Why Follow When You Can Lead?
Simply because something appears logical, doesn’t mean it’s right for your business. Don’t follow the status quo. Choose to take initiative, even if it’s contrarian. Set up a business that suits you. And, remember to highlight your strengths rather than diminish them.
Maybe you’ve been following conversations about value based pricing. There’s more to it than simply setting a price.
Value based pricing includes these three core factors:
1. Define. Identify your ideal client.
2. Determine. Clarify their problem.
3. Develop. Design solution-focused packages.
As you can see, your packages aren’t about the ribbons and bows. Their contents solve your clients primary concerns. Design your packages so your clients know exactly what to expect.
In fact, well thought-out packages strategically separate you from similar services. They showcase your core values and clarify your approach. Once you follow this strategy, enrolling new clients becomes easier. It’s easier for them to recognize your value. Price, at that point, becomes secondary.
Find Your Core Values
During an informal staff meeting with his employees in 1997, Steve Jobs talked about marketing in a novel, fascinating way. He claimed that even the package design needs to elevate the customer experience. According to Jobs, your values influence your marketing. The world is a complicated and noisy place. Find ways to stand out and get noticed.
Apple’s core value embraces innovation. “People with passion can change the world for the better”.
Its ‘think different’ marketing campaign recognized the people who changed the world and thought differently. Job’s noted that, “Some of them are living, some of them aren’t. But the ones that aren’t, as you’ll see, you know that if they ever used a computer, it would have been a Mac”.
State Benefits, Not Features
Don’t simply slap a bunch of your services together, then call it a package. Give careful consideration to how you design your packages.Don’t simply slap a bunch of your services together, then call it a package. Read the full post. #getpaidwhatyoureworth Click To Tweet
By the way, your opinion isn’t the most important consideration. That’s not what’s going to enroll a new client into your package. The initial conversation revolves around them. They need to first decide whether, or not, to hire you.
As a result, most entrepreneurs naturally emphasize features. They talk about the services they offer.
Go ahead and put yourself in the clients seat. Consider what’s necessary from their point of view. The features, those services you offer, talk about your product and your business. But those aren’t the most important consideration.
The Main Act
Features are like the roadies in a concert. They set the stage, however, no one purchases a ticket to watch the roadies set up.
The main act is the benefits and outcomes. That’s what your clients need to hear first. If they believe you can solve their biggest challenge, then they’ll sign on with you. Therefore, benefits talk about your client’s key problems and the value they receive.
Design packages that emphasize the outcome rather than the features.
Systems Liberate You
Review all the services you offer. Then break them down into different stages with concrete outcomes.
This starts to define your systems. As your business expands you can replicate the processes. Teaching your team the same processes frees you up from the day to day work. It’s a highly strategic way to scale your business.
The Center Stage Effect
Ever heard of the center stage effect? It claims that people will choose the middle option when given three choices. That’s why so many businesses offer three types of packages.Ever heard of the center stage effect? It claims that people will choose the middle option when given three choices. Read the full post. #getpaidwhatyoureworth Click To Tweet
More is not better. Too many options will cause confusion. With two choices, people will choose the lower option. A single choice forces a yes or no decision.
Design Your Packages
Your packages ought to be progressive. Think about the American Express credit card. They offer three options – green, gold and platinum.
- Green. The green card offers the basic services and targets price sensitive clients. The sign-up bonus and bonus categories aren’t available with this basic, no-frills card. You receive one point per dollar spent. It’s annual fee is $95.
- Gold. The gold card has all the capabilities of the green card, plus some additional services. You earn 2 points per dollar when shopping at supermarkets and 1 point per dollar for all other purchases. It’s annual fee is $160.
- Platinum. The platinum card provides everything the gold card does and offers some unique services in addition that are targeted toward its premium clients. Annual fee is $450 and sign-up bonus is 40,000 points with 1 point earned per dollar spent on all purchases. There are additional perks too: a $200 credit toward airline fees and elite status with Hilton and Starwood properties.
Value, Not Price
As the center stage effect shows, most customers buy the gold card. The center stage effect works best when your communication is clear and specific. Well-designed packages can sell themselves. Social proof adds credibility and speeds up the buying decision.
Remember to weave your core values into your packages. Once you create packages, you can sell your services based on value rather than price.
Ready to design your packages, but not sure where to start? Book a complimentary consultation with Loren and learn how to position yourself in the market.