There is no right or wrong way to build a business, and there are many ways to reach the level of business you want. Unfortunately, many coaches, consultants, and professional service providers fall into the trap of selling low-ticket services that can keep them overworked, exhausted, and not making the money they desire.
There are many reasons why this happens.
- They don’t have a good understanding of the basics of building a successful business that can give them higher revenue, high profits, and more freedom.
- They aren’t exposed to the possibilities of what and how they could be selling more premium services to make bigger money for their work.
- They would like to charge more for their services, but they can’t seem to get clients who will pay them more.
- They have a belief problem that they can’t sell their services for more, and they believe they will lose too much business if they try.
- They don’t see the bigger opportunity and value of what they could be selling to make the most money.
Do any of these things sound familiar?
I understand if they do. But unfortunately, this is not uncommon, and where most of my clients are when I begin working with them.
I can tell you story after story about clients who could charge 5x, 13x, or even 20x more as we worked together. And their clients are happy and eager to pay them what they ask, AND their clients refer business to them.
I learned how powerful the strategy of selling ultra-premium services is when I built one of my earlier businesses in fitness over twenty-five years ago (before the internet and technology today).
Fitness is typically a low-ticket volume business model. So, when I started that business teaching fitness classes out of a community hall, I was making about $36 a month per member.
It was in a small community with only a hundred people, so the opportunity was minimal to make much. But I wanted to help others, and I loved it, so it’s what I did.
I had about half of the community working out with me, but even then, the measly $36 a month wasn’t giving me much money to make much of an income and have money to grow my business.
So, I added nutrition and weight loss programs and began making more money as I charged 10x more than the monthly membership fees to my fitness classes.
TIP #1 – Look for a bigger opportunity to increase the average sale.
I had no competition, so it wasn’t hard to get what I asked. In addition, I had a small office in my home where clients could meet with me.
This was my first understanding of the financial impact offering and selling more premium services could make, and as a result, I was able to rent out a small building that was around 350 sq. ft.
Yes, you read this right, 350 square feet. We crammed into this tiny little building for my classes, running a few classes a day to accommodate the forty-fifty members I had.
I had a tiny little desk in the back next to the bathroom with two chairs to meet with my weight loss and nutrition clients. Quite the setup, right?
I didn’t mind. I loved it, and so did the people who belonged.
But here is where things really changed.
I created a program combining a specialized 30-day workout with nutrition and charged 4x my membership fees. I gave the program a name and filled it.
TIP #2 – Package your services with an outcome or result!
The results they could get in thirty days with my program were amazing, and word quickly spread. I became known for that program, which always had a waiting list. It eventually made me more than a million dollars in revenue.
TIP # 3 – Be excellent at what you do and the results you get your clients!
It wasn’t long before I had people driving twenty miles from the next bigger town each morning at 5 am to do my program. Five mornings a week for thirty days. But they loved it so much; they stayed as members.
Several women would carpool to my little place, and it wasn’t long before they begin convincing me that I should move to the bigger town where there was more opportunity.
I was scared and nervous to make a move. It was a big financial investment, and I knew I would probably lose many of the members that originally started with me because they wouldn’t want to make the twenty-mile drive regularly.
I made the move, continued to bootstrap that business, and expanded when I could. It went well, and I eventually grew that business into a $16,000 sq. ft. club that offered everything.
TIP #4 – Don’t stay in what feels comfortable; this is not where your bigger opportunity is.
Growth doesn’t happen when you don’t go beyond your comfort zone.
Of course, I had many employees, programs, and members in my facility, and we offered programs that ranged from $39 to $12,000. Yes, we sold them all—unheard of in our community and in the other fitness clubs.
We had doctors, lawyers, judges, affluent, successful business owners, high-level professionals, and not-so-affluent members too.
TIP #5 – If you don’t offer premium services, you can’t sell them, and there are always people who want them and will have the money to pay for them.
I was determined to have the best club, be different from everyone else, and be the go-to club in our community.
I consistently made my competition copy me (and they did). However, I did not copy them!
As we grew into the number-one health and fitness club in the community, two of my competitors eventually closed their doors (one asking me to buy them out). I didn’t because I knew I would get many of their members once they closed.
TIP #6 – STAND OUT and make everyone in your market strive to be like you, not the other way around. Be the Go-to-Expert!
I also opened a second business within that club, a full weight loss center that merged nicely with my club and ran with a separate team, business model, and systems. So, it was another business within my business.
During the 2008 recession (which went on for four years), I decided I wanted to expand and open another location for women only, but I wanted a premium services club. I didn’t want another volume business like the one I currently had that had high overhead, required a large staff, and more to manage and take care of.
I enjoyed the higher-value clients, and I saw how that concept was a “work smarter, not harder model.”
I was able to make some good deals on rent and build-out because businesses were closing down right and left, and I settled for a nice little 3500 sq. ft. facility—a fraction of the size of my big club.
We were an elite operation for women, and I didn’t need hundreds and hundreds of members (we couldn’t have accommodated them in the space). So, we charged premium fees for everything we did. I again had two businesses in one as I loved how well that had worked in my other club.
It was a small business with less to manage, less overhead, and extremely profitable!
In fact, it made as much money as my large club, but with much higher profits. I eventually sold all four of those businesses for significant profits, and it was life-changing financially for my husband and me.
TIP #7- You can’t be successful alone!
When I began coaching and consulting over ten years ago, I fell into the low-ticket trap (what I was being taught by the organization and coaches I was working with). Offering my services for little money but helping my clients make a lot of it, I realized I needed a new plan.
Going from charging a client six hundred dollars a month to charging my clients thousands of dollars a month was a game-changer in my business and my life.
As I saw others being taught the low-ticket method like I was, and I watched great coaches stay cash poor or burn out and stay exhausted, I knew I had a great opportunity to take the expertise I had developed over many years to help them sell ultra-premium services.
When I can help a coach turn their annual income into their monthly income, it can make quite an impact, right?
Imagine if you were selling your services for three to twenty times more (this has been the results I have helped my clients get). If you were selling services for $25k, $50k, $100k, or much more, what impact would that have on you and your life?
TIP #8 – When you work with premium clients, they aren’t as affected by changes in the economy. You can create your own economy by separating yourself to work at a higher level.
During the pandemic, one of my clients closed ten new clients for $10k-$40k each in only ninety days.
Another one of my clients went from charging $3,500 for her services and cutting her prices to close clients to signing a $48,000 client within two weeks of working with me (13x more than she had ever made on a client). She got that client from her existing network on LinkedIn.
If you want help scaling your business into multiple six or seven figures and this newsletter resonates with you, book a call with me at A.carden.com. I want to wish you all the best through the holidays.
If you would like more education and training on growing your professional consulting, coaching, or client service business, here are some ways to get more!
- You can subscribe to my EXPERT IN YOU PODCAST & SHOW. Choose the platform you like!
- You can subscribe to my YouTube channel.
- You can attend my upcoming Expert In You Business Accelerator & Marketing Luxury Retreat!
- You can book a call if you want my help to grow and scale an Ultra-High-End Coaching or Consulting business!
Did you find this blog valuable? I would love to hear your feedback and thoughts.
To your success,