SFR 49: Just Add Another 10%… – Stephen Larsen

SFR 49: Just Add Another 10%…

May 6th, 2017 anchorwave

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I HATE getting paid pennies for my expertise and you’re probably the same. The reality is, you can probably charge more without your dream customers batting an eye…


What’s going on everyone? This is Steve Larsen and you are listening to Sales Funnel Radio.

Welcome to Sales Funnel Radio, where you’ll learn marketing strategies to grow your online business using today’s best Internet sales funnels. And now, here’s your host, Steve Larsen.

What’s going on everyone? Hey, I’m super excited. I’m actually sitting here, I’m getting ready for my presentation at Local Client Takeover, LCT baby. It’s going to be awesome. It’s down in Vegas. It’s actually in a few days here and I’m excited for it. I always love preparing my presentations … sometimes.

It’s been a little bit challenging in the middle of this move and all the things going on here. But I always like it though, that’s for sure. I was just thinking, so they want me to talk about local funnels and how you can use sales funnels in a local business, which is awesome. That’s actually one of the first things that I ever did but it wasn’t using click funnels and I didn’t realize that I was using a funnel.

Does that make sense?

It’s when I was doing traffic generation for Paul Mitchell, we were driving traffic … What happened is they came to the college that I was going to and they came to the college and they were like, “Hey, we need these two guys. We need someone to help us please drive some traffic,” and that’s essentially what happened.

We were like, “Cool.” The teachers came and they saw that my buddy and I, Ben Wilson, I think he listens to this, shout out to you man. Ben Wilson and I, we’re doing all these crazy things in college and the professors knew about that so they recommended us.

We go and we start driving traffic for these guys and really quickly realized we could drive huge volumes of traffic but have none of it convert. We were certainly learning with other people’s money. But we had some success with that as well, though.

What we were doing is we were basically putting in ads out there that were saying things like, “Hey, come in and say this secret word and you’ll get a free tea tree scalp treatment,” or something like that. It’s Paul Mitchell hair company, which is funny because I’m totally losing my hair now. Anyway, it was really cool I’m excited to be able to go and give the presentation here so I thought that I would talk a little bit about price because that actually is one of the secrets.

So you guys know, if you have read the Extra Secrets book at all, if you’ve gone through Russell’s Perfect Webinar Secrets at all, you will know that one of the major parts of what we do for selling is actually called storyselling.

And what we do first is we go figure out the core false beliefs of our audience and we write them all out…

The whiteboard literally right next to me has this. So what I do is I write out all the false beliefs that I know that people at LCT are going to have about how they can use sales online funnels in local business. Does that make sense?

So I write down tons of them and I put them all out there. I wish I had these lists next to me, what they are.

But things like, “Well I’m a word of mouth business only. So of course that’s not going to work for me.” You know what I mean? And just start writing them all down.

So I’ve got things like, “I don’t want more business. I can’t handle it. There’s too much competition in my local market. There’s no way I could compete online.” Those are the types of things I put on there. “Ads are pricey so I’m not going to be able to do it.” Does that makes sense?

And I list out all the false beliefs. This is how I prepared my speech over at ABcom too.

Every time you guys use any type of communication or you guys talk to your customer at all do this. If you don’t have a list of the main beliefs … Now I’m just guessing.

The more accurate way is for you to get out there and do like a Ask Campaign and really dive deep and call people who bought, call people who didn’t buy and just get down there and start figuring out, in the weeds, what people are thinking when they hear about your product.

So I started doing that and I wrote down … Then what I do is I write down all of the counter … What’s my counter to that? Well, “Ads are pricey but honestly, you can have less clients anyway and then make more money” or “Ads are pricey but with a break even funnel, you really don’t need to pay for them.”

You’re just turning on an ads engine and maybe lose just a little bit of money but you’re getting tons and you’re getting basically free customers the rest of the time. That’s a counter. And saying that is cool but it’s not as effective as telling a story, where I get you in state and I start … This is all from Extra Secrets book, where I get you in state and I start teaching you. I start telling a story of somebody else who went through that.

