Why It's Easier To Sell A $5,000 Product Over A $500 Product

Written By Dan Henry

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Stuck feeling like you can't raise your prices because your potential clients won't be able to afford it, or even want to pay a premium price?

I'm telling you right now... you are DEAD WRONG. 

In fact, that false belief you are hanging onto is actually a complete roadblock to your growth and success in your business. 

The people that are willing to pay the most are the easiest to sell to. Read that again. 

If you charge a premium price, you will get better clients, and they will do the hard work eagerly and willingly. 

In today's video, I'm going to breakdown the change in your mindset you need to have to give yourself the permission to charge what you're worth. I'm also going to explain why you must invest in yourself at the same high-standard level.


In this video, I'm going to cover:

  • Why charging less for your online course or coaching program is actually making your potential clients trust you less
  • The mindset shifts you need to start making today to change your results tomorrow
  • AND... why the people who are willing to pay the most are the EASIEST to sell!

Transcription

Hey guys, in today's video, I'm going to show you why it's actually easier to sell $5,000 product than a $500 product, by the way, don't forget to subscribe to my YouTube channel as I release videos like this every single week.

All right. So let's say you sell a coaching program, an online course, a mastermind, a virtual event, whatever it is, right. And you know, I know so many people who sell $200 coaching programs, $200 or $500 courses, and they wonder why they're not growing their business. They wonder why they're not scaling. They're wondering why they're not making more money. And they keep thinking, well, I need more people to buy my 200 or 500 or even thousand dollar offer. And that's, that's what I need to do. When in reality, you really need to increase your prices. And I'm going to tell you why, if you let's just take a few industries for example, right? Like let's say you teach people how to grow their business or make money. Do you really think it is believable that you can make somebody a millionaire or a bunch of money or whatever for 200 bucks, like, think about that?

Do you re if somebody wants to grow their business, is it truly believable that they're going to be able to get that result for 200 bucks? Not so much as well. Let's say it's a weight loss, right? Is it really believable that if you charge 200 bucks for your program, that you're going to be able to get the result. And that's the thing is when you're the cheapest, people have a hard time believing you're the best. And the other thing is people that are willing to pay the most money are also the people that are the easiest to sell. Let me track back for a second and let me see that again, the people that are willing to pay the most are also the easiest to sell the people who are looking for a deal are the hardest to sell. And I know this, and let me tell you a little story.

When I got started, I bought into this whole thing where, you know, all, let me sell a 12 week one on one coaching program for two grand or, Oh, let me sell a course for 200 or 500 bucks. And I found that when we were marketing to these people and when we were trying to get them to buy, they had about 10,000 questions. They had all these concerns, they had all these objections and I worked so hard. I mean, so many videos. And I just did so much to try to convince them to spend 200 or 500 or even a thousand. We made about $8 million with a $997 offer. And the amount of support tickets, the amount of questions, the refunds, the objections we would do a webinar. And what will this work for me? Well, you know, just, just all this, this crazy stuff.

Imagine I'm a person that I've been featured in Forbes. I've spoken on stages in front of 6,000 people at the most, you know, prestigious marketing events in the industry. I've won multiple two comma and an eight-figure award. I was voted the top internet entrepreneur in the Tampa Bay area, in my local area. And just all these awards and accolades and things that I've accomplished and, and, you know, making a million bucks in a day, which I did in 2020, all this stuff, right? And yet I'll get questions like Dan, do you really think this will work for me? And again, that is the type of questions you get when you sell something cheap, because people who look or even consider things that are cheap are the type of people that will sit there and say, well, you know, you sure you can make money with this?

No, I've got an $18,000 watch because I'm not sure that you can make money with it. Come on. But for instance, I mentioned the million-dollar day, that was a $30,000 offer. I sold 34 spots into my $30,000 mastermind. Those people when it came time to buy, and we said by 90% of them was like, here you go. Where's the wire instructions. I'm in no questions. Maybe 10% had a couple of questions, but not really. They were like very simple questions and they weren't objections or concerns. They were, they were just logistical questions. But whenever I've sold a $47 product, if I'm like, guys think about this Brandon, could you grab me a copy of my book? I'll give you a perfect example. Right? Perfect, perfect, perfect example. Thank you, sir. This right here is my book. Now we sell this for $7. It's actually free, but you know it's $7 for shipping.

