When I was hiring for marketing director earlier this year, one of the questions I had for the candidates was, like, how do you approach creating offers? And most of it them heard it, like, literally 9 out of 10 marketing director candidates heard it as, like, oh, do you mean like making discounts? Like, you know, offering discounts and stuff? I'm like, no. No.
That's not it. No. The offer is is it's not just the thing. It's all of the conditions around the thing. So think of it this way.
So if you're if you go to a Starbucks and you buy a pumpkin spice latte. Alright. There is a pumpkin spice latte. Aventi or whatever the fuck they call it, and there's a price for that. Like, that's that's the core of the offer.
Right? For x amount of dollars, you will get a pumpkin spice latte. But there's an implied guarantee in the offer or maybe it's more than Simplero because Starbucks is famous for we will remake your drink. Anytime if you're not satisfied or if you're not happy, we will remake your drink for you. That's part of the offer.
Right? The offer is the whole package. Like, we'll make it for you So it's hot and like it and if it's not, you're not happy for whatever reason. We'll just make it a we'll just remake it, and we'll keep remaking it until you're happy. That's what makes it an offer.
The offer is all the stuff that we put around it to make it more compelling. More irresistible. So the whole game here is to to make an offer that is irresistible where people like oh, crap. Like, I would literally be dumb if I said no to this offer. So first, Let's talk about pricing.
Pricing again is something that trips a lot of people up. And they're like, oh, much can I charge? And I don't wanna charge too much because I don't wanna be, like, one of those people are a bad person that charges a lot. And and and maybe you have hang ups about money, and then you project that onto your customers and all kinds of things. Right?
And then and some people, like, just charge maybe, like, charge way too much compared to what the offer actually is. But price Price is what you pay and value is what you get. So price is what you pay value is what you get. So just because something costs a lot of money doesn't mean that it's it's it's expensive. Right?
So if I'm if you're if I'm saying to you, like, I have an offer for you. It's a $100,000, and you're like like, oh, a $100,000. That's quite a lot of money. But if I didn't tell you, But it's a it's a house that you can turn around and sell for a $1,000,000 because this house is worth at least a 1,000,000 a half. It's like, oh, now a $100,000.
It doesn't sound like so much. Right? So it's all relative to what the value is of what we're trying to sell. When it comes to pricing, there are generally 4 strategies that we can take. We can try to be the cheapest.
We can try to just kind of be average with the market. We can try to charge a premium or we can charge luxury. I shouldn't say try. We can do. We can try to be the cheapest or market average, or we can go for premium or luxury.
Premium is what you want. So when you're trying to be the cheapest, and that's your reason that people should buy from you, well, there's always gonna be someone else's willing to sell it cheaper. Alright. So then that loses out very quickly. And if you're the 2nd cheapest, nobody get like, you have zero advantage.
Market average, like, then you're just average with the market. That's not that interesting. Luxury pricing is like, you know, Chanel or or I don't like, Louis Vuitton or whatever, like, handbags and, you know, like, that those kinds of products where the fact that it's expensive is part of the attraction. Right? It's a status symbol.
Look. I can pay, like, $8,000,000,000 for a useless handbag. Like, look how cool I am. I must be really good. Right?
It's a status symbol, the fact that you have it alone. So for our purposes, what we want is premium. So what that means is it's above the market average. So we do we charge more, but we also deliver more. And the reason why you want to charge premium pricing is because higher charging premium pricing increases your client's emotional investment perceived value.
Like, so emotional investment, we all know that when you pay more for shit, you value it more. Right? You and you perceive yeah. Like, the emotional investments, like, oh, shit. Now I need to take it seriously.
Like, just the the story I told the other day about paying $15,000 to meet with Richard Branson. Right? Like, that was an emotional investment for me. I was like, oh, crap. I need to kinda take this seriously now.
And then I did. And even though I I only had, like, 30 seconds with a man, it was still ended up being super valuable because I was so emotionally invested. Right? Perceived value. Like, whenever we buy wine, we just assume that the more expensive bottle of wine is gonna be better because it's more expensive.
It must So just because it's more expensive, the perception is that it must be better. It also increases your client's results, which is interesting. But the reason why is that when they're when they paid more, they take it more seriously. And and Also, you tend to attract clients that are easier to work with, that are more likely to be taking action. And so they actually get better results, which is great for you because then you have better case studies.
