This may not have occurred to you, but undercharging is actually costing your business.
Here are 5 big problems you run into when you mainly provide low cost offerings to clients:
1. Short client engagements (so you’re always needing new clients)
2. Clients get minimal results (it takes time to get results)
3. Clients don’t value you (they don’t show up, do the work, etc)
4. Need a lot of clients (since the income from each client is low)
5. A new client makes little difference to your income
I want to break down why going “low-end” creates a lot of work for you and will practically guarantee that you will keep your income low.
The “wrong way” (what doesn’t work)
I want to show you 3 typical things you might be doing in your business now that don’t work very well, and keep you underearning.
SCENARIO #1: Offering Single sessions
• Example – $75 per session
• Problem: You need to sell 50-100 sessions EVERY MONTH to earn a
good living. That’s very difficult.
SCENARIO #2: Offering a bunch of low cost items .
• Example: $47 audio recordings
• Problem: You need a huge list (10,000 people or more) to sell a lot of these. Usually people are generating very little income with these items.
SCENARIO #3: Low-Cost Group Programs
• Example: $197 per person to be in your group
• Problem: You have to be constantly marketing to get people into your group. And these small fees barely add up.
A lot of clients who come to me are offering to work with their clients on a single session basis. Or maybe it’s a package of 3 or 4 sessions.
The basic idea is this: Lets say you offer one session at a time, and let’s say you charge $75. That means that you need to work with 50-100 clients a month to generate a pretty good income.
Here’s the problem:
• That’s a lot of work to deliver your service.
• That’s a lot of work administratively to keep track and schedule all the appointments, not to mention managing the accounting and billing too.
• And more troubling than anything else – that’s a lot of work on the sales and marketing side of things to generate the amount of interest you need in order to work with this many people.
That is definitely the hard road to success.
You have to continually be spending time marketing to bring in new people for these short engagements.
Instead, you could be spending the same amount of effort (or less) on landing a smaller number of higher end clients where the engagements last longer, your clients are more committed, and you are getting paid a good amount of money.
WARNING: Charging by the hour limits your income.
The secret to breaking free from “underearning”
If you are a coach, holistic practitioner, consultant, healer, trainer, author, therapist, or a business owner with services that make a positive difference AND you haven’t yet gotten to the income you want, you're about to learn a critical strategy that allows you to work less, earn more, and make a bigger difference.
This isn’t going to be about abstract wealth consciousness (although I think money mindsets are important). This is actually something very practical.
The strategy is this:
Offer “high-ticket” packages that deliver a big result that solves an urgent problem or pain that your clients have.
Doing this immediately shifts you from chasing low-paying clients to being attractive to clients who are highly motivated and value the transformation you offer.
These clients will pay anywhere from $1,000 to $10,000 (or more) for valuable results.
The best thing about this: You only have to work with a small number of clients to make a great income.
Focus on value, not $ per hour
Offering premium packages helps you get out of the trading-time-for-dollars model.
Because clients pay you for the massive value you provide, instead of haggling over your hourly rate.
This ONE change in your business – shifting from low-end packages to high-end packages – changes EVERYTHING.
Note: I’ve written a separate PDF called “Premium Manifesto 2016” that will bring you up to speed. You can view that here.
Well that’s it for this Issue. Next time I’ll write about another solution to problems you might be having and how to reverse them. If you need step by step instructions on how to implement this and other ideas I give on Creating Customers. Please go to www.pasharana.com and sign up for my one on one Coaching program. You can’t lose by investing in the growth of your business. You probably Tip more than your investment each month.
President: The Pasha Group