Hogwash!

That’s what I say to people who tell me that their business is 
purely and solely a "cheapest price business."

People who stubbornly insist that "MY business is different" 
are right, but not in a good way.

Their business is different because it will never make big 
money.

People who are unwilling to open their eyes to BIG ideas are 
solidly parked right in their own way... their own BIG obstacle 
to success.

Big money is made by translating great ideas from outside your 
industry -- whatever it is -- into your industry. What gives you 
your competitive edge is a unique selling proposition (USP).

That’s the key... not your low, low price. (Although in some 
instances your price may be part of your USP.)

Recently, I was consulting with a client and I was explaining 
my opposition to selling by cheapest price.

She insisted that hers was an intangible, not a product; that 
my examples didn't apply to her business; and that, basically, 
I had my head up my butt. I tried to explain in terms I hoped 
she'd understand:

* You can fly coach or PAY MORE to fly first class in the same 
  plane and get to the same place at the same time

* You can get financial planning for free from over half of all 
  financial planners (who make their money only from commissions)
  or PAY MORE for the service and still pay commissions to other 
  fee-based planners.

* You can get your taxes done by H&R Block or PAY MORE to use a 
  CPA


So the critical question is:

“Why Do People PAY MORE For Some Services When The CORE SERVICES 
Offered by CHEAPEST PRICE Competitors Are Pretty Much The Same?”

“Debbie," I told her, "You've gotta understand: value 
differences don’t have to come from the ‘core’ item."

It doesn't matter whether you're talking about a product or a 
service. Value differences usually come out of areas of 
expertise and service such as:

* Exclusivity
* Access
* Guarantee


"And Debbie," I explained, "it's a hell lot easier to make money 
by selling half as much at double the price. Does that make 
sense?"

It made sense to Debbie and I hope it makes sense to you! Just 
to make sure, I'm going to give you...


5 QUICK-TURN TACTICS for closing BIG TICKET deals

#1 - Compare apples to oranges.

“Tired of dragging out a bulky food processor and guessing which
attachment is the right one for the job? The compact Ultimate 
Chopper is 4 machines in 1 so you can replace your food 
processor, coffee grinder, standing mixer and ice cream maker 
and gain more counter space in your kitchen.” (Ultimate Chopper)


#2 - Decrease the price by adding valued component parts.

“Bring your spouse for FREE! Yes, not only can you come, but 
you can also bring your spouse for FREE. This is a $995.00 
value by itself.” (Real Estate seminar)


#3 - Identify the unique, invaluable aspect of your product.

“Quite honestly, the majority of currently available 
bodybuilding training and nutrition information today is 
never going to produce gains for 98% of the population.

"The pros simply have much better genetics for building muscle 
and are taking massive amounts of anabolic drugs...I’m not a 
“Mister” anything. I’ve never won a title.

"I’m just a guy who after 22+ years of trial and error has 
figured this stuff out and can relate to the plight of the 
genetically average trainee. I absolutely know what works for 
genetically average bodybuilders who want to maximize their 
potential. I know exactly what the average guy has to do to 
make muscle mass and strength gains as fast as genetically 
possible.” (Bodybuilding)


#4 - Make the high price itself a benefit.

“Organic foods are more expensive because production is more 
labour intensive and without herbicides, pesticides and other 
chemicals, the yield is generally smaller.” (Organic food)


#5 - Break down the big amount into smaller amount.

“Valuable legal services for less than a cup of coffee a day, 
from top law firms! Protection for you, your family or your 
business!” (Pre-paid legal services)


If you are going to use "lowest price" to get your foot in the 
door to acquire a new client, then the race is on to "switch" 
that newly acquired client from price orientation to value 
orientation BEFORE somebody finds 'em and offers to beat your 
price.

The Lesson: You CAN charge more for your stuff as long as 
you’re showing you client that even though she’s paying a 
premium price, she’s getting a good value. Think "added 
value." Think "golden handcuffs"; benefits/service so good 
I won't walk away from it, even for a lower price.