“Oh, there was this guy once that, he was in … ” this certain business and does funnels now.

Okay, one of the first funnels I ever built for somebody else was for this water company and they were super awesome. I have mad respect for that guy. He’s built an incredible company and he wanted some more sales online so I ran an Ask Campaign to his existing list.

I got like 150 responses. I read through all of the responses and I figured out like, “Oh my gosh, did you guys know that your customer wants these things? Did you know that they struggle with these things? Did you know that they wish you did these things?”

And all we had to do then was create basically an E-com funnel selling their products online and it was practically a local business. He did a little traveling and speaking but it was most … Anyway, they made like 50 grand through that funnel in the next like … I don’t know … a couple day- … like a couple weeks.

It was probably like five weeks after it’s all said and done.

There was like 20 grand after the first few days and then leveled out to about 50 grand. Anyway, it was a good amount of money though, right? But I would dive more deep into the story and I would tell you guys my struggles with it and how I didn’t think it would work and things that I was talking about with the boss man.

Anyway I would dive into it deep and that would help you guys realize that what I’m saying is true because I’m telling story with it. I’m not just saying the fact, does that make sense? So that’s what I do then. So first, I’ve got all the false beliefs then my counter but then I also write a story that relates to that to help them show that their belief is false.

And then what I do is I go find the top three things, again, straight From Extra Secrets I go.

Find the top three false beliefs that have to do with the vehicle that I’m going to suggest, the internal belief that they have and the external belief that they have.

And those are my three secrets. So the title of this presentation for LCT, which I’m super stoked about, is going to be, How to Get Local Clients and Beat the Big Brands at Their Own Game.

I think it’s a pretty sweet … Anyway, it’s behind the scenes of simple local client acquisition funnels. And what I’m going to go do though is I’m going to show them, basically, all these cool funnels that you can use to get clients in but that’s a never-ending topic.

There’s basically an infinite amount of ways you could probably do it, to be honest. So what I thought is it’s more about how they’re going to structure their business as a whole. What’s their core offer?

What’s a cool front end they could use to fuel that core offer? And then what’s a back end product? So I’m essentially going to teach the three core funnels as I go down there and I’m excited to do that because … I’ll just tell you then. It’s about 84 slides. I’m a little nervous because last one was like 70 slides and I ended with like three minutes left, so I got to talk faster on this one. Anyway, so the first thing I’m going to show them is how to use low-end products to pay for all of your customer acquisition. Crazy cool, right?

Especially for a local funnel. There’s tons of local businesses that do that. They may not know they are using a funnel but that’s what they’re doing. Number two. I’m going to show them how to get treatment clients to abandon the big brands and cling to them instead.

What I’m going to do is I’m going to teach them about offer structure and how most people do not create an offer. They just have a product or a service. But that doesn’t mean you have an offer. Does that make sense? Then number three. I’m going to show them how to 2X their revenues from half the clients and I’m going to go show some cool stories of that using high-ticket application funnels in the back end.

Or high-ticket supplement funnels or something like that. If you read Russell’s book, DotCom Secrets, in there he talked about a cool chiropractor. He basically created a supplement funnel in the backend that was like a high-ticket $2,000-dollar package to help cure something that most people who came in and had. Does that make sense?

So anyway, so that’s what I’m going to do. What I wanted to do though for this, real quick here, this will probably be a little shorter episode. My episodes lately been a little bit long. Sorry about that. I had a cool comment.

Someone’s like, “I love that your episodes are like 15 minutes. Any longer and they’d be too long,” but … I don’t know … I feel like as long as I’m spitting value then whatever. So what I’m going to do though is I want to show you guys some of the cool ways you guys can charge more in your business. Right off the bat, I think this is from Joe Polish. Joe polish says, “How you price your products is determined in your ability to sell them.”

Does that make sense? This is for the few people that I’ve told, “Hey, charge five grand in the back, have them come out to you for two days,” or charge $2000 for a consultation and they’re immediately fearful.

“What? $2000?” “What? $5000?” And the reason they do that and the reason they have this knee-jerk reaction experience whenever I say that is because they wouldn’t pay $2000, or they wouldn’t pay $5000. Guys it doesn’t matter.

