Why you want to have multiple price options.
Is what we're going to talk about today.
And what I've discovered over time is that there really are sort of two core buyers.
One, there are the price buyer.
And what they're looking for typically is someone just to do,
to check the box, to do the thing for the best price they can get.
It's frankly, a matter of cost.
So if we can get one.
Commoditized widget or service.
They'll take that because it's good enough for their needs or
if they can find someone cheaper, they'll probably go for that.
Now the, the challenges that a lot of times, people will come
to you with say a price need.
They'll say, Hey, I want this to cost X amount of dollars.
And I want this to do X type of thing.
And, or, or some kind of range.
Right.
And so your job of course, is to not necessarily take
what they say at face value.
It's not always the case that that is there.
Strict budget budget is really just a values decision, an allocation
of resources, more than anything.
So your job is to unpack well, what are your goals?
What are the value?
What is the value of achieving those goals?
And then how do I package up some options?
That will get you to that outcome.
And this is where having a few options can come, can be really valuable.
So if you're doing say customer polls, let's say you're doing a web design
project or a web development project.
And so the client comes to you.
They say, Hey, we, you know, we need you to build out this.
Area or part of our, or a complete website.
Uh, we have a budget of, you know, I dunno, 10 grand.
Uh, and, uh, we, you know, we'd like it to look something like these websites.
Great.
And we want these number of pages.
So they're, they're kind of coming kind of pre diagnosed with a scope
and they have an idea of what they think the project entails.
Your job then is to unpack and say, well, what, what, what business objective
is doing this redesign or this website or this section going to have for you?
So what is the, what is the reason you're doing and why not just.
Do it on Squarespace herself.
Why not just not do it?
Why not just tweak what you have already?
What does that stay here?
What happens if you don't do anything?
What happens if you do it another way?
And you can look at those options and really what you're trying to
get at is, okay, so you need more clients or you need more leads or.
Your website doesn't reflect the quality of the services
or products that you provide.
C wants something that is a higher quality.
Of.
Presence a higher, better quality design and overall more professional
look and feel so that you can be more credible in your sales conversations.
So that you can charge higher rates so that you can attract
more leads and opportunities.
Great.
So now we're onto something.
So now we're seeing how design.
Is going to impact perception, which will impact sales and
conversions and other things.
So you can kind of sell on that basis.
So, what you do typically is you want, you, you either do this on a discovery
process, or you do this informally on a sales call and really just trying to get
an understanding of where are they today and where do they want to be tomorrow?
And what is the gap in value or what is the gap in the situation?
So what does that look like?
And you really want to stress that gap and say, so if nothing happens is,
and this is the status quo situation.
Why not hire someone cheap.
Why work with someone like me?
Why work with me specifically?
And what is the outcome sort of look like?
And what is the business impact?
Was the value of that?
What would that mean?
In terms of new revenue or, uh, increased sales or more something, right?
What is the tangible business impact?
And.
Once, you know what game you're playing and really you have to maybe probe
and ask a bunch of questions and why questions and, and that sort of thing.
But once you understand what, what the goal is, and then saying, okay,
so reasonably speaking, if we can increase your leads by 10%, it would
have this sort of impact based on how many leads they're getting currently,
which I've asked you already.
Um, Well, this is roughly what the business impact might be.
You'd grow by down 20, 30, 40, 50,000 a month, or some other number.
Got it.
And let's say you were to increase your, let's say you were to
invest in a premium web design.
And so therefore you look more premium and you can charge higher rates.
Great.
So we can imagine that would add 15 or 20% to your, to your business.
Let's say over the course of a couple of years, and then you're going to
have this website for five years.
So reasonably speaking to do this right.
To if we did this right, or this could have an impact over five years of
half a million, a million, $2 million.
Great.
Based on these kinds of metrics and, you know, hopefully they're
tracking some of these things.
If not, you can say, Hey, you know, why don't you look at your conversion rate?
And we can at least benchmark that against what the future looks
like over time, because remember.
These things take iteration and time to, to really, uh,
To really come to, to value.
So with that in mind, once you have the goals and yes, you can receive
their kind of proposed scope and their needs and do a needs analysis.
And you, and you have the value in mind.
Now the objective is for you to go away.
You kind of come back and you say, Uh, ideally you book your, your next call.
If you're going to propose something, and this is all assuming and customer
engagement, it works similarly with productized services, but
I'll get into that another time.
With your product ladder, different price points, et cetera.
But once you have that in mind, you can then say, okay, well, here's,
here's the price you asked for?
Here's roughly the scope you asked for.
But here's something that's maybe a little bit more expensive.