So we, we say it's free. And then you pay shipping, right? Seven bucks. I literally have had people comment on my Facebook ads and say, well, why is it so much for shipping guys? I built an eight-figure business packed, all that knowledge into this book. There's even a blueprint in here for my third, first 30 days, how I made a hundred grand. It's a step by step walkthrough of everything I did on every single day, right down to when I had lunch. And you, there are actual people, human beings in this world who take the time to comment and say, well, isn't $7 a little much for shipping, or isn't $20 a little much for, for international shipping guys. Those are the type of people that no matter what, they're always going to be hard to sell to no matter what the price point, because the way they think is just on another level that, you know, even if they did buy your program, working with those types of people is going to be very difficult because you have to drag them in and drag them around.

Right? And the thing is, is that when somebody really wants to invest in themselves, when somebody really wants to improve their life and they are willing to pay a premium to make it happen, they are willing to make an app. They are easier to sell because just by the, the, what happens mentally and what happens in your mind that allows you to be okay with investing in yourself is the same thing that happens in your mind that that makes you easy to close. So the people that are, are more willing to do what is necessary to help themselves are the people that are easier to sell to. So when we stopped selling thousand-dollar offers and we started selling a higher premium program, a higher price program, but at the same time, a much better program, a program where we had, I mean, right now we've got like four coaching calls a week, right.

We literally have like such a great program. And that's because it's not a grand or 500 bucks. It's, it's more than that. And it also delivers a hundred times the results. And so when people like that, get on a call with us, or they attend my events or whatever, and they're like, I'm in, I'm ready to go. I want to invest in myself. They're easier to sell to the people who complain and moan over $7 for shipping, for a book that literally has secrets in it to help me build an eight-figure business. Okay. And I w look, if you're the type of person that is going to argue over the shipping cost of this book, I don't want you to, as a client anyway, you're just going to give me a headache. Okay. And the people that you work with, if they do that to you, they will give you a headache.

And by, by having an offer, that is a, a higher price. Not only are those people easier to close, but they are also easier to work with and get the results back years ago, I used to have people say again, why I'm a little skeptical because you're not charging enough. And I, I realized that it was my own limiting beliefs stopping me from charging what I was worth. And, and, and you might say, well, Dan, you, you saw how to make money. What about like, marriage count like an offer on marriage or weight loss. Okay. Well, think about this. How much does the divorce cost you? Right. Well, cause, cause that's the thing people said, well, well, Dan, if you're able to make somebody a millionaire or you're at, you're able to make somebody a thousand dollars or a hundred thousand dollars, of course, they'd pay 10 grand.

Right. Or of course, they pay five or, or of course, they pay 30 because you're making them money. Well, yeah, but think about this, let's say you're on the rocks with your marriage. And let's say, somebody, says, well, we have this marriage counseling program, or we have this marriage coaching and it's a $5,000 or it's $10,000, whatever. Oh, that's expensive for that. Well, no, it's not. Because think about it. What would it cost you if you got a divorce, only half of everything you've ever worked for. Think about that. Is it worth it to pay five or 10 grand or even more to save yourself from moving from losing half of what you've accumulated in your entire life? All right. Let's go to weight loss. Let's say somebody has a severe weight loss problem. And there's a weight loss coach. Who's really good. And they really good at getting people a result and they charge $5,000.

Oh $5,000. That's so much to pay for weight loss. Yeah. But what would you pay in doctor visits in lost opportunities in, I mean, I remember I met a guy once who was extremely overweight and he didn't use to be overweight. And he told me how terrible his life was because he was that overweight. His romantic relationships were pretty much nonexistent. His doctor visits were expensive. His insurance was expensive. He ended up getting diseases as a result. I believe he became diabetic. And that the price of insulin, the price of just all of that is so so much. And I remember saying to him, I said, Hey, let me ask you a question. Let's say there was somebody who was really good at it. And by the way, this man eventually did lose the weight because he had invested in a, in a program that allowed him to lose weight.

But, but prior to that, I said, and maybe this was part of the reason that he ended up doing it. I don't know. But I asked him, I said, if there was somebody that you knew was very good at getting you to lose weight and could work at you because you've tried it yourself, it hasn't worked. If there was somebody that was good at it, but let's say they charged a premium price because they were so good. Right. 5,000 say, would you pay it? And he said, absolutely, absolutely. I would because I pay way more than that all the time, as a result of not losing the weight. Think about that. Just, just think about that. So the next time you say to yourself, well, Dan, I can't charge that much. I can't charge. Well, you would only not want to charge a premium price if you want it bad clients.