It increases the ease of working with clients Simplero because you track better clients. Like, the people that you have to discount to get are usually always the worst clients. And so they're gonna be a hassle down the line. So usually, it's not it's not worth it. It also increases the money that you have available to fulfill for your clients.
Right? When they pay you more money, you can hire coaches or hire more instructors just invest more in having a great experience. If you're doing an in person thing, you'd you'd be at a nicer hotel, you can have better food, all those things. So you can create a better experience for them. For you, high premium prices increases your profits.
It naturally. Right? Like, the if your cost of fulfillment is the same, but you you charge more, like, all the extra charge, money that you charge is go straight to the bottom line. So this is the number one way to increase your profits. Just charge more.
And keep the expenses in check, or you can charge even more and then increase expenses some too. It increases your perceived self worth. It increases your perception of impact because you're actually seeing better results with people. You it can increase service levels the same thing as we talked about before. And if you have a sales team, then they are gonna have stronger conviction.
They're gonna have more better commissions. They're gonna have more money to work with, but also more conviction because they're seeing the the results that you're generating with the clients. So that's why you wanna charge premium pricing. And then This is the reason we do the high take it, is typically 1 5th of your prospects are willing to pay 5 x more. Right?
So there's always gonna be someone who's willing to pay five times what you're currently charging, and that can keep ongoing forever, essentially. So, like, of those one 5th, there's gonna be another 5th of those that are willing to pay 5 x that, and then you can keep going. And so that that's how you can get into really high priced stuff. Like, you know, charging $350,000 a year for, you know, a for one on one coaching if you're at that level. So this is why you wanna charge premium pricing.
Now the in terms of the offer, so the offer itself is constructed of some core elements And then some, like so basically, like, one core thing, then some supporting elements, and then some bonuses. And you can structure it. Like, your offer is gonna have multiple things. Right? It's gonna have, like, we have a there's a there's, like, training on how to do X Y Z, and then there is a weekly group coaching call where we go into blah blah.
And then there's a community where you can access people that are on this journey with you 247. And then we do every quarter, we do an in person retreat or or an additional workshop or some things. There's gonna be different elements to your offer. Some of these, you position as part of the core, and some of them, then you pull out as bonuses. And the reason why you pull stuff out as a bonus is because it draws attention to it.
And if your bonuses are really compelling, Your bonuses can be something that becomes emotionally just so compelling for people to that they want that. That they'll buy your main thing to get the bonus and the bonus itself is worth every dollar you're charging for the main thing. That's a very powerful positioning. Because psychologically, when we feel like we get something for free, it has an incredible draw on us. The difference between there's been experiments.
Like, the difference between, like, chocolate, 10¢, and chocolate free is, like, ridiculous. Right? And and it's not that, like, 10¢ or even a cent or something is, like, is a lot of money to people. It's just the difference between free and not free is huge. Huge psychologically.
And so by taking things that are part of the offer and positioning them as a bonus, psychologically, they're free. Free with purchase of your main thing. And so when it comes to figuring out what to put into your offer, We're looking at the value equation here. So this is something Alex or Mozzi came up with. The idea is the bigger the outcome that you can deliver and the higher the perceived likelihood of achievement And the lower the delay that it's gonna take people time delay to get that outcome, and the lower the effort and sacrifice that they're gonna have to do to get there, the higher the value is.
So Breaking that down, if you offer something that's an outcome that's really, really, really compelling. And you can in their minds make it seem like it's almost impossible for them not to achieve this. Outcome. And you can do it fast rather than slow. Right?
You can get it tomorrow, and they can do it without like, they can get the result without having to do anything. Like, like, done for you. Like, done for you is, like, very low effort and sacrifice. Right? Time delay, we'll get it done tomorrow.
This is something I really, really want, and I that can virtually get it. Like, they feel certain that they're gonna get it. That's high value. That's high value. If we're saying, oh, but it's gonna take a long time, or you're gonna have to do a lot of work, or they don't feel like they're likely to achieve it, all of that is gonna pull the value down.
So what we wanna do is we wanna engineer it so that we have as big, you know, components above the line here and as small as possible below the line. Within real like, within what's realistic, but but those are the parameters that we have to work with when we wanna increase the value. And remember, prices what you pay, values what we get, and the only reason that people pay money for stuff is they feel like the value is bigger, than the monetary price. Right? We feel like the value of that pumpkin spice latte to us is more than the $5.79 or whatever the hell it costs to buy that thing.
