No More ROI: The Real Way to Sell High-Priced Packages For Maximum Profits
Want to know what keeps a lot of entrepreneurs and service providers from charging what they’re really worth? They don’t price their products and services correctly, and then they think “I am not a sales person.” Combine that with a healthy dose of “It’s rude to discuss money,” and you can see why it’s just easier to keep your rates low and you’re struggling to run a profitable business. They don’t charge enough and it’s destroying their business.
Let me tell you a personal story. I’m a debt expert. No! Don’t run away! Honestly, I’m a nice person, I can help business owners and entrepreneurs get back the money they’re owed. You see it there, right there in the way that I tell my story. People hear what I do, and think “bailiff” or “debt collector” and instead of seeing me, Ron, a legal strategist with a passion for profit, they visualise something scary.
It’s time to reframe how you sell your services. Not only will you see things in a clearer light, but selling suddenly won’t feel so…dirty.
Let’s start with how traditional pricing discussions take place
You talk to a potential client, and you explain what you can offer, how your product or service works, what he or she can expect (how many calls/emails, phases of work, length of contract), etc. And then you say, “My rate is £XXX.”
Your client either says yes, no or the kiss of death … maybe.
Let’s turn that around, and rather than focus on what he or she will get from YOU, take a look at what she will achieve when she books you.
For a business coach, this is easy. Talk money.
- How much more profit will your client make when she hires you?
- If your coaching fee is £1,000 per month, but you can show her how to increase her sales by £3,000 per month, then your price is inconsequential.
- She’ll earn it back three times over, not only while you’re actively coaching her, but for the rest of her business life.
Who wouldn’t pull their credit card out and pay you your deposit right there and then?
What you’re doing here is not talking about the cost of your coaching, but rather the cost of not hiring you. Because if she doesn’t work with you, she’s losing £3,000 per month. That’s £36,000 by the end of the year. That’s over £100k in three years. Ten years? She’s lost a million quid, just by not hiring you.
What about pricing for other kinds of entrepreneurs?
The same applies, you just have to discover the ways to show your clients the cost of their inaction. If you’re a life coach, inaction (to your potential client) might mean years of feeling unhappy and unfulfilled. Imagine what it’s worth to your client to lift that depressing burden forever?
The same goes for health and wellness entrepreneurs and products. Can you add 10 years to the life of an unhealthy, overweight man? That’s priceless. That’s 10 years to spend with their children, their grandchildren and it’s more energy to treat his wife like the queen that she is.
What about dating entrepreneurs? Did you see that episode of Frasier where he pays a dating coach 10k to find him a date? Yes, a well respected psychiatrist, radio host and minor celebrity pays for a dating coach as he doesn’t want to be alone. For someone who’s been unlucky in love, in and out of one bad relationship after another, the promise of a man (or woman) who will love and cherish them is a price worth paying when they understand what your product will do for them.
You just have to help the prospect visulise what they’re buying, and it’s always the intangibles that they purchase.
What will life/business/love look like without your services and products?
What can it look like with you?
Once your prospect can see the difference, pricing becomes irrelevant, you’ll stop undervaluing what you do, and your business has become a whole lot more profitable.
It’s simple, I help business owners and smart entrepreneurs maximise the profitability of their business. I help them set up systems to protect them from the sharks, and make it easy for them to do business safely. If you’d like me to help you with your pricing and profitability, give me a call. My number is at the top of the page.