Part of running a business is having multiple offers for your customers to choose from. Ideally, you should have at least three. Here we're going to talk about which three offers every business owner should have, plus some tips and tricks on how to create these offers.
The Freebie (Money Loser) Offer
Not many people know this, but Costco hot dogs have be $1.50 since the 1980s. They have not raised the price in the past 40 years, and their new management says they're not planing to raise the price anytime soon.
They also have $4.99 rotisserie chickens at the back of every Costco as well. These chickens have been $4.99 since 2009, and Costco has said that it has no plans to raise the price on the chickens either.
But why? They're obviously losing money on these products...
It's probably because they know that people will come to Costco just to get a deal on some chicken.
They're selling certain products just to get people in the door.
Best Buy does the same thing in their stores. They usually have a net loss when they sell things like computers or cell phones. But then they make the bulk of their earnings by selling cases and accessories for those exact same items.
Loads of very successful businesses don't make money on every single item they sell, but those losses help them earn more money because people keep coming in the door.
What's your money loser?
It's probably smart to have an offer that'll either get people in the door, or on your email list. It doesn't have to be huge, but it should still be valuable.
Remember - something as small as free biscuits at Cracker Barrel are enough to get people to choose them over the competition. Think about a thing you could offer that would make the average person choose you over your competitor.
And then offer that thing, even if you lose a little little money by making it free or super low-cost.
Hint - If you have a service business, your freebie offer will probably include some sort of information product like a book, mini-course, or a webinar.
The Low-Ticket (Easy Yes) Offer
This is going to be an offer that you want your customers to impulse purchase, so it's got to be irresistible.
The key to this offer is making it very difficult for people to say, "No." And at the same time, it's actually got to be a good money maker for you as well.
But doing both of those things at the same time can be a little tricky... That's why copywriting and positioning are so important for this offer.
Here's an example...
Let's say you're a hair stylist, and you have your own chair at a salon. How are you going to get people into your chair with a low ticket offer?
What's the cheapest service you'd normally offer as a hair stylist? A hair cut? Let's make it more expensive, while at the same time making it more attractive for your customers...
If I wanted to turn a haircut into an easy yes offer, I'd add a few things to it.
- A scalp massage.
- A special moisturizing treatment.
- Shampoo made exclusively for their hair type, that they can bring home.
These bonuses sound really cool to someone looking for a haircut, but they wouldn't add much to your workload as the stylist.
A scalp massage would add an extra minute to washing someone's hair. Special moisturizing treatment is just another round of conditioner. And I'm sure you can buy a mini bottle of shampoo to give to your customers for less than $10 a piece.
Not to mention, that at the end of the day, you'll probably be able to raise your prices when people find out about your new offer.
Just make sure that your easy yes offer, is an easy yes for everybody.
Remember - you should never put your low ticket offer at a discount. (Although your clients should still believe they're getting one.)
The High Ticket (I Can't Believe You're Paying Me This Much) Offer
People usually get the wrong idea about high ticket offers, because people wanting to sell you their systems keep telling you how great they are.
But I'm here to tell you the truth - it's not that easy to sell a high ticket offers.
That's why when someone does buy your high ticket, you break out the champaign, because you're about to make a ridiculous amount of money.
Here's the problem with most businesses' high ticket offers.
They're underpriced. Because most business owners want to sell a ton of high ticket items, so they underprice them to make them seem more attractive.
But that's how you end up killing yourself. That road leads to nothing but burn out and misery. Instead, you're going to want to make the bulk of your money with your low ticket offers.
They're easier to sell and promote. They're not as much upkeep. People don't ask for refunds, and they're not mad at you when it doesn't work.
That's why when you do decide to promote high ticket - it's gotta be worth the hassle, because people that pay you thousands of dollars are going to bother you.
You've got to charge double or triple what you think you're worth when you're doing high ticket.
Because people that love you, and the service you're providing, will absolutely pay it. Plus most of the time... the people paying you more money, will hassle you a lot less.
The people that say they can't afford my premium rates, are always the worst people to work for (no exceptions.). They are a drain on my mental health, and the reason I don't like making these types of offers anymore.
But everyone should have at least one of these offers, because you're leaving so much money on the table if you don't have one.
Let's keep the example of the hair stylist. How would I create a high ticket for her?
I'd create a bundle of services for each hair type, and sell them the same way I did the easy yes offer - with bonuses that are not that labor intensive and/or expensive. Or you could do an unlimited hair care for a year deal, and only offer it at certain times to add scarcity.
Remember - you're not trying to sell a bunch of these, two or three a month is a good goal. And they should be priced so that if you do sell three of them, they should take care of all your expenses for the month.
Do you have three offers in mind?
If not, don't worry, you can start with one and build out from there.
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