Selling More Expensive Things Will Change Your Business
Summary
The only thing worse than making a $1,000 offer to someone with a $100 budget is making a $100 offer to someone with a $1,000 budget. In the first case, you lose $100; in the second, you miss out on $900 you could have made.
I learned from a friend that it's smart to add something much more expensive to your menu of items or services. This item should be 10 or 100 times more expensive. If someone buys it, you should be thrilled.
Adding a high-priced item helps you sell more of your main offer because the big price acts as an anchor. This means your regular offer looks cheaper in comparison.
It also allows you to increase the price of your main offer because, compared to the high-priced item, it still seems affordable.
A friend with a weight loss business tried this. He added an option that was six times more expensive than his main offer. Surprisingly, people started buying the high-priced version more than his core offer.
Video
How To Take Action
Action Plan for Implementing High-Value Strategies
Add a High-Priced Item to Your Menu:
- I suggest adding an item to your list of products or services that is 10 to 100 times more expensive than your main offering. This could be a deluxe package, an exclusive service, or a premium version of what you already offer. The key is making sure you're thrilled if someone buys it.
Use Price Anchoring:
- By placing the high-priced item next to your main offer, your main offer will seem more affordable. Think like this: if your main offer is $100, and your high-priced item is $1,000, your $100 offer will look like a bargain in comparison.
Increase Your Main Offer’s Price:
- Once you have your high-priced item set up, it gives you room to slightly increase the price of your main offer. People will see your main offer as moderately priced, compared to the high-priced item.
Test and Observe:
- Try this approach for a period and observe any changes in customer behavior. This strategy was tested in the weight loss business where the high-priced version outsold the core offer. This could happen in your business too!
Low-Cost, High-Value Adjustments:
- These strategies don’t require a lot of money or time but can result in significant value. You're essentially restructuring your pricing strategy without major changes to the products or services you offer.
By implementing these suggestions, small businesses and entrepreneurs can maximize revenue and strategically position their offerings to cater to different customer budgets.
Full Transcript
the only thing worse than making a $1,000 offer to somebody with a $100 budget is making a $100 offer to someone with $1,000 budget because in the first scenario you lose 100 bucks in the second scenario you lose $900 of the money that you should have made but didn't I learned about this from a friend of mine he said listen man you can just put something on your menu of items or services that you sell that's 10 or 100 times more expensive just make it something that if someone actually bought it you'd be stoked that they did you'll sell more people on your C offer because they have this big price anchor second it allows you to nudge up your main offer's price because related to the big one it looks like almost nothing I was talking to a different friend of mine and I said hey you know you should consider just adding one of these things in and he had a weight loss business and so he added uh a six times higher price version of his offer and then the craziest thing happened people started buying that more than his core offer
