Let's recap. In this previous post, we covered the main differences between the two major pricing models: Cost Plus and Value Pricing. It must be reiterated again, the first is a trading model, meaning we are trading hours (the performance) for dollars, and the latter focuses on the price paid for the value provided to the paying client.
There is a saying in finance, "Cash is a fact and everything else is an opinion."
This is the truest form of defining value. By getting the client to state a specific price for their wants, needs, and desires. By doing so, we've converted the intangible into a real value for the client. Now all we have to do is position our services to satisfy the ask.
There is a saying in finance, "Cash is a fact and everything else is an opinion."
This is the truest form of defining value. By getting the client to state a specific price for their wants, needs, and desires. By doing so, we've converted the intangible into a real value for the client. Now all we have to do is position our services to satisfy the ask.
This is the value proposition for mentalism.
Think of the value proposition as the value of a professional's position. We are that pro because we listen to our client, ask about the event, and why the need for entertainment. This leads to a conversation about how important is the success of the event and how selecting the right entertainment services impacts that outcome.
During the course of the conversation, we get to know our clients in a deeper way and they learn something as well. Odds are, they've never exactly expressed how meaningful is the outcome of the event.
At this point, we will be discussing all kinds of possibilities for the event, but we need to pull back the excitement and come back to them with a proposal. The proposal should list distinct packages that offer different price points with the valuable services we can offer the client.
While we are creating the proposal, we will be looking inward and finding more ways to serve our clients. Essentially, we will be redefining what we do and expanding our services. By basing our business on delivering value, we beat out the competition. Plus, we make more money, have more time, and are positively impacting our clients lives!
Once we've successfully closed a client after redefining our business, we can go back to this post here and start identifying other similar A-level clients. Reread this last sentence, it provides a key lesson. It is here that we start to develop a very specific ideal client type. We will know what this client values and more importantly how we can make a big positive impact on the clients needs.
Over time, our client list builds into similar A-level clients, the ones who can afford one of our packages. And gradually, we can drop off those clients who have no interest in the additional benefits of our services. Look inward and grow.
During the course of the conversation, we get to know our clients in a deeper way and they learn something as well. Odds are, they've never exactly expressed how meaningful is the outcome of the event.
At this point, we will be discussing all kinds of possibilities for the event, but we need to pull back the excitement and come back to them with a proposal. The proposal should list distinct packages that offer different price points with the valuable services we can offer the client.
While we are creating the proposal, we will be looking inward and finding more ways to serve our clients. Essentially, we will be redefining what we do and expanding our services. By basing our business on delivering value, we beat out the competition. Plus, we make more money, have more time, and are positively impacting our clients lives!
Once we've successfully closed a client after redefining our business, we can go back to this post here and start identifying other similar A-level clients. Reread this last sentence, it provides a key lesson. It is here that we start to develop a very specific ideal client type. We will know what this client values and more importantly how we can make a big positive impact on the clients needs.
Over time, our client list builds into similar A-level clients, the ones who can afford one of our packages. And gradually, we can drop off those clients who have no interest in the additional benefits of our services. Look inward and grow.
The 5 Steps to a Value Proposition
- Look inward and discover all the additional value added services you can offer.
- Carve out and target a profitable niche through identifying your ideal client type.
- Listen to your clients wants, needs, and desires.
- Establish the value of your services for all gigs — Big or small.
- Provide options with different price points on your proposal that satisfy #3.
Break free from the price grinders. These are clients that hammer you on price and rarely see the value of this approach. Plus you don't want them or their headache. If they refer you business, it's likely to be more low quality clients expecting the same low price point or worse! This type of client stalls and can even kill your business. Instead invest your time and effort cultivating A-level clients. Clients who invest in themselves or their events and want results. These clients will refer you other high quality clients.
Finally, it all starts with you and how you see yourself. Once you change how you see yourself, your clients will change how they see you. You're no longer an expense. You become the trusted partner that they invest in to deliver results for their event and you both build a mutually beneficial relationship.
Comment below and post your thoughts and questions. Do you do this approach already? how has it been working for you? let me know below.
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