If your sales have gotten stagnant or your growth has slowed down recently and you feel like you have hit a wall in your business, it may be time to give a boost to your sales strategy. Adding a high ticket sale item to your business model may be the perfect way to get you over that hump in sales and help you bring in more dedicated customers.
What are High-Ticket Services and Sales?
Many online businesses thrive on high-sales volume, or selling a lot of low-priced products and services. This method is popular because It keeps payments coming in and keeps the cash register ringing.
High ticket services and high-ticket sales items are products and services that are priced significantly higher and provide much greater value for the customer. An example of a low-ticket item is an ebook or a short course on sale for $10-$20. An example of a high ticket sale item is an extensive, 3-month coaching program for $1,500.
The former example is more self-driven and may include fewer features and outcomes. The all-inclusive coaching package is a high ticket service that will give customers a personalized experience that gets them to a defined outcome or goal.
Examples of High Ticket Sales
To provide a better idea of exactly what a high-ticket sale or service item is, here are a few tangible examples this type of item:
The Tesla Model 3
Just over 10 years ago, Tesla was a small company valued at just shy of $15 million. Today, Tesla is now worth a whopping $47.2 billion dollars. Just one of the many reasons that the company was able to see this kind of accelerated growth is their approach to pitching and selling their vehicles, specifically how they marketed the Tesla Model 3.
With the growing demand for electric vehicles and the popularity of the Tesla brand on the rise, Elon Musk and his marketing team optimized their funnel for selling their most affordable electric car, the Model 3. Their sales funnel included:
- Webinar registration for learning more about the vehicle and the green values of the company.
- Live webinar landing page for visualization of the vehicle and details on the design, features and benefits.
- Checkout page that asks for the sale after they have built the hype.
- A request for a $1,000 deposit to reserve a Model 3
All of these factors lead Tesla to generate over $14 billion in pre ordered vehicles.
Teaching and coaching others is an excellent way to monetize the skills that you have developed over the years of growing your business. High ticket sales for coaching or productive coaching is an excellent way to boost business.
After becoming a published, best-selling author and selling lower-priced ticket item courses to a massive audience on Udemy and Skillshare, Seth Godin decided to take his coaching business model in another direction. He created an intensive, four-week online altMBA program. It is an expensive (thousands of dollars per person), personalized group coaching program that is led by him. It takes students from point A to point B. It is exclusive and selective as well, as participants must go through an application process to get admitted to the program.
On the other end of the coaching spectrum is hard-working super-mom Nagina Abdullah, founder of masalabody.com. While working full-time and raising her children, she was able to lose over 40 pounds, which inspired her to start a part-time coaching business dedicated to helping busy women lose weight. After putting her story on social media, her blog and guest posting on websites in the health and fitness space, she gained enough traction to start closing clients for $5,000 personal coaching packages.
Why are High Ticket Sales Items Challenging to Sell?
High ticket sales items can be challenging to sell for a few key reasons:
- You need to have established expertise and/or credibility in your field.
- You need an existing audience or network to which to sell.
- The high price of the product or service can dissuade people from buying into it.
High-ticket sales items and services may have a lower close rate than low-ticket sales items, but each sale is worth hundreds or even thousands of times more. High ticket sales tend to require more legwork and time in warming up an audience and convincing them to buy your high-ticket product or service.
What you can do to Overcome the Challenges of High Ticket Sales?
There is no one perfect way to overcome the challenges of high ticket sales. But, there are some strategies you can implement to help you with the situation. Tesla used a webinar to pique awareness and interest for their Model 3. They followed up by asking for a significant deposit from customers to show they were committed to buying.
Godin and Abdullah, established credibility and built awareness in their fields. More importantly, they used an application or submission process that made their coaching programs exclusive.
Here are some pointers for how you can overcome the challenges of high-ticket sales:
1. Be exclusive
Focus on providing a ton of value to a few prospects, instead of giving little value to many. Scarcity increases perceived value and demand. If you only have a couple of coaching slots available or a limited amount of product, the value skyrockets and the demand goes way up.
2. Provide value on the front end
Give your audience or network something for free on the front end to show that you are the expert. It provides a lot of value without giving away all of your secrets and builds interest in your high-ticket sale item.
3. Pack your high ticket item with value
Let your audience and customers know what they are going to be getting and specifically lay out what they will be able to accomplish with your high ticket item.
And there you have it. Did you find this article helpful? Is it something you would like us to continue expanding upon? Did you have any questions? Let us know in the comments below, and of course feel free to follow us on Twitter and LinkedIn.
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