Right? Otherwise, we're not gonna make that trade. We live in a in a world, in a country where all trade is voluntary, most of it anyway. This kind of trade is. And so we have to make it so that people want it because they feel like the value of what they get is bigger than what the price that we're asking for it.
When it comes to figuring out what to put in your offer, here's the process. You wanna identify what is the dream outcome, And then you wanna list all of the problems and objections. Right? So in order for them to get from your problem, to the outcome that we promised that we deliver for them. What are all the problems that stand in their way?
And what are all the objections that they might have? Oh, but I don't have time or I don't know how to use, like, Google or I don't know, like, if I can I I don't have access to a gym or I don't really have a kitchen where I can cook at home? Like, whatever it is, that their problems and objections might be, you wanna brainstorm all of those, and then keep it running list. So every time you talk to someone, every time you're on a sales call with a client or someone something, then our coaching call, you you mentally make a note of what are the problems and my objections that they mentioned. And then you create name solutions for each one.
So if it's like, I don't have time, like, come up with a way that they can save 3 hours a week, which is what they need for your program by doing something. So, like, then you can do a name solution for how to save 3 hours each week. So that time is no longer objection. Or if it's that they don't know how to use Google, then you can do a training on how to use Google and give it a name and include that as a bonus or as part of your value stack, your offer stack. And then then you you remove all of the items that are low value.
Basically, you're looking for things that are high value, eat as easy as easy to sell, easy to fulfill, and unique, or hard to compare. So that way, your offer becomes really unique. Right? And that's a great thing because that means, you know, people aren't gonna be like, oh, but I can get the same thing for x at this other person. No.
You can't because this offer is unique. That's what we're going for. Yeah. So the that's really essentially, like, that's the core of the offer is in terms of, like, what's included and what do you charge for it. Right?
Look around the market, position yourself at a premium to the market that might be 15% above the market. And then really figure out all of the problems, all of the objections, and deliver on every one of those that you can. The more you can deliver on in your more objections and problems that you can deliver on in your offer, the easier it's gonna be to sell. Then once you have that core, you can enhance it using scarcity, urgency, bonuses we already talked about, guarantees we touched on a little bit. And naming.
So scarcity is when there's only a few units of something. Alright. So it's like The first 10 and you can combine this with bonuses. So this bonus is only for the first 10, 5 or 10 who buy, for example. Right?
Or I can only I can only work with ten people at a time, so they're literally only ten seats. Right? That's the way that you can do scarcity. Urgency is a time limit. So, like, this offer is only available till, you know, Sunday at midnight, or this bonus goes away Sunday at midnight.
So that's a way that you can use Scarcity and urgency are fear tactics that you can use to push people over the edge. When they're like, when they're on the fence, they're like, I kinda wanna but I'm not a 100% sure. And, like, then you can use scarcity and urgency to push them over the fed the defense. Using fear. Only do it in service to people.
Right? Only do it if you know that, like, in your heart, you're here to serve people, and that's what you're doing. That's where you're gonna that's your commitment to yourself and to them. And only do it if it's real. Right?
Don't use fake scarcity and urgency where, like, oh, but then it didn't go away or then you sold 15 or whatever. Right? Like, Like, it's very, very common in the industry to do that, and it's just really bad karma. It's really bad practice. But bonuses like we said, positioning things as bonuses helps increase but perceive value, and it makes it more attractive.
Guarantees, really important. Let me see here. Yes. I have notes and bonuses. You guys can read that in on your own.
So I covered most of it. Guarantee is very, very important. So, guarantee I mentioned with the Starbucks, with the coffee, right, that that, hey, if you if you don't like the drink, we'll remake it. That's a guarantee. And there's different kinds of guarantees.
The whole idea of the guarantee is it's a risk reversal, meaning that when people spend money with you, they're taking a risk. You might not deliver. Like, it might not be what they thought it was gonna be. Like, there's a risk inherent in it. Like, they're guaranteed partying with their money, they do not know for sure what they're gonna get in return.
That's a risk. The more that we can do to reverse that risk and say, hey, you're you do have zero risk. I'm gonna take the risk. It's entirely on me. The risk is entirely on me.
