with your product?
As in any transaction, the reason a prospect will buy from you is because they believe that what they are getting in the form of services is MORE valuable than what they are giving you in the form of $$$.
Now, before this sounds dystopian – both sides come away from this transaction as winners. There isn’t a loser here. The goal of bonuses and marketing in general is not to fleece the customer into ‘just paying more’, but to rather better understand what the customer values – and give them that thing.
Then, the more skilled we are at meeting the customer’s specific demands and demonstrating our value results in an exchange where both sides win.
The wrong way: Here is a bonus you don’t really need or value, but I am going to pretend you need and value it with a bunch of fancy language.
The right way: I’ve spent a lot of time and energy to understand what you really value and need – and am giving you a bonus of xyz with my product which has an extremely high value to you which is inexpensive for me to produce and deliver.
The goal is to give the prospect bonuses that exceed the value of your core product. If the bonuses exceed the value of your core offer, then the perceived value of your offer rises dramatically.
How to deploy bonuses for maximum effect:
1. Break your main offering up into pieces – create a core offering and then offer the remaining components of your offer as bonuses. This particularly works well if you’ve been arguing from features and are switching over to outcomes.
2. Solve the customer’s #1 or #2 fear with a specific bonus. If you are a portrait photographer, you might offer posing coaching as a highly valuable bonus.
3. Make sure that the bonus has a value tied to real life and calculate that for the prospect. If you are offering some of your extra time – how much do you charge per hour actually? Or offer a testimonial to demonstrate the value.
4. Find out what new problems are created with your product – and then offer the solution to those problems as bonuses. If you are selling training on how to write cold emails – offer a bonus of the exact script you can use once you actually get on the phone with a prospect.
5. Custom bonuses: Have a few bonuses on hand that you can deploy. Once you have some practice, you’ll know that your prospects generally will have a few different types of objections, fears or concerns. Deploy a customized bonus just for them which solves those concerns.
6. Give the bonuses a name – and focus on how you can make the prospect’s life easier or make the solution faster or with lower effort from the prospect.
7. Use your experience to create high-value low effort bonuses. For example: “if you buy this entrée, we’ll email you the recipe of exactly how the chef made it. We sell this on our website for $10. Also we’ll include a 30 minute video tutorial on how to make it from the comfort of your own home taught by our chef himself. We sell this on our website for $29.” See what you did? Now the bonuses are more valuable than the entrée itself and they are free – all from a onetime effort that you can use over and over again.
8. Use your relationships with other businesses. Think about business that interrelate to your product offering. These businesses know that it’s difficult to acquire a customer. So, they are often willing to discount their services if you make an introduction to your client, give their service away for free or even pay you for giving their service away for free.
9. Take a chiropractor – he would be able to offer several bonuses of a free massage and discounted orthotics from a variety of nearby companies along with the core offering.
10. Take a website designer – He would be able to partner with a company that runs traffic and offers their $197 course as a free bonus. The company who runs traffic know that their business model is predicated on selling courses and then upselling the course purchaser on a DFY service. They love the introduction, and you get to give away free value to your customers.
Irresistible Offer Component #6: Guarantees
The moment comes and you finally share the price with your prospect – and there is an awkward pause.
The prospect’s mind starts racing – it’s so expensive…what if it won’t work for me….it sounds like a lot of effort…I’m not even sure I’ll have time…do I really want this…why am I here again…
To get your prospect to buy from you requires risk! And we all hate risk. In fact, we are biologically wired to avoid it at all costs.
This is where a well-crafted guarantee will help reduce the risk and ease the prospect’s mind. Here are a number of guarantees. Think about which one might work for your business.
1. No questions asked guarantees.
1.1 Literally unconditional. You ask; we give you your money back. This is good for low ticket info products.
2. Guarantees with strings
2.1 If you complete xyz and still don’t get a result, let us know and we’ll give you your money back.
3.1 All sales are final. Our product is unbelievable. We don’t offer guarantees because we are the best. Or, what we have is so proprietary that once you have seen it, you have the value, so we can’t offer a guarantee.
