Choose one problem and create one incredible offer
SOLVE 1 PROBLEM WITH 1 PRODUCT OR SERVICE
The product or service a business offers only has value to customers if it provides a solution to a problem.
The value/amount you can charge for a product or service is determined by 5 criteria:
- Does it achieve their dream outcome for the customer, yes/no?
- If yes, its worth selling. If no, your business will fail, because no one will buy your product or service.
- What is the real likelihood it will achieve the dream outcome for the customer?
- If its a sure thing people will be willing to pay a higher price, than if its just a possibility…Example- using a doctor who has preformed 1000s of successful surgeries vs. a doctor who just graduated, and you are their first patent.
- How long does it take to achieve the dream outcome for the customer?
- The longer it takes the less people will pay for a product. Speed of delivery is a BIG factor in price/value of a product or service.
- How much effort and sacrifice will it take on the customer’s part to achieve the dream outcome?
- The more a person has to do or give up on their part to achieve the desired outcome, the less they will be willing to pay for the product or service… Example- gym membership and nutrition coaching vs liposuction or gastric bypass surgery
- Who is your target demographic for the product or service?
- The more niche your product or service, and the wealthier your demographic, the higher the price people will be willing to pay…. Example- composite roofing vs decorative/hand crafted copper roofing
Your product or service only has to meet the first criteria of achieving the dream outcome of a group of customers to be a viable option for a business. Pricing of that product or service is determined by the rest.
The more criteria above your product or service meets, to the customers preference, the higher the price you can justify charging. If you achieve the dream outcome of wealthy customers, in a niche market, 100% of the time, instantly, with no work or effort on their part(besides them paying for it)… then your product or service is invaluable, and you can charge whatever the highest bidder is willing to pay for it…like a piece of artwork.