You Paid What ? the secrets of price and offer expansion

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
business.

And THIS is one of the FIRST things I
do with a client when we start working
together

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
losing

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
there

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
that will…

– 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 ?