How a value ladder will help you to earn more from clients.
Why you NEED to implement a Value Ladder into your Business!
Even if you think a ladder is not an option for your business you need to find a way to implement the ‘value and product ladder’ into your business.
A Value Ladder works for products and service businesses.
Whether you’re selling products or services or your business is offline or online, No matter the type of business or industry you operate in, you can apply the value ladder concept and successfully find additional ways to serve your clients and capitalise on the extra earning potential.
This is a super important concept that will help you:
- help more people,
- boost business and
- make more money!
Even if you have heard about the ‘value ladder’ before, I challenge you to relook at it and see how you can implement these concepts into YOUR business!
What is the Value Ladder
The value ladder is essentially a method of mapping out your product and service offering visually in ascending order of value and price that will be presented to your clients as a low barrier to entry that escalates as they journey with you.
For clients sitting on the fence
There are a number of steps we need to go through in order to identify your value ladder based on your core product and services. The basis of the value ladder is to help clients that are sitting on the fence to make small low-risk decisions and investments up front which will help them convince themselves that they want the class-A product or service from you.
The value ladder may become complicated if you sell a large variety of products so I suggest you choose 1 item so that we can unpack the concepts of the value ladder and then choose the next product or service to slot into your value ladder system.
The value ladder is based on the concept of sales funnels. Now, these could be online or offline funnels depending on your product or service. It could also be a combination of online and offline offerings throughout your value ladder.
- Step 1 is choosing your core product or service.
For the sake of an example, lets say you sell widgets.
And let’s say that your widget is valued at R1000
A new client walks into your business (physically or online) and requests information about the widget, you give them run down highlighting the benefits and how this product will change their world and improve their life…
And even though you have done a great job promoting the widget they are not yet sure and ask that dreaded question…
How much is it…?
You tell them it is R1000 and they almost fall over backwards…
This is where the value of the ladder comes into play.
You know, based on your discussion that they really need your widget and that R1000 is out of reach until they convince themselves that this is the way to go…
To help them make an informed purchase decision you give them the application manual to the widget free of charge.
They take it home and a week later they are in front of you again telling you how much they want the widget but R1000 is still too steep.
So, you offer them a quarter-sized widget to try out. It is not free but it costs R250. It delivers all the benefits of the full-sized widget but just a smaller size.
They take it… You made a sale… Game on…
A week later they are telling you that they seriously need the full widget. They could buy the quarter widget but they may be missing out on the benefit of buying the full version… Now you tell them that there is a half size widget available with all the bells and whistles of the full size for R500…They are convinced and pull out their credit card … Again, you made a sale…
2 weeks later they are back but this time they buy the full version… You score again…
Once they buy you tell them about the “done for you” version of the full-size widget for R1200, by now they are raving fans and buy almost immediately.
Let’s do the maths…
- Quarter widget sale R250
- Half Widget Sale R500
- Full-size widget sale R1000
- Done for you version R1200
Doubled Your Value and Income
So from them not being too sure when they first met you, they were happy to buy the tester version of the product to becoming raving fans buying everything you have to offer and you pocket R2950 instead of the original asking price of R1000. Minimal effort on your behalf and you have almost doubled the value of this customer.
I’m sure you get the concept.
Here is an online example of the value ladder:
- FREE VIDEO SERIES: R0
- 10 DAY GUIDE: R120
- VIDEO PROGRAM: R97 per month
- 30 DAY COACHING PROGRAM: R497 per month
- 3 MONTH VIP TRANSFORMATION: R997per month
- VIP FAST TRACK PROGRAM: R1997per month
You get the picture…
Breaking down your offer into low-risk decisions and investments up front will help your customer convince themselves that they want your A-class product. This is part of your customer’s journey through your sales funnel and up your value ladder.
If you want help with your value ladder and growing your business feel free to contact me using the form below. I will take you through our free marketing and sales assessment and show you the hidden marketing assets in your business that will help you grow.