You’re an expert at your craft. Your customers can’t just pluck what you do from a store shelf — and you shouldn’t pretend that they can.
One thing I see coaches, trainers, consultants (experts in general) get wrong is not understanding the difference between a commoditized service and a High-Value Offer (HVO).
Not understanding this will keep you broke. Allow me to explain…
A commoditized service competes on price.
A High-Value Offer competes on the value of the intended result in the life of the recipient.
For example: let’s say you’re an expert trainer who knows how to get your clients in incredible shape. You’ve been doing it for years and have the receipts.
You should NOT be competing with Gold’s and LA Fitness on price! I just checked — their rate for personal training is $60/hr! You’ll lose the price game and you don’t have the capacity to do the volume needed to make real money.
Your customers can’t just buy what you do from a store shelf — and you shouldn’t pretend that they can.
Let’s say your client’s #1 goal is to get six-pack abs by the end of summer.
Commoditized service example: selling a package of training. They show up, you bark at them for an hour. Hopefully it works. 20 sessions x $60 = $1,200.
Now, how would you turn that same knowledge and service into an HVO?
High-Value Offer example: instead of just trading time for dollars, take the same information you’re using to help them and show them the value by packaging it to a comprehensive nutrition, training and mindset program over 90 days.
Here are some specific ideas…
1.) Add supplemental digital materials like video and audio for them to use at home — workouts, mobility and maybe even meditations. That way the training and learning can continue, even after the program is over.
If you have a book, you should add that to the bundle, too.
(Hint: maybe write a book?)
Add it all to a branded membership backend where they can login any time. ($2,000 value)
2.) Set up daily accountability coaching so that they stay on track with their goals. Have them send pictures of their food at the end of the day and offer feedback — you can outsource this to an assistant trainer at some point. ($1,500 value)
3.) Create a small group of other clients who are trying to accomplish the same goals and set up weekly calls so that everyone can be encouraged to share wins, challenges and discoveries. ($1,000 value)
4.) Give them custom branded merch, training gear and high-quality organic supplements all targeted at getting them their abs / improving their health. ($500 value)
5.) Partner with a local health spa to get your clients a free pass for X number of sessions and let them try things like red light, massage, cryotherapy, hyperbaric chamber etc to aid in their recovery. ($500 value)
6.) Create recipe guides so that they know how to shop, what to buy and how to eat. ($250 value)
7.) Create a tracking system or a custom branded app for them so they can see how far they’ve come. ($250 value)
8.) Do a photoshoot after every training session so that they can see and feel the results. ($250 value)
The list goes on and on, but you get the point…
What was previously a $1,200 commoditized service is now a High-Value Offer (HVO) valued at $6,250.
Then, you can give them a nice discount and charge $4,500 — if they sign up by the end of the week.
Because you’re a generous god!
I’ve found that by learning to develop High-Value Offers, market them effectively and systemize everything..it actually attracts better customers into your business, reduces your stress significantly and increases profit big time…which allows you to give more energy to your clients, your team and yourself.
It’s kinda like a triple win.
Once you’ve justified charging your clients more because you’re delivering at a higher level, you can also justify spending much more to acquire a new customer. This is when the infinite game unlocks. As Dan Kennedy says, the business that can afford the most to acquire a customer wins!
The math makes sense to me.
$100,000 / month is…
20 customers at $5,000
10 customers at $10,000
4 customers at $25,000
2 clients at $50,000
1 client at $100,000
Now, go out there and create some value 🙂
Daniel “Mr. High Value” DiPiazza