Make TWO Offers

Here is the situation. A potential client calls up to inquire about your services. (As a side note, I hope your clients call or email to ask about your services. If your website lists all of your prices then you fall into the category of competing with other business owners based on price…a VERY BAD idea. You never want to compete on price because then it becomes next to impossible to become a Six Figure Dog Business Owner. One thing I teach my coaching clients is how to NEVER compete on price.)

After hearing about the services, guarantees, offerings, etc. that you have the client then asks you how much you charge. What do you do?

Well hopefully, by this point, you have built up so much value in what you offer that your potential client isn’t too keyed in on the price. Remember, people buy based on perceived value and how much they believe a product or service will FIX THEIR PROBLEM.

In our scenario you have done an amazing job at building value for your client. How do you then quote the price? I’ll tell you what I now do that has put THOUSANDS of extra dollars into my pocket in the last several months.

Quote two programs to your potential client; a higher cost program and a lower cost program. Of course you need to make sure that both programs offer what they need to fix their problem but the higher cost program offers more of your services/products/problem solvers/etc.

Then quote it like this; offer the higher priced program first and list all that it includes for a price of X. Then tell them that if they don’t need such and such, and don’t want this and that, then there is another program that will also fit their needs and it costs Y.

You will find that you have three categories of people when you quote this way:

1- People who buy the best program no matter what they are doing. Some people are ‘buyers’. Heck, I’m one of them. If you offer me a program that I believe is going to help me earn more money with my business, lose weight better, or make my lawn greener, I’m going to invest in the top program every time. For those people you offer them this program and it gives them a chance to get more of what you offer. What you offer is excellent, right? It stands to reason that they should have more of it if that is their buying preference.

2- People who would like the best but can’t afford it. For these people there is a little psychological trigger that occurs when you offer the higher priced program first. They initially get sticker shock but then become almost relieved that there is a lower priced program that you offer second. The lower priced program may still be more than they were hoping to pay in the first place. But because they were able to psychologically come down in price that immediately makes them more willing to invest in your services. They feel relieved because they can pay less AND have a solution to their problems.

3- People who can’t afford your lower priced service or people who are always non-buyers. Some people are perpetual window shoppers. They will always look for the best deal, lowest price, cheapest service. That is just fine, I don’t have anything against this group of people, but I don’t want them as my customers. Clients that will nickel and dime you will end up being more work than those who pay full price on a top-end program. It’s better to weed them out and spend your time with people who recognize you as someone who can fix their problem and is willing to invest in you to do so. Bargain shopping is great for picking up a pair of shoes or a television at discount, but when someone is hiring you for your services they need to know that you are the best and that they are paying for the best.

Since starting this with my own business I find that about 50% of my clients take me up on the higher priced program. For most of my programs that means an extra several hundred dollars per client and thousands more earned over a few short months.

Can you do this in your business? I’ll bet you can.