This week I’m going to talk
to you about price elasticity or
the process of expanding your offer using
the analogy of me getting a haircut.
Being the only male Blake in my family
who actually has hair puts
me in the somewhat enviable position
of requiring a haircut pretty regularly
And to this end, I have happily paid from $12 up
to about $60 for pretty much the same
OUTCOME each time.
So what’s the difference between a
$12 dollar hair cut and a $60 haircut
Well, quite frankly…not much
Is there a 400% difference in the skill
of the hairdresser ? no
Is there a 400% difference in the scissors
that they use ? no
So how can I (or anyone else for that matter)
justify paying 400% more for
pretty much the same outcome ?
Good question- because as it turns out you
can apply this analogy to almost ANY
And THIS is one of the FIRST things I
do with a client when we start working
So getting back to the hairdressing example…
The answer is that it’s a number of things
Ok the place where I have paid $60 have a
process they take you through which adds
value to the PROCESS and the EXPERIENCE
let me list a few of them…
The salon is well fitted out immaculately
clean and smells good
The staff are well chosen, attractive, well presented
and are ENTHUSIASTIC
They give you a 3 minute massage and incorporate
aroma therapy into it
They give you a proper coffee (not instant)
with a nice biscuit to go with it
They trim your eye brows and your ear hair
Overall it’s a relaxing and pleasant experience
So here’s another question for you ?
Does it cost 400% more for all of those things
to be incorporated into the haircut experience ?
Absolutely not !
It’s the little things they have included in
the service, the process and the experience
that justify the higher price.
Ok next question – do I go there EVERY time
I need a haircut ?
No – which in my opinion is business they are
I could easily think of 3 ideas right now they could do
in my relationship with them that would have
high perceived value but low cost to them
that they could do to improve things even more
so that EVERY time I need my hair cut I go back
You see, 20% of your buyers will purchase a PREMIUM version
of your product or service but ONLY IF you offer it.
In my experience, almost ALL BUSINESSES can add something
to their product or service in the form of a package
– Enhance and compliment what they sell
– Allow them to better serve their clients
– Allow them to increase their profit and dollars per sale
AND do it in a way that their customers are happily
pay the new fees
So your question now is…
What could you add that would take price comparison
out of the equation and add massive VALUE INTO the
equation and allow you to skyrocket your sales
and your profit EVEN more ?
at the Professional Sales Master Class on Tuesday
24th June in Perth at the Rendezvous Hotel on
If you want to come along yourself or send some of
your team go to the link below and secure yourself
some seats while their are still some available.
this link and do so right now.