Being the only male Blake in my family who actually has hair puts me in the somewhat enviable position of requiring a haircut pretty regularly
And to this end, I have happily paid from $12 up to about $60 for pretty much the same OUTCOME each time.
So what’s the difference between a $12 dollar hair cut and a $60 haircut
Well, quite frankly…not much
Is there a 400% difference in the skill of the hairdresser ? no
Is there a 400% difference in the scissors that they use ? no
So how can I (or anyone else for that matter) justify paying 400% more for pretty much the same outcome ?
Good question- because as it turns out you can apply this analogy to almost ANY business.
And THIS is one of the FIRST things I do with a client when we start working together
So getting back to the hairdressing example…
The answer is that it’s a number of things
Ok the place where I have paid $60 have a process they take you through which adds value to the PROCESS and the EXPERIENCE
let me list a few of them…
The salon is well fitted out immaculately clean and smells good
The staff are well chosen, attractive, well presented and are ENTHUSIASTIC
They give you a 3 minute massage and incorporate aroma therapy into it
They give you a proper coffee (not instant) with a nice biscuit to go with it
They trim your eye brows and your ear hair
Overall it’s a relaxing and pleasant experience
So here’s another question for you ?
Does it cost 400% more for all of those things to be incorporated into the haircut experience ?
Absolutely not !
It’s the little things they have included in the service, the process and the experience that justify the higher price.
Ok next question - do I go there EVERY time I need a haircut ?
No - which in my opinion is business they are losing
I could easily think of 3 ideas right now they could do in my relationship with them that would have high perceived value but low cost to them that they could do to improve things even more so that EVERY time I need my hair cut I go back there
You see, 20% of your buyers will purchase a PREMIUM version of your product or service but ONLY IF you offer it.
In my experience, almost ALL BUSINESSES can add something to their product or service in the form of a package that will…
- Enhance and compliment what they sell
- Allow them to better serve their clients
- Allow them to increase their profit and dollars per sale
AND do it in a way that their customers are happily pay the new fees
So your question now is…
What could you add that would take price comparison out of the equation and add massive VALUE INTO the equation and allow you to skyrocket your sales and your profit EVEN more ?