- April 4, 2018 -
You know you're getting old when you and your buddies talk (often) about your physical ailments...
Shoot me if I ever start heading in that direction lol
In fact, I tend to avoid doctors and dentists for the most part. Not saying that's smart. Just sayin'.
Luckily I have good teeth 🙂
So when I went to the dentist recently and found out I had a couple of cavities and needed a crown, I thought "Sh*t. I don't have time for this."
...which my dentist mistook the vibes I must have been giving off as a money pain point.
He probably assumed it was either a case of not enough insurance benefits or cash to fix all three issues.
And the conversation went like this:
"Art, this one cavity really needs to be taken care of right away. So let’s do that one right away and then schedule the smaller cavity. We’ll put a "watch" on the tooth that is going to need a crown for now.
If anything changes before your next cleaning, schedule an appointment so it can be taken care of before it gets much worse."
Did you catch what he did?
He shifted the conversation away from pushing me into a corner...to working with me on a scope and a plan.
As entrepreneurs, sometimes our job of running our businesses can be pretty tough.
And often (I admit I can have a thick skull at times) we made it a lot HARDER than it really is or needs to be.
Which is why I'm a big believer in modeling other industries.
Like the conversation my dentist had with me.
For decades, entrepreneurs have enjoyed incredible success with the good-better-best pricing model...offering consumers options from basic to premium to deluxe.
No doubt you've seen this tiered pricing strategy everywhere: from airline tickets to Honda CR-V models to pork chops.
Coach...Premium Economy...Business
LX...EX...EX-L
Thin Cut...Thick Cut...Organic Pasture Raised
The idea is to give customers a choice and a basis for comparison, but not a choice overload – not a big old laundry list.
It works beautifully for coaches: Gold - Silver - Bronze packages.
Here’s how it usually works: customers on a tight budget can choose a bare-bones “good” model...while high rollers who want it all can opt for the “best” option, usually a souped-up version of the “good” product.
And then right in the middle is “better.”
Not too big, not too small. Just right.
Good-better-best pricing is popular because it works. Customers appreciate choices that show them what is available in the next higher package.
Sellers appreciate the additional sales revenue!
The trouble with using the “Good, Better, Best” model to define your product offering is that it doesn’t always reflect who your customers and users really are.
Especially if your business model hovers in that custom service stratosphere.
Pricing may not be the primary criteria your prospects use in making a decision...like my little trip to the dentist.
Instead of catering your product line to meet the price range needs of your retailer, try tailoring your product line to your customers.
Take the time to understand who your customer segments are and define your product range based on the needs of each segment.
What does the product or service mean to them?
How does it fit into their life?
And how should it be designed and priced to make sure they will buy it and love it?
You can very effectively shift the conversations you have with your prospective clients to priorities they want addressed that are within their budget.
Always start with the "fastest to cash" results for them. That should be priority #1.
Which cavity needs filled immediately?
If you need guidance on what "fastest to cash" looks like for you, then set up a free consult with us.
Have a good one!
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