I was at an event a while back and the speaker pitched a product at the end of the talk.
The pitch went like this…
“You’ll get this….
And a little of this…
And access to this…
You get all this which is valued at $1,250 for only $147 if you order today.”
I’ve been making efforts to understand this approach…called ‘value stacking.’ To be fair I do not have expert knowledge in this area. But, I will tell you that my initial response when I see anything like this is ‘Hello…Bullshit.’
Marketers use value stacking and they play on false scarcity to get you to open your wallets, swipe credit cards, break piggy banks and John Hancock checks. And, it works. That’s why they do it.
To me it feels inauthentic. It feels slimy. It doesn’t sit right with me which is why I don’t do it.
But, my point today is not to argue about these techniques. My point today is about how to determine the value of something for yourself.
Value is simply what something is worth to you.
How much is your time worth? I pay Travis Brown to handle the technical stuff on The Strongpreneur Podcast so I don’t spend dozens of hours farting around with things I don’t totally understand nor do I need to.
How much is a new client worth to you? Not only in money, but also in happiness. I know one entrepreneur who does Facebook advertising for people. He has a client who pays him $1500 a month to manage the ads. His client pays less than a dollar per lead and the product he sells is over $200. The $1500 per month is a drop in the bucket for that client.
What is your health worth to you? Steve Bradford is a personal trainer and he’s not cheap. Some of his clients come to him and can’t move very well. He increases their strength and mobility so they can get on the floor and play with the grandkids. What’s that worth? Ask those clients and they’ll tell you that whatever Steve is charging them is a bargain based on what they get in return.
A few years ago I hired the Original Ebook Coach, Ellen Violette to coach me on how to be a better writer and sell ebooks. I needed to understand the game and she was the one to help me. I paid her a few thousand dollars and did absolutely nothing she told me to do. I could’ve easily said there was no value in that (not her fault, mine). Even though I didn’t do what needed to be done, on our last call she asked me a question. That question helped me get absolute clarity about what I needed to do with MOTOR. Since then my business has more than tripled. What was that experience worth? To me it was priceless.
I coached a business owner who was making a small profit and pulling his hair out. He was stressed and couldn’t see a way to make his business stronger. He paid me 5k. Within a month he raised his gross profit by more than 20% which in real dollars was about $15k per month. He spent 5k to make about 180k. He saw value in it.
I also work with several pond contractors. They install amazing backyard water gardens for people. The sights and sounds of these things are amazing. These ponds are therapeutic for some. They provide a way for people to relax and destress. These water gardens provide a place for the family to gather and the kids to explore. If those things are important to someone..if they see value in creating those memories, then they see $20k or more as a drop in the bucket.
If you’re an entrepreneur that means you provide a service or product that meets a need.
If you’re a coach you might help people turn their lives or businesses around. I’ve found that whether I charge $500 or $5k it’s not worth a thing unless someone does something with it. I can’t help you if you don’t see value in it and help yourself.
If you’re a contractor you may be doing work that will provide your clients with a place to build unity in their family and make their lives a little easier. Don’t take money from people that don’t see value in what you do because to them you’ll just be too expensive.
Hey, personal trainer…don’t take the money from someone who views what you can do for them as just an optional thing or an expensive luxury. Work with people who see you as a crucial part to the plans they have for their lives and will do the work.
Value is a personal thing.
Make an effort to identify your ideal client. Know exactly what they value and then price your time, service or product accordingly without any games. Remember, people always find money for the things that they value.
PS- I would’ve paid the $1250 or more for what was being given. The $147 made me feel it wasn’t that good.