There are 3 ways to increase the size of your business
Increase the number of customers, the frequency of purchase or the amount they spend.
Today I’m going to teach you a simple trick you can implement in your pricing immediately to increase that transaction value.
Of the three, it’s by far the easiest. If someone’s going to spend $10,000 with you, what’s another $1,000? That extra 10% just took you from a $300,000 a year business to a $330,000 business. That’s an extra team member, a cooler office or simply an extra 30k in your pocket.
So how do you do it?
Like with all things proposals, it starts with the discovery process or client meeting. If you gather all the required details then this is all a doddle.
When quizzing your clients you’re looking, among other things to find out what should be an essential and what should be a ‘nice to have’.
You’re also looking for the stuff that makes their eyes light up. What, when they’re talking about it make them talk faster, start throwing ideas about?
Those are the things they will pay for. Remember people buy on emotion and justify it with logic? This is the emotion part and we’re going to use it.
Now you know what they will pay for
By this point, after the meeting you should know what we’ll call the project essentials. These are the things they can’t do without and simply not having them wouldn’t allow you to do the job properly.
You’ll also have the bonus things that aren’t what you’d call essentials, but nice to have’s. Lastly you’ll have the couple of things which drove them mad and excited them to no end.
Now the idea here, is not to break down every single part of the pricing. Pricing breakdowns are about the worst thing you can do because then people start questioning why they need this bit or that bit. Avoid that. If you’re selling a website with hosting, lay it out like this:
You split hosting up in this instance because it’s charged differently.
You’re going to split this up into two sections
The trick here is to put the project essentials as one line item, then put all the nice to have’s as optional items they can ‘tick’ on. You can do this in Better Proposals easily. Don’t go too mad. You don’t want it to look like a shopping list.
This prevents your pricing tables getting too long and messy. You don’t want this to be a big mad sales pitch, you simply want this to be something functional they can look at, choose what they want and move on.
Now, here’s the little pricing trick.
This isn’t really about pricing individual items, this is about boosting the transaction value. Remember, this is in addition to your project essentials.
By framing it this way, you stop them asking for a breakdown of the essentials because, well, they’re essential, you can’t remove any of it in the way you can’t remove a goalkeeper from a football team.
What you want to do is price the things they really want a little higher than usual and the “nice to haves” lower than you would usually. Make sure there’s still good money in it of course.
Now, you know they’ll probably go for the couple of things that they really wanted and if the other stuff is super cheap then they’ll likely go for it all anyway once they’re in that buying state.
This only takes a few minutes
It will take you a few minutes to adjust the pricing but it’s a small price to pay to add an extra 10-15% onto any deal. This is also a good way of bringing the project in under budget but allowing the options to push it over budget. They’ll happily find the money if it’s for things they want.
Give this a spin on your next proposal and see how you get on. Leave us a comment somewhere and let us know your thoughts.