The Costly Pitfall of Focusing on Lower Priced Offers: Mistake #2 Revealed

In my recent series, I’ve been shedding light on the common mistakes that service providers often make when selling their programs and services. 

Today, let’s dissect Mistake #2: Focusing on a lower priced offer.

It’s a scenario I encounter time and again—coaches, consultants, and service providers eagerly discussing their plans to launch lower priced programs to cater to those who can’t afford their high-end offers. However, I’m here to tell you that this approach could be a grave misstep.

Reason #1: The Impact on Time Management Quadrants

Launching a new offer isn’t just about creating something new—it affects all four crucial aspects of time management for entrepreneurs: Admin, Service Delivery, Sales, and Marketing. This diversion of time and resources towards a lower priced offer may seem logical, but it often requires a substantial volume of clients to be profitable. Unless you’re already raking in significant revenue from your high-end offer, this strategy might not make sense.

Instead, redirect your focus towards selling MORE of your highest-end offer or introducing an even HIGHER priced option.

Reason #2: The Difficulty in Hitting Revenue Goals

Let’s crunch some numbers. Say you aim to add $20K to your bottom line this month. If you introduce a $300 offer, you’ll need to convert 67 new clients. That translates to marketing to approximately 14,400 prospects—a daunting task, to say the least.

In contrast, a $10K high-end offer means you only need to convert 2 new clients this month. Trust me, converting 2 at $10K is far easier than 67 at $300.

Consider the size of your audience as well. If you don’t already have a substantial social media following or email database, building one takes time and resources. Introducing a new marketing campaign for a lower priced offer diverts focus from your main high-end offer—a costly distraction.

Instead, focus on fine-tuning your marketing to attract prospects willing to invest in premium offers. Quality over quantity is the key to success in this game.

So, as you navigate your sales strategy, remember to prioritize your highest-end offers and avoid the allure of chasing lower priced alternatives.

Stay tuned for more insights on maximizing your sales and revenue potential. Together, let’s steer clear of costly pitfalls and elevate our businesses to new heights.