The Silver Bullet – getting them to pay more…

Consider – What are you actually selling?

It’s not rocket science – Most business owners who say they are not making enough money have one of two problems… 

  1. they don’t have enough customers or
  2. they don’t have enough cash.

And for those problems there are only two solutions…

  1. Get more customers
  2. Increase the value of each customer.

As a business owner you decide which is best of your business. The problem is when you are a service business, like a caterer, a hairdresser or a florist you can only serve so many customers. I have had a lifetime like that (so it seems) – hiring out tents for weddings – we only have so many for each weekend, which means our income is capped at whatever the cost of having them all hired out.

What about you? What are your limitations? Well if you are like me and can only serve a certain number of customers, we have to look at option two, increasing the value of each one.

And that takes some thought. So let’s get our thinking caps on…

Selling at a higher price means is all about VALUE rather than price. Without added value you are selling something that is commoditised. And you need to be selling something that is differentiated. If when people talk to you about your service they speak of comparing other quotes they are deciding on the price, lining the products and other costs up. And we all know that if you want to win on price the only way is being the cheapest!

So think again… how can you make your product or device, so so attractive in terms of its value that your prospects don’t bother waiting for other quotes, don’t want to compare you because it’s clear what you are offering is DIFFERENTIATED!

And what that means is that your marketing, your website, all of your conversations need to show that you are different… better.

You need to make them an offer that literally doesn’t compare with your competitors – that makes you stand out. An offer that combines an attractive promotion, an unmatchable value proposition and an unbeatable guarantee. Then and only then can you command a PREMIUM PRICE.

What you have to do is educate your prospect so that you change the whole way that they assess what they are buying.

So in today’s blog I would like to give you some guidance on how to work out your new Value Proposition.

What do they want?

Firstly you need to work out exactly what it is your customers want, their ‘Dream Outcome’. (And that almost certainly isn’t your product exactly as it stands). 

So for example if you are a beauty therapist you are not selling a facial you are selling the dream of looking younger, a travel agent is not selling a flight but an escape from mundane life, the perfume companies are selling sex appeal not a nice smell… you get the idea.

You need to decide what your customers are actually looking for when they come to you. And then create the marketing to provide it.

What are their objections?

Once you know what they want you also need to work out their worries… The way to do this is to write down a list of problems that your customers have; whether they are worries, issues, time constraints or whatever – write them all done – don’t try to solve them just list them. You could even ask some of your customers, what worries did they have when they first found you.

People will pay for certainty so you need to assure them that what you are offering will give them that dream. By increasing their belief that you can give them what they really want makes your offer more valuable and they will pay more for it. 

Work out the solutions.

Here’s where you overcome their issues for them before they have had time to fester. You need to tell them the problems they might have and solve them… they will think you are a genius. By presenting the solutions on your website, in your copy and in your conversations you will break down the barriers, show your experience and gain their trust,  So you have shown them what they want (the Dream Outcome), you have told them some of the issues they need to consider and then you have shown them how you can take away all those issues for them. Next you need to …

Enhance your offer.

Making your offer absolutely irresistible to the prospect is easier than you may think.  There are several ways you can do this:

    1. Use scarcity – products that will sell out, services that will get fully booked up. Think about the hype for kids toys at Christmas, or sales of Festival tickets when they are announced (I would have said Robbie William’s tickets but I don’t think the problem is there so much now! 😂)
    2. Urgency – Use deadlines. Deadlines drive decisions. But don’t then say ‘ok well you’re late but you can have it…’ Make the deadlines real. Tell them you are putting up your prices on such and such date – then do it!
    3. Bonuses – Have these as standard, but don’t offer them straight away. If they buy – brilliant you can wow them with a bonus and they will love you, if they don’t you can use them as an incentive. Win,win.
    4. Of course you can use more than one at a time – your bonus could be scarce… “only the first x number will get y bonus..”

Offer them a Guarantee.

By this point you have probably got them pretty well bought into your product or service, but sometimes, at the price you wish to command you need one more thing to get them over the line and the best way to do that is by offering them a guarantee. 

Now obviously the best guarantee is the ‘money back’ guarantee – these ‘unconditional guarantees’ increase consumer confidence and hence an uplift in sales, however this type don’t work for every business (particularly as there are always customers willing to abuse them). 

However there are three other types of guarantee for you to consider:

    1. Conditional guarantee (includes T&Cs, means you can get more creative)
    2. Anti-guarantee (all sales are final and here’s why!)
    3. Implied Guarantees (Performance based offers – if it doesn’t work you don’t pay)

Whichever you choose it will give your customers certainty and confidence to buy your product or service because you increase your credibility.

So, in conclusion what you need to do is sit down and think about your customer… 

  • What do they really want
  • What do they worry about
  • How can you solve their issues and concerns
  • What can you offer them that will increase their perceived value of your product/service
  • What bonus can you give them
  • What guarantee can you offer

And then… you will be able to command higher prices and even if you have a limited number of appointments, products or service opportunities, you can increase your value of each paying customer. Job done. 😀

Written by : Jacquie Hale

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As a coach I use the same kind of method, in that I will support you as you implement a range of tried and tested marketing pillars which will definitely increase your sales leads and enquiries, ultimately gaining new customers and increased profits for you and your business.

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