You’re not your target market. You’re not the one filling your own wallet. What you need to be concerned about is whether or not you can sell that. Does that makes sense? You can sell anything but how are you going to sell that? Do you have testimonials? Do you have success stories? Do you have things in the back that other people can look at for social proof, for creating community.

Does that make sense? You’ve got to make it … Anything you got to sell … Anyway, I just love that comment; “How you price your products is determined in your ability to sell them.” It’s fascinating. Very, very cool.

So he goes on to talk about that … What it is, I wrote down a whole bunch of things about pricing and how to charge more and there’s a really cold interesting point here at the end that I want to actually say to you guys but let me get through the rest of the list here that I wrote. He says, “Premium prices equals different expectations.” So if you’re going to go charge something high-ticket, people are going to expect more.

They’re going to expect more from you. It’s a little bit more of your time. Some massive piece of value, obviously that makes sense to you. That’s obviously not something that you’re probably going like, “We’ll know. Duh.” That makes sense, why wouldn’t … But honestly, all that means sometimes is just change up the delivery of your product.

Change up how people receive it, meaning, well what I did in a front end funnel that I created was I … instead of having like this course come in a series of YouTube videos, all I did was I put it on a CD and made it a “Free plus shipping” CD. I changed up the delivery and by seriously changing up the delivery, you can put yourself in a momentary blue ocean and let me charge more money, let people come to me.

It let people be used to the idea that they should come in and pay money because I’m different…

Does that make sense?…

So change up the modality that you actually put people out there so … And that lets you charge more money. People expect that there is zero delivery problems.

They expect that there is this … If you pay high premium prices, they expect your polish, your fulfillment to be on point. Does that make sense?

And there’s something that I’ve wanted to launch for quite a while now, probably about six months. I’ve known exactly what the product is, I’ve tested it, I know it will sell like hot cakes, I have a feeling it’s going to make a $1 million if I ever get to launching the thing. But the reason I haven’t done yet is because I don’t have a fulfillment side set up yet.

 I’m just being totally open and vulnerable with you guys. Guess what? Steve Larsen is not perfect. I’m looking for a person to help me on a specific piece. It’s got to be a certain type of person, someone who’s excited on … Anyway, and that’s why. And that’s fine.

I want to make sure that I can charge premium prices, that it’s totally automated, because I don’t have time to be doing my own product and so this is just out of fun in my net time, my no extra time, that Tony Robbins talks about.

That’s the reason I haven’t done it yet. So if you want to charge premium prices he says, “You got to get rid of delivery problems and ramp your service.” Then you can charge more money. Very easy to do that. What’s one of the major pieces people want with click funnels? They want customer service.

And they’re willing to pay for it. We have people who pay extra amounts to get more premium support, more priority support…

All right this was the piece that I really, really like. You guys, sometimes the key to charging more money is to just put more money on your asking sheet. Okay, does that makes sense? Just ask for more money. Just ask for more. If you have serious inhibitions on that, then most of the time it’s your own inhibitions.

A lot of time, like this is going to be such a stupid example, but when I was a kid man we’d go by those junior bacon cheeseburgers at at Wendy’s like hotcakes man. We bought those things like crazy.

We’d ride our bike out there and we loved it because, I don’t know why, it was just … I was a freshman in high school. It was just cool to just leave, to go over to the place we’d ride our bikes all over the place and I was a super outdoorsy kid to be honest. I rode a long board, I skied for years.

Anyways, I was really, really outdoorsy. I went on a three-week backpacking trip once, that was super cool. Anyway, but I remember one day we were biking out there and it was a lot of fun, it was just a super fun adventure kind of thing but the price went up for them and I said, “Darn it.” I still bought it.

Does that make sense? And they went up again, I was like, “Darn it,” and I still bought.

That’s a stupid example but do you guys get what I’m saying? Half the time your customers are going to be like, “Eh, whatever.” Does that make sense? So this is a cool point that, I think it was Joe Polish that he made. He said, “Most all companies can raise their prices by 10%, afford to lose up to 40%, which is unlikely, and still maintain net profits.”