4. Conditional Guarantees
4.1 They get all their money back if they follow steps xyz.
4.2 They get 2x their money back if they do xyz.
4.3 Credit based guarantee.
4.5 Personal work with you 1:1 to make it up to you if you occupy a high position in your company.
4.6 There are many different types of guarantee “mixing and matching” which you can deploy here.
5. Performance and value guarantees
5.1 We get x value once you sell x amount of product/service.
Now, there are a few very important elements to keep in mind with guarantees. I see businesses throw in guarantees because they think it “works”.
Guarantees become fluffy and “tacked on” if they don’t have the following elements.
1. They should address a key fear or concern the prospect has. What is your customer’s #1 hesitation? What risk do they fear the most? This is the one you need to attack full on with your guarantee.
2. There should be a solid reason and rationale behind your guarantee which is woven into your product or service.
3. You guarantee should not sound desperate or be desperate. It should sound clinical and scientific. For example, we offer a full guaranteed money back because we’ve only ever had 2 people walk through our program complete the steps and ask for their money back.
Irresistible Offer Component #7: Urgency & Scarcity
What does the general public think when they hear the word “marketing”? Perhaps…artificial urgency and scarcity “tactics” come to mind.
Only 3 left in stock! 5 Days left until the doors close! Act now or this is gone forever!
Many times, its disingenuous, manipulating, or downright insulting.
Let’s back up and define urgency and scarcity – your business needs both to increase sales, but you need to do it ethically and different than everyone else, which will increase the value even more because you will stand out.
Urgency is defined in terms of time – Take action by X date.
Scarcity has to do with how limited the supply of an item actually is.
There is good reason why marketers deploy urgency and scarcity. Human beings hate taking action. They would prefer to put off decisions and procrastinate even if taking action would be helpful to them or their business.
But there’s more. The #1 reason why anything is valuable is based on scarcity. So if a marketer can make it seem like there is less of something…then by default it becomes more valuable.
The same goes with urgency – most people need some urgent reason to take action. The more urgent something seems, the more valuable it is.
But how do you do it without giving away your soul? How do you do it authentically? How do you have continual urgency and scarcity without being fake?
Many businesses create artificial urgency and scarcity.
Your company should create structural urgency and scarcity.
Consider 2 questions:
1. What is your normal business cadence for fulfillment? If you are a health coach, you might have a 30 day program that starts at the beginning of the month. If you have no cadence, you should start one, you’ll actually sell more than if you let clients in whenever they want. Plus, you will save on stress and gain in organization. This way you can also deploy real urgency. “We have 1 week till this program starts, you in or out? Once I start teaching on the 1st, I’m not going to go back and re-teach that day, so you need to get in before the end of the month.”
2. How many clients can you actually handle? If I gave you 100 clients next week…could your business handle that? So find out whatever number that is – and then just let the market know the legitimate scarcity that exists in your business. If you are just starting out and can only handle 3 clients per month at 3k apiece…that creates excellent scarcity. One person has already signed up and it’s the 8th of the month…you can powerfully and legitimately say that you can only take 2 more people or the client must wait till next month.
Ironically, building an irresistible offer and charging premium prices helps with this process of creating structural scarcity.
Why? Because you don’t have to take on as many people to be even more profitable than you were before. So, you aren’t desperately trying to sell clients and can create natural cadences so your product appears more valuable.
It’s a virtuous cycle.
Irresistible Offer Component #8: Social Proof
Now, you might be thinking – Paul I don’t really have any social proof. Or, I do have social proof but I can’t demonstrate a massive result….yet.
Now, social proof does help. For example, if anyone asks me for proof, I can show them a video of one business owner that I’ve created 400k in 6 weeks from one offer. That’s a big result!
But you don’t need social proof.
Here are some ways to demonstrate social proof if you don’t have that big case study or testimonial.
1. Show proof that the concept works. If you are a dietician and live and die by the Atkins diet, but you don’t have examples of a client losing 50 pounds… Show case studies and testimonials of the diet working generally.
2. Find friends and family that you have done great similar work for – and ask if they would jot down a couple lines and you can use that as part of your testimonials.
3. What if you are just starting and you haven’t done any work in that particular field? You can still demonstrate that you are responsive, timely and work hard to get results. Those values alone are significant.
