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Big winners pay for so many experiments."
Since the offer is what attracts new customers, it is the lifeblood of your business. No offer? No business. No life. Bad offer? Negative profit. No business. Miserable life. Decent offer? No profit. Stagnating business. Stagnating life. Good offer? Some profit. Okay business. Okay life. Grand Slam Offer? Fantastic profit. Insane business. Freedom.
it is far better to have understood why you failed than to be ignorant of why you succeeded.
What’s more annoying, prospects savagely compare and belittle our services in favor of cheaper and crappier alternatives — with the cheapest one “winning.” This, of course, when “winning” means getting to work more for even less (sad face).
Typical models weren’t designed for profit maximization. They were designed by companies who have boatloads of funding and can operate at a loss for years. When these models are used in the real world, business owners just barely “get by.” They essentially “buy themselves a job” and work 100 hours a week to avoid working 40. Crappy trade. My guess is that if you’re anything like me, you signed up for something better.
We believe every person, every company, and every organism is either growing or dying. Maintenance is a myth.
sell your product based on VALUE not on PRICE.
Commoditized = Price Driven Purchases (race to the bottom) Differentiated = Value Driven Purchases (sell in a category of one with no comparison. Yes, market matters, which I will expound on in the next chapter)
It’s an offer you present to the marketplace that cannot be compared to any other product or service available, combining an attractive promotion, an unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers . . . forever removing the cash constraint on business growth.
Your Grand Slam Offer, however, forces a prospect to stop and think differently to assess the value of your differentiated product. Doing this establishes you as your own category, which means it’s too difficult to compare prices, which means you re-calibrate the prospect’s value-meter.
And that’s the problem with the old, commoditized way. They’re able to compare. Unless you switch to a Grand Slam Offer, your prices will keep getting beaten down. The business eventually dies, or the entrepreneur throws in the towel.
We want to make an offer that’s so different that you can skip the awkward explanation of why your product is different from everyone else’s (which, if they have to ask, then they are probably too ignorant to understand the explanation) and instead just have the offer do that work for you. That’s the Grand Slam Offer way.
In order to sell anything, you need demand. We are not trying to create demand. We are trying to channel it.
1) Massive Pain
They must not want, but desperately need, what I am offering.
The degree of the pain will be proportional to the price you will be able to charge (more on this in the Value Equation chapter). When they hear the solution to their pain, and inversely, what their life would look like without this pain, they should be drawn to your solution.
I have a saying I use to train sales teams “The pain is the pitch.” If you can articulate the pain a prospect is feeling accurately, they will almost always buy what you are offering. A prospect must have a painful problem for us to solve and charge money for our solution.
Purchasing Power
Make sure your targets have the money, or access to the amount of money, needed to buy your services at the prices you require to make it worth your time.
Easy to Target
Growing
There are three main markets that will always exist: Health, Wealth, and Relationships.
Getting people to buy is NOT the objective of a business. Making money
we are not trying to get the most customers. We are trying to make the most money.
why you need to charge a premium if you want to best serve your customers.
When you decrease your price, you . . . . . . Decrease your clients’ emotional investment since it didn’t cost them much . . . Decrease your clients’ perceived value of your service since it can’t be that good if it’s so cheap, or priced the same as everyone else . . . Decrease your clients results because they do not value your service and are not invested . . . Attract the worst clients who are never satisfied until your service is free . . . Destroy any margin you have left to be able to actually provide an exceptional experience, hire the best people, invest in your people, pamper your
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If you love your customers and your employees, please stop short-changing them when there is a better way.
When you raise your prices, you . . . . . . Increase your clients’ emotional investment . . . Increase your clients’ perceived value of your service . . . Increase your clients’ results because they value your service and are invested . . . Attract the best clients who are the easiest to satisfy and actually cost less to fulfill, and who are the most likely to actually receive and perceive the most relative value . . . Multiply your margin because you have money to invest in systems to create efficiency; smart people; improved customer experience; scale your business; and, most importantly of
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People want to buy expensive things. They just need a reason.
the goal is to be so much higher that a consumer thinks to themselves, “This is so much more expensive, there must be something entirely different going on here.”
First and foremost, charge a premium. It will allow you to do things no one else can to make your clients successful.
We were able to charge a premium because we provided more value than anyone else in the industry.
Profit is oxygen. It fuels the fire of growth.
yes, you should never charge more than your product is worth. But you should charge far more for your product and services than it costs to fulfill it.
What will I make? (Dream Outcome) How will I know it's going to happen? (Perceived Likelihood of Achievement) How long will it take? (Time Delay) What is expected of me? (Effort & Sacrifice)
make a promise. The harder, and more competitive, are the Time Delay and Effort & Sacrifice. The best companies in the world focus all their attention on the bottom side of the equation. Making things immediate, seamless, and effortless.
if you can reduce your prospects' true time delay to receiving value to zero (aka you realize your immediate dream outcome), and your effort and sacrifice is zero, you have an infinitely valuable product. If you accomplish this, you win the game.
The Grand Slam Offer only becomes valuable once the prospect perceives the increase in likelihood of achievement, perceives the decrease in time delay, and perceives the decrease in effort and sacrifice.
So it’s not about the money, it's about the status (the perceived increase or decrease in relative standing when compared to others socially or professionally). Talk in terms of things your prospect believes will increase their status, and you will have your prospects drooling.
So to increase value with all offers, we must communicate perceived likelihood of achievement through our messaging, proof, what we choose to include or exclude in our offer, and our guarantees
The thing people buy is the long-term value, aka their “dream outcome.” But the thing that makes them stay long enough to get it is the short-term experience. These are little milestones a prospect sees along the way that shows them they are on the right path.
Step #1: Identify Dream Outcome
Note: I wasn't selling my membership anymore. I wasn’t selling the plane flight. I was selling the vacation. When you are thinking about your dream outcome, it has to be them arriving at their destination and what they would like to experience.
Step #2: List Problems
This is the best news ever. The more problems you think of, the more problems you get to solve.
Step #3: Solutions List
being said, if this is your first Grand Slam Offer, it’s important to over-deliver like crazy. Maybe flying out isn’t such a bad idea in the beginning. Make some sales, then think about how to make it easier for your clients. You want them to think to themselves, “I get all this, for only that?” In essence, you want them to perceive tremendous value.
“Create flow. Monetize flow. Then add friction.” This means I generate demand first. Then, with my offer, I get them to say yes. Once I have people saying yes, then, and only then, will I add friction in my marketing, or decide to offer less for the same price.
Step #4 Create Your Solutions Delivery Vehicles (“The How”)
