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| | The Christian Millionaire Mindset Mentors Network is not currently active and cannot accept new posts | | A powerful marketing lesson regarding higher ticket items | Views: 1218 | | Mar 06, 2007 6:02 pm | | A powerful marketing lesson regarding higher ticket items | # | 
Jack Weinzierl | | One of the most highly respected marketers in the direct sales industry is Yanik Silver. He is in no way associated with our business, nor are we with his. But Mr. Silver is a multi-million dollar business man who knows of what he speaks! Here is a powerful marketing lesson regarding higher ticket items.
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If you boil down my biggest profit windfalls in my business (and the most astute marketers I observe) it has come down to selling premium products and services at premium prices.
That's how my business has leapfrogged from 6-figures to 7-figures and now multiple 7-figures a year!
I really love high priced products and you'll see why in a moment...
Personally, I've sold everything from $5,000 workshops to $14,500.00 "Apprentice Programs" to $20,000 MasterMind groups and lots in-between. My most recent high-end product is a $40,000+/yr program for cosmetic surgeons.
Stick with me and I'll share with you a few of the things I've learned...
First, let's say you want to make an extra $1M this year - then you'd have to sell 20000 copies of your 'doohickey' at $50. Or it could be 2000 copies at $500. Or better still 200 copies at $5000. It's a lot easier dealing with 200 customers than 20,000. Think of all the customer service and infrastructure, etc.
That's why I wanted to share with you my newest insights about how to dominate the marketplace selling high priced products and services...
I've put together 7 reasons why selling high-priced products makes so much sense:
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Reason #1: More Profits
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Okay no surprise here. When you sell for higher prices you make more profits. Very few companies have been able to sustain a "low price" position in the marketplace. Sears couldn't. K-Mart couldn't. And now it remains to be seen what Wal-Mart does with that position. (Actually if you study Wal-Mart you'll notice they are bringing in some significantly high-priced, high-margin products.)
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Reason #2: Better Customers
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Price qualifies your customers more than you might realize. The ones that pay $7 for an ebook are going to be the ones that whine and complain the most! They'll tax and strain your customer support team. But in comparison the customers who spend significant amounts of money are surprisingly easier to deal with and less demanding.
A perfect example of this was last week when I took my Aston Martin into the shop for some minor work. I dropped off the car and needed a loaner. Usually they provide Mercedes loaners for their customers but they didn't have one available. I told my service manager, Eric that I really didn't care what I drove out with. He laughed and said the Aston customers are the easiest ones - just like me they could care less what kind of loaner they get. But the C-class (cheapest model) Mercedes customers were the worst because they would rant and yell if they did not get a Mercedes loaner.
What's more the fact that your customers spent more money means they'll be more compliant and actually do what you tell them to do. As another example I've been to $500 seminars and I've been to $15,000+ seminars. Which ones do you think I pay more attention to and make sure I extract more value from? Of course - the more expensive one.
Think about the last time you gave free advice to someone - what happened? That's right. Nothing. But if you had made them pay you for consulting - they would have taken it to heart.
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Reason #3: Psychology of Price Works In Your Favor
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We've always been taught "You get what you pay for". It's not uncommon for a prospective customer to discount a product or offering because it's "too cheap". If the price is not in line with what it should be you'd think there is something wrong. If I could buy my Aston Martin from the dealer for $25,000 - I'd immediately be working overtime on what could possibly be wrong with the car. There are certain products that artificially keep their prices at significant premiums because price is so highly correlated with value.
What's more, you also gain instant respect and recognition.
Only a "true" expert would charge high prices - so that puts you in that category immediately. (Of course, you better have the goods to back it up.)
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Reason #4: Can Deliver More Value
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Ultimately the value you provide will dictate the profits you receive from your customers. Increase the value and your revenues go up. By selling high-profit products with high-margins you have lots more wiggle room to deliver sensational value. You can really "WOW" your customers and buyers. Not only can you throw in high-value extras but you can afford to deliver truly unique unadvertised bonuses and follow-ups.
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Reason #5: Some Buyers Will NOT Buy Low-Priced Items
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It sounds crazy but some customers are only premium buyers. If you gave them a discount it would actually decrease the response. Plus, some customers are only comfortable buying in the high-end range. I was shocked when I discovered with my first high-priced offering. My Apprentice program was $14,500 and at the time this was head and shoulders above any other marketer.
I thought my best prospects for this program would be customers who had already bought from me and were happy. Surprisingly about half of the people in this program had *NEVER* bought anything from me before. Their comfort level was a premium offer.
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Reason #6: Create Big Paydays
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All the big numbers you've seen highlighted in the marketplace have all come from creating high-priced offerings. You've seen some of the numbers...$1M in a day, $900,000.00 in 8 minutes, $3.5M in one week, etc. etc. It's way easier to hit these kind of big paydays by only having to sell to a small handful of customers.
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Reason #7: You Will OWN The Marketplace
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I think this is the biggest reason of all...
There are 2 big parts to this. First, you can afford to make big payouts to affiliates to push your product. Listen, if an affiliate has a choice between 2 relatively equal products but one pays them significantly more - in most cases that affiliate will go with the higher commission.
With high-priced product you got the room to give affiliates such a significant commission that you'll see a feeding frenzy of activity. (When they're getting a big affiliate check the affiliates pull out all the stops themselves like incredible free bonuses, etc to make the
sale.)
Plus, the other piece of the puzzle is you can spend more on your own to acquire a customer. This is huge! If I'm in the same marketplace and I'm competing against who only has $100.00 product at the end of their funnel and I have a $10,000.00 offering - there's going to be almost no contest. I can spend more on Pay-per-click, more on advertising, more on affiliate pay-outs, more on offline follow-up, more on testing unusual advertising places, etc.
etc.
And I can make bad results work for me. If I'm direct mailing for a high-priced product I only need a fraction of a fraction of a fraction of the response for a low-priced product to make me money.
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