Avoid Price Resistance by Focusing on ROI

Here’s your weekly strategy tip for getting more clients, making more money, scaling your business and really just multiplying your presence and your income and sharing your – as I call it – sharing your brownies in a big way.

I want to talk to you today about price resistance, especially if people experience price resistance from their prospects at all levels, but what I’ve seen recently is when you have increased your prices and upped your rates, there is often a big resistance with clients. The minute that you raise your prices, something happens and people have sometimes a hard time justifying paying “that much.”

I want to talk you through that a little bit to give you some things to think when you raise your own rates or when a prospect says, “Oh, you know, that’s a lot more money tha
I thought it would be.” The first thing is you have to understand that there is a rationale to everything you do, and you must explain to your prospect, but even before you explain it to your prospect, you really have to understand that you must believe in personal investments.

I believe in personal investment. This is why my husband and I each work with three different mentors and mastermind groups at the same time. Why do we do that? Because when we work on our marketing, our own mindset, we can then multiply our business. So, when you believe that and you do that for yourself, get yourself working with a mentor, or get yourself in a high level mastermind group with peers that stretch and pull you into your future – when you believe that and you live that, you begin to have the words to explain it to your own prospects when they are experiencing price resistance. So, you must live it yourself. If you want to be able to receive high level rates, be paid well, you must invest in yourself as well. Does that make sense? Otherwise, you feel like a fraud and you would be out of integrity.

The second thing is you need to then have those words and the rationale to talk with your clients about ROI – Return on Investment. Whenever I’m speaking to a client, we just did this yesterday speaking to a perspective client, we focus not on what it will cost, but more on what the return on investment will be. Clients usually see – even though they’re yearlong programs, they usually see all their money come back from their investment within the first two or three months. That’s just something we see very often.

Then, on top of that, they make so much more. So, maybe they make three times what they invested, four times, sometimes ten times what they invested, and that’s what you want to share with your clients is what the return on investment will be.

Now, perhaps you don’t work with clients. Perhaps you’re in nutrition and it’s not money that people get back, but it is health. It is reducing a chronic illness. It is having more energy. That is what you focus on, what the return on the investment will be and how their life will be different, and that’s one of the things that closes a sale is that you paint the picture of what they will receive as a result of working with you, and then you ask them, “How will that make a difference in your life?”

Focusing on that, and focusing on the fact that this is just a way of getting money at a discount. I give you one dollar. You give me back ten. The prospect gives you one dollar, and you give them back ten. That’s money at a discount. They will invest in that. So, the bottom line in today’s strategy is to really look at positioning what you offer in terms of return on investment. How can you language your marketing and language how you speak to people in a way that focuses on return on investment? Then, they will pay you, happily pay you with future money that they will receive from working with you. Does that make sense?