I’m sure that every one of us has heard that at one time or another. Here’s how from Yourbusinesscoachingclub to reduce hearing that, can’t totally eliminate it, and turn it into major sales.
When I started coaching I heard a lot of people say “don’t lower your price, what we have is worth it.” However, out in the “real world” that I’m in, and I’m sure that you are in, there are a lot of people saying, “Wow, that’s expensive.”
I’ll give you two key reasons why that is the case and several ways to avoid it.
Many coaches target the wrong market. Some will NEVER buy at almost any price. Most are a waste of time. But I’ll show you how to get more of them and avoid those that are a waste of time.
You are selling “business coaching” and not the “value” of coaching. Sell value and you’ll see your sales closes go up 5 to 10 times from where you are.
Offer something at a price they can afford so they can experience what you have, and they will likely take a bigger step next time.
Targeting the wrong market.
Here’s a rule of thumb I use.
Business Coach– businesses under $500K in revenue mostly work from “scarcity” thinking. They are stuck in a mode of what they can’t do. They can’t market because they didn’t have enough money last month, so they will cut more out this month, marketing that would generate enough, or even coaching that could help them get out of the rut they are in. They are stuck in a downward spiral. For those below $500K in revenue most will not change even when you show them how. If you want more success, target businesses over $500K and watch your results move up as well. Everything is about increasing the effectiveness of your time. Spend your time where it delivers the most return.
Business Coach – Above $1M most will spend the money IF you can prove your value. We’ll discuss this later.
Find the RIGHT target market for your business and price.
Life coach – Similar concept. Families at $75K income and below find it hard to spend money, even if it would make them better. Singles are freer with their money so that level may move down.
I go after the easier target market.
Sell Value Not Coaching
This applies whether you are selling into the lower income market, or the higher income market. If you’ve been selling “coaching”, most people don’t understand coaching, nor what it will do for them, that’s the value that it will deliver.
Your prospect isn’t interested in “coaching”, the ONLY two things they want to know is:
“How will whatever it is you have to offer help them resolve a problem they have
They aren’t interested in “coaching,” or the fact that you will help them build a business plan, or have a step by step process to ______________[fill in the blank for yourself], or that you are a “certified” coach, or have been working in their industry for 20+ years. None of that matters in the slightest.
I know that shocks some of you to the core, but it’s the truth, and it’s the reason you haven’t been successful up until this point.
Let’s look at some of these concepts, but from the prospects viewpoint, not yours. If you are the prospect, does “certified coach”, or “been in this business for 20+ years” or even having an advanced degree in it, guarantee (I said GUARANTEE, absolutely without fail) that this prospect will get what he wants, either a fast growing company, or removal of specific problems he’s facing?
If you are honest, the answer has to be NO.
Don’t you know people that have done what they do for 20+ years and are absolutely horrible at it?
Don’t you know “certified coaches” that are absolutely horrible at coaching?
When it comes to advanced degrees, I’ve coached lots of top executives in business with degrees as long as your arm that say “Wow, your causing me to think about things I’ve never run into before.” In fact, isn’t a coach supposed to help “think out of the box?”
Once you face up to the fact, that what you’ve been selling, and saying isn’t what the prospect wanted to hear, and you make that transition to the fact, that the prospect wants to hear what kind of results you’ve brought to others (RESULTS), and what is the VALUE of those results, then you will see your own results and income go through the ceiling.
Sell value, not what you do.
Find the Acceptable “ENTRY” Price Level for Your Market and Lead Them Through the Thought Process
Selling a product or service that appears to be “expensive” to the market you are selling into, becomes a high risk situation. The higher the risk, the more time you will have to spend developing the relationship and trust. I’m sure you’ve heard the phrase that people buy from those they know, like, and trust. Well, that’s where we’ve got to spend our time. It’s not likely that you can show up, meet someone and instantly sell them a several thousand dollar coaching job. They have to get to know you, like you, and trust you. Takes time.
So, how might we do that?
Let’s look at this situation.
Getting to know them, like them, and trust them
You are walking along the aisle in your favorite grocery store. There is a little old lady standing there with something on the end of a toothpick. The smell entices you to go over. Your mouth is watering, so you take one to taste it. It’s really good, so she offers you more in a cup to eat. It really does taste good. Then she makes you an offer you can’t refuse, a whole bucket full to take home to the family for dinner at $1. You can’t buy dinner for the family at that price, let alone that tastes THIS good, so you take it home for dinner.
(She just gave you VALUE, lots of it for your money. And it tasted so good, there is no way you could refuse this offer. THINK how you could do this with your business.)
Of course, the kids go ape over it just like you did and they are begging for more. The little old lady did give you a coupon to buy more, or a coupon for next month’s special. So, when you go to the grocery store the next time you are looking for that product so you can guy an even bigger bucket of this stuff.
As you got that original sample from the little old lady, she also had you sign up for other specials, including being notified at the next birthday, or special family event where they will load you up with coupons for bigger and better choices.
Keep in mind that you probably weren’t looking for what the little old lady had to offer, and would never have bought it if you hadn’t had that opportunity to try the “free taste.” Now, you are buying their products, and looking for it in the store.
Do you see a pattern here? This is relationship marketing, getting to know them, like them, and trust them. The same idea applies to your coaching.
How do we do this?
Some key points are that you must find an entry point that is low risk, low cost, and then lead them step by step through the getting to know you, like you, and trust you process. Start with a freebie. Give them something where they get a chance to “take a taste”. If they go “Wow, this stuff is fantastic” you know you’ve got them started into what I call your marketing funnel.
Imagine a funnel as a big wide-mouthed funnel, wider at the top and narrows down as you move down the funnel. You stuff people into the top as they “take a taste” and move them step by step down further into the funnel. Each step is bigger, more valuable (but does cost more, which means higher perceived risk), until you get them to your final product or service (highest value, highest cost, highest risk, but because they liked what you had to offer.
Here are some ideas for coaching:
Offer a freebie, could be a seminar on how to grow a business fast, how to get more clients, something of value. Make it valuable enough to entice them, but short enough that it is “only a taste” of what could come later. Leave them with a sense of the value they received this time, and the value that is to come. Then give them an offer for the next step, it could be a low cost seminar, or it could be an e-book (probably something in the $39 to $99 range).
Other intermediate steps could be a teleconference, group coaching, mastermind groups, email coaching, something to let them experience more. Group settings are great. Some of the coaches I’ve coached through this process actually learn to make more at the intermediate lower cost steps than they do with the end result, one-on-one coaching.
One other hint, back to the grocery store and the marketing funnel. Once you get them down through the funnel once, don’t miss the next opportunity, getting them to try the “flavor of the month.” Start another funnel with another flavor. You just helped them down a funnel with one target in mind, next month offer them something else, another flavor. Because they now know you, like you, and trust you, the next sale will be even easier. Develop a series of different offerings and different marketing funnels.