Why are your higher priced packages making you less money than the lower priced packages?
When I met this particular client, she was running a thriving dog training business for over 12 years and had a waiting list of clients eager to buy her business’ packages.
Her top-level package was selling very easily for $1497, and she had no shortage of dogs in this program. When we dug into all of her numbers, however, this high-end package wasn’t really a big money maker.
She actually had other services at lower price points that brought more income and profit into the business, just in smaller amounts.
This is a common misconception by many business owners: the highest price package is the best one to make money in your business. This happens because we get an influx of cash from the bigger sales, and they tend to add up quickly. Much quicker than the lower cost options.
There are several reasons your highest packages may not actually be the best ones to offer all the time. Here are two of the biggest ones.
The demand on your business capacity
Big packages require big investments in time to serve the client. If your biggest package requires hour long weekly calls, plus email support, plus reviews of things, the time will add up.
How many clients can you comfortably serve each week where there is a high time investment? Contrast this with lower touch (and time investment) packages that still support your clients at a lower price point.
Going back to my client, her biggest package had multiple hours of training in the first week, so she had to limit the number of dogs in her facility.
She offered other programs that were 1-2 hours a week and could hold a larger number of clients in each class.
You tend to throw in too many freebies and bonuses into your business packages
I can’t begin to count the number of business owners who throw in freebies and bonuses to the clients of the large package sale, but they don’t count the financial and time cost of providing those bonuses.
I’m not talking about templates or bonus videos, which don’t likely cost much if anything. I mean additional products given as gifts and bonus calls and other services that are a true commitment of resources.
My client generously gave pet beds and electronic collars. Neither gift was cheap, and then she added additional sessions for the owners in her package. She was very, very generous.
This practice was costing her money. Not just for the gifts, but the trainers, her time, and hours in the facility that she kept open for these sessions.
Now, I want to say that you should sell your highest packages! But sell them so that they work best in your business.
My client made a few adjustments not just to her flagship program, but to the others so that she could continue to be crazy generous with her clients. I love that.
You get to decide what your business gets to look like. But know your capacity, and your numbers before you sell the big one.