And here's something that's a lot more expensive, but here's what you would
get in terms of additional value.
If you spent that little bit more and maybe if something was even cheaper
and there was a few, much fewer, not enough things, but kind of met their
requirements, but at a basic level.
Um, and so here's, here's what we would look like if you had a couple of other
options that were potentially spending more, but you'd get a ton more value.
We'd be able to invest more in the design, more revisions, more iterations.
More pages.
More functionality.
You know, maybe I can help you integrate your forms with your CRM
on the backend, so you can collect emails and I can do all that for you.
And I can even maybe design and build out the.
The email experience.
So that the, those templates look great.
So here's what those would cost.
So here's, here's the offer that you've kind of come to me,
looking for assuming that I can actually deliver a result for you.
And here is now some additional options on top of that.
Here are the prices for that.
And what you're going to find is that not everyone is a price buyer.
And some people are value buyers.
And that's the kind of person you want.
Hey, we want to work with, because price buyers tend to be thinking
in terms of commoditization and deliverables and nuts and bolts.
Whereas you want to be thinking about outcomes and business value.
And then price your work accordingly and scope your work accordingly,
make a business case for the most.
The most value you can add and say, here's what it would look like.
Yes.
It's going to cost you 30 instead of $10,000.
But really in the grand scheme of things, if you're anticipating making it.
An additional 500 or a million over two or three or four years.
This is really just a drop in the bucket.
I'd rather, and this goes back to a previous episode that I'd rather say
in order to do this right, in order to get the most possible value for you.
Here's what I was proposed.
We do.
No.
Sure.
We can do it this lightweight way.
We just have to know that.
It's not as intensive that the work, the value may take longer to come
to fruition, or we won't go to this standard that maybe you're hoping for.
At the highest standard.
If that's your goals, nonetheless, it'll still, it'll still help you.
Close more deals.
Get more conversions the website.
So we'll be designed more functionally.
Because there are tons of them will find it and et cetera, et cetera,
whatever the, whatever, the thing that it is that you're selling.
Because once you know, their goals and why they matter, and then
making a business case with them.
Then you can propose those higher options and base it on the value.
You know, if you only closed one more deal, this thing would pay for itself.
In two months.
If you only closed at one additional deal over the course of
a year, this would pay for this.
This would be, it was a pay for itself five times over.
So how do you then position the scope and make a recommendation
based on the most value?
Now, this is where the value buyers will put their hand up and the
price buyers will still go with something that was more along the
lines of the basics that they needed.
Fine.
You have an option for that.
And then the value buyers will reach further and say, you know what?
Uh, I want to, I want to go for this more valuable option or in some cases,
they'll say I want this more valuable option, but I don't want to pay for it,
or I don't want to pay the full amount.
And really they're just revealing that they are a value buyer.
They're just maybe hesitant to spend the money.
But hold your ground, sell the value.
Reiterate the value of it against their goals and, and kind of
recreate that business case.
As the Ziglar says, be a co buyer.
Buyer of your services with them, help them kind of figure out what
the business case is, what the risk is, what the likelihood of an
ROI is based on their objectives.
And make a recommendation and obviously you're non partial.
You can still do the lower cost lower sort of.
Scope thing, but now you've got a couple options.
So instead of them, and one of the main reasons here, as well as instead
of them, Now taking your single offer and they have to pray shop it around.
Cause they don't know whether it's reasonable or whether it's.
Appropriately priced.
Now they can say, well, I can price shop each option against each other.
And I can see a range of options.
Maybe I go shop it to someone else, but their proposals aren't
going to be the exact same.
So, um, at least I have a range of options to make sure I'm not getting screwed to
make sure I'm not getting ripped off.
If they don't know what.
What things should cost.
So you give them a few different options and, uh, that helps them not need to
price shop around so much to verify that they're not being ripped off.
Otherwise, they have to kind of do that, their due diligence to make
sure that the quote they're getting is sort of reasonable in the realm of
what they should be paying, because not everyone can determine that
if they're not super experienced buying what it is that you sell.
So I just wanted to leave that with you having multiple options.
This works the same way with productized services.
Having multiple options really helps you too, to create offers at different
price points, aligned with different levels of value, and really it's
about understanding their goals.
So you can tie it back to the value, make a business case
together, be a co buyer with them.
Help them by, on their side of the table, the right option for them based on their
goals and objectives and the value.
And ultimately probably close a deal much higher than maybe that
the client initially anticipated.
But also deliver more valuable which then makes more value which then makes you
more valuable and makes them more likely to refer you in the future so i hope that
helps have multiple price options when you can it makes a big difference and you
could probably earn 20 to 50 to a hundred percent more if you do this by, for now