And you wanted to have a lot of trouble selling to people and you didn't want to get people results. Because if you charge a premium, you will get better clients. They will be easier to close and they will do the work. And they will appreciate you. More people that buy $200 coaching programs and courses are like the same people that show up at the grocery line and spend an hour looking for a coupon in their Sunday paper and arguing with the cashier. I mean, that's like the equivalent, but people who have things to do don't care about that because they care about the big picture they care about. They don't care about getting an extra 20 cents off of that steak. They care about the memories they will create when they take that stake and go to that family barbecue and spend it with their kids and spend it with their cousins and their family and their aunts and uncles and create memories.

That's what those people care about because their mind is at a higher level than the person who's worrying about saving 20 cents per pound. And that's why you want the people with a higher level of mindset. You want the people that appreciate what you do. You want the people that are ready to invest, and you want the people that are easier to sell to. And those people that all comes with selling at a higher price when we switched and I've done several videos on this, but when we switched from low ticket to high ticket, the amount of staff I needed went down, our expenses went down, our profit went up and our student results went through the roof. I went from having people simply quit their job and maybe hit six figures to making multiple millionaires. I had a lady, her name is Shana, and I'm going to do a student interview with her. So she joined my $30,000 program. Okay. 30 grand, 30 GS. And she was, she's a coach. She's a health coach. She teaches women how to balance their home hormones and lose weight. And she just could not wrap her mind for the longest time. Could not wrap her mind around charging

This instead of this. Okay.

She could not wrap her mind around that. She could not wrap her mind around charging more than less. Oh, I don't think they're willing to pay [inaudible]. And eventually she says, you know what, Dan I've been doing this long enough. My business is going nowhere. I'm in. And by her finally investing that high ticket price to solve her problem. She now gave herself the permission to charge more because let me tell you, if you are not willing to pay a lot, you will not be able to charge a lot by pain. By me charging my clients a premium price. I give them the ability to charge their clients a premium price, because you cannot mentally ask for more money. If you are not willing to pay more money to solve your problem, you can't say, Hey, I want you to pay me a premium to solve your problem.

I have a solution to your problem. I want you to pay me a premium, but you're not willing to pay this person over here at premium to solve your problem. It doesn't work like that. There's too much internal mental conflict. So when Shayna finally took the plunge, got into my program, high ticket, it's only been, I think Brandon, how long it was since we did that event, weeks? Yeah, three, three weeks, three weeks yesterday. She had her first $19,000 day. And it's simply because I taught her and worked with her on raising your prices creating a high ticket offer, selling it over the phone, $19,000 a day. That's what some teachers make in a year. Not that that's okay, but do you see what I'm saying? So it is easy and keep them on. I have 5,000 students that bought a 997 program over the years.

And we raised it to two at some point, but even 2000, a lot of them are doing well. Yeah. I've got a few of them that are making six figures a month. Sure. Few that made millions. Lot of them that quit their jobs. But when I created a higher ticket program, people having 10, 15, $20,000 days, that's a weekly thing. Now I hear a new story about that all the time, where it was rare before. Why? Because I'm getting better. People that are willing to invest in themselves, willing to do the work and easier to work with. And so I get better results because I charge more so that ladies and gentlemen is why it is easier to charge more than less. It is easier to sell at a higher price and less cause the type of people willing to pay a higher price are far easier to sell than the type of people looking for a lower price.

All right. So if this was helpful, don't worry. You don't have to pay me $30,000. You can grab my book for seven bucks and you can get started and you can learn a legal link in the description. If you want to speak to our team about what kind of options we have to help you grow, obviously we're not cheap, but I always say I don't have anything cheap, cause I don't have anything that sucks. And it's far worth it. If you are ready to level up, I'll leave a link where you can book a call, talk to my team and see if we have anything that we can do to help you and what that would look like. But if you haven't yet at least grab a copy of the book, leave the link in the description. So you guys, in the next episode, don't forget to subscribe because if you like videos like this, I release them all the time. So make sure to subscribe. So you guys sit.