How To Create Premium Service Offerings
Updated: Dec 19, 2021
Everyone has a fear of something. Entrepreneurs usually have a fear of pricing.
Let’s say you are a service based business….We often suffer from a fear of being priced too high, and therefore losing a sale.…So we resort to things like sales, discounts, and negotiations to make an extra buck. If discounts aren’t the way to making sales, what is?
The answer?
Find a way to get premium prices for your products and services without losing a customer.
Take a few seconds to ponder these questions before you scroll down and read the rest of the article.
What are some of the things that you do with all of your clients again and again and again?
What do you find yourself talking about over and over that can potentially be turned into a group offer or a course or some kind of class that you can deliver on-to-many as opposed to one-to-one?
How can you make your one-on-one services your premium offer?
Here are our suggestions:
Create Pricing Tiers Based on Client Segments
Let’s say you are a service based business….
Instead of charging by the hour, you might create tiered packages for small businesses, mid-sized businesses, and large enterprises.
When you’re creating your service based packages, you typically want to have three offers.
A little piece
A medium piece
And a large piece
$ – The little piece is some way that people can work with you that is a taste of what it’s like to work with you in those higher capacities. At Koinonia Training and Consulting, our "little piece" is called a clarity consultation.
$$ – The medium bite is your signature offer. This is the thing that you want most people to buy and that you’ll sell again and again. This could be a group program, or it could be a middle of the road kind of coaching program, or a premium online course. There are lots of ways to think about this.
Our clarity consultations are our transition into our coaching packages and our one-time full consultations. Move past your self-doubt. Make the changes you’ve been longing to make. Start taking control of the life you live. Whether you’re longing for a more meaningful career, you're ready to create a new service or enhance your service offerings, our session together will give you the opportunity to unlock a more fulfilling and purposeful life.
$$$ – The large bite is your premium service. This could be a done-for-you type service if you’re a service provider, or more of a white glove treatment, or a VIP offer with lots of one-on-one time.
Our VIP intensives are our premium service offering. A One Day Intensive is a premium service that includes a highly focused and tailored day of consulting and coaching. We will work closely to clarify your big goals and vision around your life and business. We collaborate to identify any stumbling blocks, mindset issues and insecurities, and map out of a plan of action to make your goals a reality. In other words, it’s strategy, healing, goals, action, accountability and personal and professional transformation all in one day.
The VIP intensive includes all meals. Lunch is provided off-site (on site options are also available) and included in the pricing. Refreshments will be available throughout the day (coffee, tea, etc.).
We will spend a full day together and dive deep into your specific challenges, desires, and goals. Every intensive is tailored for your specific needs. We will work until you achieve your desired outcome for the day or we don't go home (this is a joke)!
For entrepreneurs, this intensive will give you the chance to experience the laptop lifestyle in action. You will see clearly how it is possible to build a business aligned with who you are, serving your tribe and bringing your unique gift to the world all the while working from anywhere. You’ll also see that you don’t need to spend forever to get there... well maybe just a few hours :).
2. Eliminate Frequent and Predictable Discounts
While it’s tempting to discount your products or services to increase your client base, doing so can bring big risk – and kill your chances of commanding premium prices.
Look at J.C. Penney…
“When Johnson took over J.C. Penney, 50 to 70 percent of all sales were at discounted prices. Here’s how it works: you start off pricing something at $100, but you end up selling it at, say, $50. All the actual sales take place at 50 bucks.
The problems that high-low pricing cause are tremendous. Customers come into the store, they look at the new merchandise, and they look at the prices. They like the merchandise, but don’t like the price, and so they don’t buy. As a result, this new merchandise sits on the shelves. The first markdown takes place after six weeks, and only then does the merchandise begin to move.”
Yikes!
Best-selling author Laura Reis, founder of Reis & Reis, writes:
“Think about it. The effects of coupons, sales, and discounts are exactly the same as cocaine. The first time you get a discount card in the mail you are elated! Wow! 10% off, 20% off, 2-for-1! You might rush out to the store and take advantage of the offer. But next time you drive by that store you think, I’ll just wait and see if there are any more coupons coming. Next time you drive by that store you get mad since you forgot the coupon. Eventually you refuse to step into the store without a coupon.”
Also, understand that numerous studies prove people perceive their purchases as higher value when they pay more – so why cheapen what you offer?
3. Rebrand to Increase Perceived Value
In 2013, Birchbox – a subscription ecommerce company for beauty samples – overhauled its website and packaging for their premium rebranding campaign. The logo was updated to a simpler, more modern look, while an interior “gift” box was added to the packaging with color-coded tissue paper (based on items purchased).
Last year’s revenues reached an estimated $125 million.
Keep in mind: as a premium brand, you must also create an experience.
In the mid-1980s, Apple faced near bankruptcy before undergoing one of the most well known rebranding campaigns in business history. The iMac combined high performance with a new, sleek design that paved the way for what is now a collection premium products.
So, what experience can you work into your product or service? Could a rebranding effort bring you big benefits and premium prices?
Try one or two of the ideas shared here – or combine them all – and you’re almost certain to increase your average sales and overall profitability.
Dr. Dee Evans
CEO, Koinonia Training and Consulting
CEO, The Dee Evans Group
info@koinoniatrainingandconsulting.com
Dr. Dee Evans is an internationally recognized consultant and celebrity life coach. She has been awarded several leadership awards and she is a respected educator and Christian leader. She is the author of several books, which include: "God, I'm Disappointed, Procrastination: A Kingdom Perspective on the Theology of Work". Connect with Dr. Dee Evans by visiting the links below.
Koinonia Training and Consulting
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