The more we can do that, the more that's gonna help people overcome their their fear of buying as well. And so a couple ways to do that. We can do the unconditional. So that's the typical 30 days. No questions asked.
Like, money back, we can do a conditional. So if you do X Y Z, if you do all your homework and you submit your worksheets and you still haven't gotten any results after 30 days, then something. Right? A typical thing is, like, then I will we will keep working with you for the next 60 days, 111, and to implement this. And if then you still don't have any results, we'll refund you everything.
Or we'll give you double your money back. Right? You can make really compelling guarantees that are that are like, yeah, 30 days, no questions asked. 60 days, if you don't have any results, we'll work for with you for another 60 days. And then if you still don't have results, we'll double your money back.
That's pretty compelling. Right? That that like, oh, shit. Yeah. They stand by this.
You can also do anti guarantees. So this is where you're, like, deliberately no refunds. We're so confident in what we do. We don't offer refunds. Like, if you don't get results, it's on you, and and that has nothing to do with us.
And so we don't offer getting refunds. You can do that as a strategy. And if you do, do do it, like name it. The the bottom line of the guarantee is, like, have them or, like, whether it's an anti guarantee or or an actual guarantee, have it and hit it hard. And the implied guarantees is where you're saying we're only gonna be paid on performance.
We're gonna charge we we work with a company called FlexPay. And they help recover failed transactions. So whenever we we do the monthly rebill on on clients, if that transaction fails, FlexPay will come back and say, alright. Based on our AI and training and, you know, trillings and trends or interactions in our dataset, we think the highest likelihood for getting make making this transaction go through is if you retry it at this time and date and in this particular way, and then they they get paid a percentage of what we end up recovering over and above what we recover without them. That's their business model.
Right? So it's based on performance. You will like, I will do lead generation for you or or marketing or sales or whatever, and I'm only gonna get paid a percentage of the sales that you make of that whatever comes from me. That's a performance based payment model, and there there's an implied guarantee in that. So, yeah, bottom line, hit your guarantees hard.
Definitely have them. Don't be scared of offering a guarantee. So a lot of people are like, oh, shit. Don't be your money back. Oh, crap.
I'm gonna go bankrupt. No. You're not. Because what's gonna happen is you're gonna sell, you know, maybe 10, 15, 20% more. And then of those, maybe 10% of those are gonna ask for their money back or double their money back.
So net net, you win. Net net, you win, but, yes, you're gonna end up paying some people double their money back, but you sold way more because you had the guarantee. So it works out. So don't be scared of doing it. Stack the guarantee is doing more than 1 and name them something cool.
Like, give them a cool name. Naming is really, really crucial. Which is the next topic here. So this is a formula from, again, Alex Ramosi. But give stuff a cool name as much as possible.
So his his formula's magic met you know, make make a magnetic reason, like back to school, name the avatar, stay at home moms, give them a goal, pain free, any given time interval, 21 days, and then they'll have a a container word challenge intensive. Something like that. Right? That's it for the offer, guys. That's kind of the the teaching, the training on it.
You guys have access to this this file here. Maybe last thing to mention is when it comes to delivery, right, we can these are some of the parameters that we can work with. So in terms of group size, we can do anywhere from 1 to 1 to small group to 1 to many. Right? We can do in terms of effort, you can be doing yourself, done with you, or done for you.
In terms of the support, we can do in person online phone support, email support, text support, chat support. Consumption formats can be video with 2 o's, apparently. Video, audio, text, or live in person. And then speed convenience 247, 95, wanted through through Friday, you know, specific and guaranteed response time. So when you're putting together your offers, like, you know, you'll get access to training, which you have 247, you have a community that you have 247, it's small group format.
You have access to me over, you know you know, text or Voxer or whatever, and I guarantee a 24 hour response time or, like, you can put these different elements together into your offer, and these are some of the parameters that you can work with. So with that, your homework is to construct your offer and post it in the forum, I'm gonna follow-up with a thread on that later. We're basically gonna do here let me see here. The questions are, what's your price point? What's included in your offer?
Name your offer? What will you do for scarcity, for urgency, what will you position as bonuses, and what guarantees are you gonna offer? These are the questions you need to ask ask yourself as you construct the offer.
Comments