There are SO MANY obvious reasons why selling high-priced products makes more sense than selling low-priced products:
- You need to make fewer sales to make more money
- You need to inventory less product
- You benefit from higher margins and therefore higher profit
- You process fewer transactions which means lower processing fees
- You ship fewer products, which means lower shipping and labor fees
Think about it for a minute: a Rolls-Royce dealership doesn’t need to sell as many automobiles as a Ford or Chevy dealership.
Because you need to sell more Fords and Chevy’s than you do Rolls to make a profit.
Here’s another example:
A consultant with 10 customers paying $10,000 a month retainers makes more money than one with 10 customers paying a thousand dollars a month…
…and he works less, too.
Let that “roll around” in your thoughts for a few minutes…
But here are a couple more reasons you may not have considered:
Reason #1. People who purchase high-priced products are far more likely to actually use those products and benefit from them.
As strange as it may seem, people who pay for a $1,000 coaching session, or a $10,000 monthly retainer, are more likely to implement the advice they receive from their consultant than they would if they were handed a $19 ebook.
People just don’t value “cheap” advice… nor do they implement it. No matter how good it is.
The higher implementation rate of high priced products means:
1.) More success stories,
2.) More glowing testimonials,
3.) More sales for you.
It’s a perpetual profit machine!
Reason #2. People who purchase high-priced products complain less than people who purchase high priced products.
Think about it for a second: the “lottery ticket losers” you see in Facebook groups touting all that free crap, no money down, and make a gazillion dollars overnight, are the first ones to scream scam because they were expecting something for nothing.
You’d think the more money you spend on a product, the more discerning and picky you’d be. But that’s not the case. Most people will buy a load of crap because it’s either free or cheap, but they’ll be the first ones to complain because it didn’t magically turn them into a millionaire overnight.
Higher pricing attracts better customers. It also reduces the “hand holding” because they’re lower-maintenance (and probably better educated)… and tech savvy.
“Big Ticket” customers have better credit, have fewer complaints, have fewer returns, and they’re not a pain in the butt.
Price shoppers and penny pinchers are a pain in the ass on so many levels…
Something to think about.