Archive for September, 2010

Package Selling: Can I Buy This Car With No Tires?

One thing you are going to notice over and over again when you put out information products, when you offer your services - and more, is that the average person loves to save a couple of pennies, even if they have to bend over backwards to do it.

It is totally fine for your customers to do that when they going to Wal-Mart, but you should train them not to have that mentality with you.  If somebody can't afford what you have to offer, or it is not the right fit, they simply shouldn't buy it!

When it comes to selling your product online, you need to be up-front and clear about what you are giving them; don't be afraid to say "No", and to market more.

Car with No Steering Wheel?

Let's say you went to a car dealership and you were going to buy a car; looked at the car and you said, "I like it but I already have my own steering wheel. Can you sell me the car without a steering wheel?"  Or "I already have a stereo.  Can you sell me the car without the stereo?"  They would almost always tell you "No!"

But it aggravates me when I offer membership training that includes a membership plug-in and people ask, "Can you offer me the training without the plug-in and make it cheaper?"

A few years ago, when I didn't make as much money, I might have tried to negotiate with them.  But nowadays it is a lot easier to simply say, "It is all a package deal."   I don't try to sneak in any charges; I don't try to say that they pay once but accidentally get re-billed over and over.  I am very clear about the monthly recurring - but they can't pick and choose what they want.  The offer is "Take it or leave it!"

And it is totally okay to throw in extra features that you already offer, because many of these people who try to negotiate the price down don't look at everything you have to offer; they are only looking at the price.  For example, if someone is trying to get my training without the plug-in, I remind them that after all the payments have been made, they are in for LIFE!

Lump Sum?

On the other hand, here is an offer I get every now and then:  I get people asking me, "Can I simply pay you some lump sum fee and get access for life right now?"  And what they are usually looking for is a way to cut the price because they are paying it all up-front.

As much as I would like to be the "Nice Guy", this gets back to the price training and customer training.  I want my customers to get used to paying me month after month, and not buying the whole thing out - so I say "No."

Never be afraid to say "No."  It's okay if this person who is asking you is not a perfect fit.  This definitely does not apply to everyone.  And this definitely does not apply to you.  But I have found that if someone is trying to negotiate the price down with me, they are the kind of person who always is trying to find some extra reason for why they shouldn't do something.

For example, they are not buying because the price is too high. That is one roadblock they have put into place.  Then, when this type of person finally gets in, they put in more roadblocks for why they can't watch the videos, why they can't take action on the things I've talked on, and why the things they have read about and been taught are not exactly the way they have implemented them.

I don't want that kind of person in my membership sites.  I want the kind of people who are willing to try something once without trying to be fancy or reinvent the system until they have tried it.  People like me!  If someone is trying to remove the packaging or trying to buy your membership all up-front, don't be afraid to say "No."

So what do you do and say?  How do you overcome these kinds of price objections or nickel and dime strategies?  It's simple!  You market more. You create a better sales letter. You split test.  You add more follow-ups. You remind people more.  You are more confident on your Webinars.  And you price your OTHER products at the same level as the thing you really want them to buy.

You want to train people to pay you more.  You don't want to be the "Bargain Basement marketer"; you want to be the marketer that actually gets people to do things.

What This Means for Your Offers

So when somebody asks you, "Can I buy this car with no tires?" (And by "car" I mean can they buy into your "Membership site with only half of the components for half the price") tell them "No!"

You made an offer. Everything in your membership site is totally necessary.  So they have to pay the full price - and they get the whole thing.

Just remember, the average person loves to save a couple of pennies.  But you need to retrain them so that they will actually get something out of your marketing!

This is just as much a favor for them as to you.  Be clear about what you are offering, don't have forced continuity, don't fall into the trap of selling "life-time access", don't be afraid to say "No"; and market more, sell more - and price more.