Hi, this is Darla LeDoux of Aligned Entrepreneurs, welcome to today’s lesson: Why to Charge a Premium. I’ve got to share something with you. I have some sunglasses. These are Maui Jim sunglasses. I’ll just try them on for you. I bought these this summer for my wedding where I knew I was going to be outside. I needed a pair of sunglasses to not clash with my dress. I shopped around a bit and I invested in these sunglasses. They were about $300 give or take. An investment. Okay, Maui Jims.
Now, let me show you the sunglasses that I bought when I was on my way hiking at Target. Wait, I’m sorry. I can’t find them because I lost them. For years, I used to buy cheap sunglasses. I was a cheap sunglass fanatic. I had to be a fanatic because I was always losing them. Has anybody had that experience? Then, the very first time I bought expensive sunglasses, everything changed. I never lost a single pair again. In fact, I still have some I probably should lose.
What does this have to do with your business? Is your business a pair of Target sunglasses or is your business Maui Jims? People don’t value things that are cheap or things that are free. People value what we invest in. You want to really think about how you are allowing people to value you by the way you price your services. Let’s imagine it’s the New Year and you create a New Year’s resolution, you’re going to start getting a regular massage. You want to get a massage at least once a week. So, you find your local massage therapist and you book your first appointment. That person charges $50 a session and you go ahead and book out your first month.
The first session, you show up and you are there, you’re on time, you’re ready to go. It’s awesome. Second week, you’re about 10 minutes late and you’re kind of stressed out and you’re feeling bad but you’re like, “Eh! In reality that’s less than $10. It’s okay.” Besides your massage therapist will probably go over anyway.Week 3, now you’ve developed a pattern. You’re 10 minutes late again. Uh oh! Now you’re totally slipping on your commitment. By week 4, you actually called and cancel. You don’t even make the appointment. All of a sudden, your commitment has gone downhill. Who gets this? Who’s had clients who have treated you and your services in that way?
Now, imagine a different scenario. You make your resolution and you’re talking with a very valued massage therapist and they really walk you through. What is it that you want to get from making this commitment? They help you to really name it and map out your goals. You look at the effect it will have on you, on your health, on your well-being, on the way you treat yourself, on the way you show up at work, the effect it will have on your kids, when mom’s less stressed, all of that. You get really clear why you’re committed.
That massage therapist sells you a package, it’s $2400 for three months of weekly massage and support toward your goal. After you really see the value of the reason you made that commitment, $2400 seems like a steal. That’s 4 times what massage therapist A had been charging. Guess what, you are 4 times more committed to showing up every single week and reaching your goal.
This is no different than the sunglass scenario. You teach people how to treat you. You are training your clients how they get to treat you. It starts with that very first conversation you have to sell them your services and with how you actually price your services.
If you’re not a premium , you’re a throwaway pair of sunglasses. I know that’s not who you are. I know that’s not who you are because you wouldn’t be watching this video if it were. This is Darla Ledoux and I encourage you next time you go to discount your services or set your prices that you actually stop to think, do I want to be that disposable service where they won’t even notice if they lose me or do I want to be that invaluable pair of Maui Jims?
Have a fantastic and profitable week. Let me know your thoughts and how I can service you in the comments below!