That make sense?…

More money with less clients doesn’t hurt if they even leave. Almost all have 80% increase in bottom-line by increasing just by 10%. Does tat make sense? If you increase your prices by 10%, worst-case scenario, let’s say 40% of your clients end up leaving, just with a 10% raise, but you’re going to get this massive increase in bottom-line revenue because most of your costs are already covered. Does that make sense?

All you’re doing is it is you’re just literally adding straight to your bottom line because the cost of goods sold, your COGS, your cost of goods sold has already Artie been covered with the other money already. You’re just adding 10% of even more cream on for you. That’s really all it is. That make sense? So just go add more money on.

Go charge more money and it’s actually a lot easier.

Honestly what I did is … I think it was Pat Flynn I learned this from, I reference a lot of people as you guys can tell. It’s because I know that I’m not amazing on my own and neither are you and you should know that. We’re all standing on the shoulders of giants.

Anyway, I think it was Pat Flynn that taught … He was selling something, I can’t remember what it is. I think it was an e-book but he said, “Hey, the reason I’m selling it for the type of price that I am, is literally because if I sell it any cheaper people will ask why it’s so cheap.”

Sometimes cheap hurts you…

Sometime cheap is actually a very, very big hindrance and the reason why … Let’s say you go to a car dealer and you go to this car dealer and you see this beautiful Porsche. Now let’s say … excuse me … You could tell this is live radio because I’m not editing that out.

Anyway, let’s say you go see this amazing car and it’s actually on a new car lot. And you go and you pull it up and you saved up quite a bit of money. Let’s say you’ve saved up for quite some time. You’ve had your eye on this car, you know this car, you know the exact amount of liters that the engine is, you know exact … You know the car before you bought it.

You have been dreaming about this and you get up there and the guy’s like, “Dude, this Porsche … $5000.” You’d be like, “What?” What would be the first thing that you ask? You would probably ask, “Well, what’s wrong with it?”

You’ll probably ask, “Well how come … $5,000? Man, I saved up way more. I’m ready to lay down cash on this thing.” It’s almost a pride thing by that point and the fact that you’re not putting the money down is hurting your pride because buying is definitely a pride experience.

I’m not saying proud as in a bad thing but there’s some pride to buying. People like to buy and people like to know that what they bought is cool. Does that make sense?

And Pat, the one who was making the point that, “Hey, look … If you charge prices that are so low you actually will devalue something that could be very valuable.” People want to pay money and get good services for things. If they don’t, I ask you to change your customer.

So that’s the reason why…

That’s the reason why … When I was building funnels for other people I raised from 10 grand to 20 grand because I knew that my funnel was going to make easily that amount in a month and it’d be pure profit for them afterwards. Does that make sense? Just raise your price. Just charge more money. And you’ll find that people actually sometimes will respect you more for that. It shows that increase in status, especially if you’re a service-based business. It’s a lot easier to charge money.

Just charge more money. If you’re a product-based business that’s fine also.

Charge more money…

If you’ve … What’s one of the lines Russel always tells me? I think it’s from Frank Kern. He said, “If you can’t be the cheapest, there is no strategic advantage you have from being the second cheapest, therefore you have to be the most expensive.” Does that make sense?

I feel like if you go onto Amazon and you got two different products and they both say “New” but one is like five bucks and the other one’s four bucks, you’re probably going to by the one that’s four bucks. There’s no strategic advantage of being the second cheapest.

You’ve got to go for the most expensive…

Anyway, that’s the whole point and sorry for keep going and going and going but I’m just really excited to give the presentation. I think it will be helpful and I’m excited to show some more strategies that we use for local clients. So anyway, it’s going to be awesome.

Remember that how you price your product is determined on your ability to sell them. If you feel like you can’t sell them, read Extra Secrets. It will teach you how to sell them. Raise your prices by 10% automatically, just go do it right now. You’ll make more money and people will actually … they’re probably not even going toSales Funnel Radio bat an eye so it is what it is. Guys I’ll talk to you later and yes, let me know if this helps at all. Bye.

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