Foolproof Way to Create your Premium Offer
If you aren’t yet convinced that you have to have a premium offer, do a quick search for your number one competitor and see how much money you could pay them if you wanted to?
Seriously- I’ll wait
When you come back and you are now fully convinced you need a premium offer, let’s actually make it.
First, you must understand that buyers need options. At least 2, no more than 3.
Look at a car lot, you can buy an entry level car, a mid tier car, and a premium car.
Next, you need to understand buyer psychology. When faced with a decision, MOST people will make a “conservative” decision by foregoing the highest price option because they are being good stewards of their money. But, they will also avoid the lowest tier model because they have discretionary buying habits (nobody wants stock rims and manual seat adjustments).
In order to create your offer structure you must value stack every single thing that you would be willing to do for your client.
Now, separate them into columns, putting the highest number of these items in the middle column- this become your silver tier offering
The first column is your bronze offering, that’s your “entry” level option.
The third column is your gold tier option, for the truly discerning customer.
Finally, set your pricing for it. This should be the pricing that would be an absolute no brainer for you. If 10 people said yes to this, you would keep building your team and start scaling your business.
Now, watch and wait. Because you have a pricing anchor as a premium seller you will be more pay to close your middle offers and you will find that your overall revenue continues to increase.
Happy scaling!
Keep Winning 👊
Customers are Avoiding your Discount Pricing
No one is thanking you for having discounts. Have you ever noticed that when you purchase something on super discount that you don’t place the same value on it as you do for something that was full price, or even that you had to wait for?
How in the world are shoe brands that are 20 years old still selling at premium prices?
Even if you gave your absolute best stuff away for free, do you suspect your customers would place the same value on it as if you charged an absolute premium?
Sure, you would have less clients, and that’s a good thing. In exchange for all the tire kickers, Looky Lou’s and lurkers you would have a select few that placed immense value on what you are providing.We begin to make this assumption that people wouldn’t pay more for our services and certainly wouldn’t ever pay a premium .
Then we start telling ourselves all of these stories about why that has to be true so we can continue to listen to our own scarcity stories. The truth of it is simply that you likely can’t imagine that YOU would pay that much money for your service- which may or may not be true.
You don’t have to look much further than a gas pump to see that people will clearly pay a premium. I assure you if the gas station didn’t continue to sell premium fuel it wouldn’t continue to offer it.
But, how about something more practical? Backstage tickets to a concert? Valet parking? First class airline travel?
Just because you might not consume doesn’t mean that no one else wants it.
There are two prime reasons why you MUST have a premium offering:
- Anchoring. By providing a premium option, a frugal shopper will make a “smart” decision to purchase a mid tier option.
- 5% Rule. There is a percentage of your customer base that needs a higher touch, and you are doing them a disservice by not making the offer available to them.
If you took your current offer, and made it truly premium, what type of “white glove service” would you provide for them?
Disney World Taught Me a Business Lesson
I love Disney World- not like some people, but certainly more than others. But, I hate waiting in line.
As I was preparing for our family trip this year I was doing all kinds of research about the latest and greatest rules, passes and ways to skip the lines.
One of my colleagues was introducing me to how the Genie+ program worked and how you could pay for individual ride tickets. There was this little bit of “non-expectation” in his voice as he described what would amount to an extra hundred bucks per day.
Have you ever noticed the level of shame some people project when they ask you to spend money- not even with them, but just to spend money?
Then he dropped this little golden gem on me.
“Genie+ is the best way to get around Disney, unless of course you were willing to spend the big bucks on the VIP.”
Wait…what?!?!?! VIP?
As I began to do a little research I found out that someone would literally walk you around all day, swiping their magic skip the line cards for you and taking you straight onto the ride or event of your choosing.
As I began walking through Disney I noticed family after family with a uniformed Disney cast member walking with them, escorting them to events. For those that value time more than money, even Disney has a top tier offer.
Is there any chance that any of your current customers might want a little bit higher tier offer from you?
