TLMM #067: How To Stop Commoditizing And Start Charging Premium Prices For Your Products And Services

Read time: 4 mins

In this week’s issue, I want to talk about how to earn more by selling your products and/or services in a market of one as a Local Small Business Consultant or Digital Marketing Agency Owner…

I was recently re-reading Alex Hormozi’s $100M Offers book…

And there’s just so many golden nuggets in it that I thought it would be helpful to summarize the idea of “selling in a market of one.” 

So with that being said…

All too often most Local Small Business Consultants and Digital Marketing Agency Owners sell the same things at the same prices…

Essentially commoditizing their products and/or services.

Thus making it extremely difficult to make sales and more importantly make enough money.

However, there is a better way.

So with that in mind…

Let’s dive in!


Why You Shouldn’t Allow Your Products And/Or Services To Be Compared To Your Competitors

If you’re like most Local Small Business Consultants and Digital Marketing Agency Owners…

You’re essentially selling the same products and/or services for similar if not exactly the same prices.

This produces a significant problem for you (and your competitors).

Basically, you’re commoditizing your products and/or services…

And when you do that, it’s a race to the bottom.

Meaning, that when a customer or client can compare what you’re offering to your competitors…

And if they can easily justify that they are essentially one in the same…

Then they will choose the one that’s the cheapest…

Because if all things are equal…

Then the one that’s the cheapest has the most value by default.

So you will either be passed over for one of your competitors…

Or you will be picked because you have the lowest price.

Unfortunately, neither of those two are exactly “winning.”


Why You Don’t Necessarily Want To “Win” In A Commodity Competition

When you’re a commodity, the market drives the prices down to the point where the margins get so thin…

What it’s just enough profit to keep the lights on.

And when there are barely any margins for the products and/or services you offer…

You end up with a business that can barely make ends meet.

You become a slave to your business as you must do most of the work yourself.

You make just enough to hope that things will eventually turn around.

But the reality is that it’s a recipe for disaster and will ultimately be your business’s demise.


How To Differentiate Your Products And/Or Services So That You’re Selling In A Market Of One 

So how do you prevent your business from being a commodity?

You must differentiate your products and/or services from your competitors.

You can do this by creating an irresistible offer… (or as Alex Hormozi calls it, “a grand slam offer”)

This offer cannot be comparable to any other offer in the market.

It must have an attractive promotion that generates the interest of your ideal audience.

It must have an unmatchable value proposition so it stands alone in the market.

It must have a premium price because most people value things that are more expensive so that alone will increase its perceived value.

It must have an unbeatable guarantee as that will help customers or clients justify your premium price.

It must have payment terms that allow you to get paid to acquire new customers or clients as this removes the cash restraint on your business growth.

And the best part is this allows you to sell in a market of one (or a vacuum)…

So the prospective customer or client now has nothing to compare your offer to.

Meaning, you have no competition!

To sum it up, you will get more customers, at higher prices, for less money.


How To Get More Customers Or Clients To Say Yes To Your Higher Prices

Your goal is to get more customers or clients to say yes to your offer at a higher price by increasing your value to price discrepancy.

So you should only increase your price after you significantly increase your value.

This way your customers and/or clients still get a great deal.

But most businesses’ pricing is based on the following factors…

  • Check what everyone else offers
  • Factor the average price
  • Go slightly below the average to remain competitive
  • Offer what they offer plus a little more
  • End up with a value proposition of “more for less”

Over time more and more competitors will enter the market…

And eventually there will be a cap on adding any more and offering it for any less.

But you’re not in the business to get the most customers or clients…

However, you are in the business of making the most money.

Which is why you need to offer your products and/or services at premium prices.

It’s the only choice that will allow you to provide the most value…

It’s the only way to have a unique and strong position in the market.

When you raise your prices this is what typically happens…

  • You increase your client’s emotional investment.
  • You increase your client’s perceived value for your products and/or services.
  • You increase your client’s results because they value your products and/or services and are more invested.
  • You attract the best clients who are the easiest to satisfy.

And best of all…

These types of customers and/or clients are the ones who are most likely to receive the most value.

Plus you by doing this, you end up multiplying your margin…

Thus allowing you to have money to invest into systems which creates efficiency, improves customer and/or client experiences, scale your business…

And most importantly, it allows you to keep watching the numbers in your personal bank account go up even with reinvesting in your business.

This ultimately allows you to enjoy the process over the long haul to help more customers and/or clients.

I hope you can see why it’s so important to differentiate your products and/or services from your competitors if you ultimately want to make more money by helping more people.

See you next Monday!


When you’re ready… 😉
Here are all the ways I can help you…

1. Free your time and scale your Digital Marketing Agency without increasing your workload by getting easy to sell recurring clients in 8 weeks or less here.

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5. Level up your knowledge through training programs & done-for-you digital assets specifically for Local Small Business Consultants and Digital Marketing Agency Owners here.

6. Turn your social media profiles into lead generating landing pages here.

7. Remove the complexity, confusion, and overwhelm when it comes to connecting all the tech with sales funnels, email marketing and paid ads here.

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