One of the great “natural laws” of business that must be understood and respected is that premium prices attract premium clients and low prices attract low quality clients.
If you really think about it, this dynamic applies to almost every consumer and business purchase, from automobiles, to dining options, to business and consulting programs and services.
Your best, most qualified potential clients are actively repelled by low prices, and are attracted to high prices.
Think that you should offer “competitive pricing” and discounts in order to bring on new clients? Well, I can personally guarantee you that you're leaving a ton of money on the table and repelling your best clients using that strategy.
Your best clients want value. That's it. They want an incredibly transformative outcome and they know that incredible outcomes and transformations are not “cheap” or “discounted.”
If they see your low priced or discounted option, they will run from it as they'll immediately recognize that you can't provide the incredible value they're looking for at that price point.
High prices = High value, and this is how sophisticated buyers (your best potential clients) view the world.
Low prices = Low value, and this is just simply the truth in the coaching and consulting industry, as it is in life.
Think about it. How many low priced, ebooks, systems, memberships, coaching programs, etc. have you purchased that have really delivered the value you were looking for?
The answer for me is 0, and in my early days I used to consume these type of offerings all the time.
High end, premium clients want the best, and they know from experience that the best is not cheap or discounted.
High prices also lead to high levels of engagement and focus. Low prices lead to low levels of engagement and very little focus.
When a new client enrolls in your program at a premium price point, they show up ready to work hard without excuses and without delay. They are fully accountable for their success and are craving the value you offer.
When a new client enrolls in your program or offering at a low or discounted price point, they show up late and ready to make excuses. They show up not ready to work hard, and they will be 100% ready to blame you when things don't work out for them.
Truly understanding and embracing these concepts in your business, is the quickest way to achieve true success and freedom in your business.
When you bring on a new client at a premium price point, and deliver incredible value to that client, there is no better feeling in the world.
When you bring on a new client at a low or discounted price point, there is no worse feeling in the world.
Summary: Premium clients are attracted to comprehensive, value driven programs at premium prices. Your best clients are actively repelled by low priced programs. Premium clients are a joy to work with, are fully accountable for their own successes, and come ready to get incredible value from your programs.
- Create a high value, premium program in your business that delivers an incredible outcome to your client.
- Price that program to reflect the incredible value and transformation that you offer.
- Enroll premium, motivated clients into your program and repel the clients looking for short cuts, low prices and quick fixes.
- Build the business of your dreams, reduce the overwhelm in your business, and work with happy clients who want to work with you.