4. You can also create social proof by writing or speaking. One way is to write an article about your subject and pay to have it published in Yahoo news. Or, you can create an offer to appear on someone’s podcast and then use that as social proof. “My journey starting a business from scratch.”
Irresistible Offer Component #9: Pricing and Pricing Structures
Pricing is a fascinating concept – because higher prices themselves can create value. Simply because of the fact that that you are more expensive.
How many people can tell the difference between a $12 dollar bottle of wine, a $30 bottle of wine and a $50 bottle of wine?
And yet, we feel better about the quality of the product when purchasing a $50 bottle.
One of my favorite examples is of cheesesteaks in Philadelphia where I live. What do you think the profit margin is on a cheese steak?
One article from Philly Magazine was moaning about how difficult it was for restaurants to get by. “They have gone from 15-20% margins down to 4-7% margins.” That means if you spend $10, the restaurant is only pocketing 40 to 70 cents in profit.
This is the horrible vicious cycle of competing on price. Everyone who competes on price eventually gets squeezed down to where they barely survive and turn a profit.
For most businesses pricing looks something like this: What are all my competitors doing? I’ll try to give the customer a bit more and then make my prices middle of the road to stay competitive.
Then a couple service providers start dropping their prices, so you have to drop your prices, then they drop them a bit more and you drop yours again and so on…
It’s an eventual road to failure. Unless you can be the market leader and charge less than everyone else or you have some new process like Walmart with bulk purchases and distribution to charge the lowest prices – then don’t try it.
It’s a slow road that leads to burnout. Instead, charge premium prices and increase the value. You’ll even get a small lift by the value that is created that higher prices command intrinsically.
Barclay Prime in Philadelphia decided to try this model on one menu item. A new twist on the Philly Cheesesteak.
Made with the finest ingredients, Wagyu beef, sesame roll along with foie gras mousse and truffle butter and Italian Caciotta al Tartufo cheese and a half bottle of champaign.
The cost? A whopping $120. The world’s most expensive.
You could get 12 cheesesteaks at Pats for the same price.
What do they call a cheese steak from Pat’s or Geno’s?
But a $120 cheesesteak from Barclay Prime?
Thrillist calls it a work of art.
While the profit margins were undisclosed – I imagine them to be many times better than the restaurant average of 4-7%.
So, instead of competing on the lowest price: charge premium prices and increase the perceived and real value of the product.
Lower prices generate a negative price war, which brings in unloyal customers who are less invested in your services (so will have worse outcomes), have a less perceive value(because the product is cheaper), and you will have less profit to pour back into your services to hire the best people to get results.
On the contrary, higher prices produce loyal customers who are more invested in your services…which means they will get better results because their full attention will be focused on you, have more perceived value(just because your prices are higher) and you will have more profit to pour back into your business making your service better and enabling you to hire the best people.
Does this mean you can just increase your prices? Unfortunately not. You need to have the other ten component of an irresistible offer. BUT – price by itself is a signal of value and can in some limited way create value.
So where should my prices be? Toward the higher end of the premium range. Then you make sure your bonuses are in place & your risk reversals are in place.
Here are some different pricing structures to walk through. This first one is if after all this work – you are still a bit unsure about charging more. If you’re thinking….I’m not sure if it’s really worth it…then use this model.
1. Let’s say you are charging 1k for your service offering currently. You go through all irresistible offer components and now your offer is compelling. Then you take your price and change it from 1k to 3k and say you can pay 1500 now and 1500 when the project is completed, or you can pay 2k today. (Insert window of time that fits with your structural urgency.)
1.1 Always, always, always use this as an opportunity to create true urgency and scarcity. If you are raising the prices in the business, announce it for a specific date and you will likely drive some cash flow.
2. If you are afraid of losing customers and you need some cash flow to survive…then take the above approach, but also create an essentials program. Take just the key elements of your service and follow up with your prospect afterward, explaining that you have a “group coaching product” at the end of the month or an essentials product that you only deploy during xyz time and that they can jump into for a discounted price.
Become A Client
Learn more about how to grow your Financial Education Company and our 5-figure guarantee.
Become A Client
Learn more about how to grow your Financial Education Company and our 5-figure guarantee.