Productize to Improve Conversion

https://www.youtube.com/watch?v=5DqKa71G6xY

Productize for profit
Productize for profit

Transcription of the slides below which is available free thru YourTube.

Tip: I sometimes use the free transcript feature available on YouTube to monitor my “Uhs and Uhms” . Only six ” Uhs” in this one and not a single “Uhm”, not bad for me. My next bad habit to tackle… Keep my hand off the mouse while presenting so I dont swirl it around while presenting. PS. I removed the Uhs from the transcript and will often take the transcript and clean it up to add to my vlogs so that those who prefer to read, can do just that.
Hi everyone this is Katrina from
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ExposeYourSaaS and today we’re going to
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talk about why you should productize and
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package your offerings
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So, why should you package? before we dive
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in I’d just like for us to explore this
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question why productize?
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while productizing your services allows
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you to be more profitable
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and scale your business faster I want to
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take this question a little bit deeper
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and I want to help you really visualize
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the importance of what we’re talking
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about today
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to do this we need to start by getting
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an understanding of what your time is
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worth
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so the chances are that you are or if
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you are billing your clients by the hour
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you feel like you don’t have enough time
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or you’re noticing that a lot of leads go dark on you then
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you’re likely to be trading hours for
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dollars and there’s a very good chance
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that you’re making it too hard for
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prospects to make a decision about
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whether or not to hire you
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so to start with
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your product and the price you sell it
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for ultimately needs to represent the
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value of the results or the ROI your
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services provide to your clients not
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just the time it takes you to deliver a
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loan
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so because there’s only 24 hours in a
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day and only one of you
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um and each of your team members of
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course
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productizing is a necessity if you want
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to grow in a truly scalable and
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substantial way
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So today we’re going to take a look at
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how you can package your services in a
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way that’s highly valuable to your
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prospects and your clients when it comes
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to making a decision about how to do
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business with you
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so we’re going to start by taking a look
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at some things to consider when
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determining how to package your services
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so to begin with
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we’re going to use the good better best
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model for this exercise there are
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numerous productization models out there
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but good better best is simple and it
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simply works so to demonstrate this
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we’re going to take a look at a special
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case study also featured in William
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poundstone’s book titled Priceless which
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provides us with some insight for how
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the method of these offering or a method
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of offering these three pricing options
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holds water or in this case
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beer
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so in this example
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people were offered two kinds of beer
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they were offered a premium beer for 250
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and a bargain beer for our dollar eighty
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which one do you think sold more
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well if you guess the premium beer you
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guessed right about 80 percent purchased
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the premium beer
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so now a third beer was introduced a
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lower priced beer for a dollar sixty in
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addition to the previous two which one
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of these three do you think sold the
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most
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well in this case
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the 1.80 beer one about 80 purchased it
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the rest purchased the
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um premium beer nobody bought the
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cheapest option in this case
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now the third time around they removed
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the dollar sixty bear and they replaced
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it with a super premium 3.40 beer
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which one of these do you think sold the
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most
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well this time around the 2.50 beer sold
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the most
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small number bought the dollar 80 beer
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but 10 percent opted for the most
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expensive the 3.40 beer something to
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think about
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is some people will almost always buy
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the most expensive off option no matter
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what the price is
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so the basic truth here is that you can
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help your prospects make a choice by
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strategically offering them different
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options and price points so they are
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most likely to choose between your plans
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instead of being faced with whether or
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not to hire you all together
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so let’s take a look at how you package
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your products in this way and the first
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we want to have an understanding of some
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fundamentals
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the first thing to understand is that
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you need to have Clarity in your product
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offering
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it’s going to simplify explaining and
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offering your options to your leads So
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Gone are the days of the five page
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proposal because your leads are going to
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have to approve everything on all five
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pages of that long proposal so we want
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to get clarity around
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our product offering and keep it concise
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so that your prospects are able to make
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a decision quickly and be properly
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informed so Clarity in your product
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offering looks something like this
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first we want to explain what you’ll do
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next you want to explain what they’ll do
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explain how long we’ll take and of
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course how much it costs
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now you may be wondering where do we
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start
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in our exercise we’re going to start
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with the best package
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oops bear with me
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okay so the best package
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what do we want to put in it some things
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to understand about the best offering is
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first it’s the number three seller
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so this is going to be your number three
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seller among three packages and this is
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typically a high dollar premium product
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offering
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the features of your best offering
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should be essentially everything but the
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kitchen sink so your best offering is
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going to be going to require
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significantly more hours than your good
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or better options it has low scalability
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so it’s very hard to scale because it
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requires real time from you
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it also has a high price point and
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perceived premium value
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so remember the four points when you
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draft your best offering
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what you’ll do what they’ll do how long
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it will take and how much it will cost
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now let’s take a look at the good
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offering we’ll get the better off
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offering last
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so taking a look at your good offering
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good offering is going to be your number
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two seller it’s the entry level product
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offering
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and as far as features go it’s going to
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be a minimum viable solution I mean that
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you can’t get by with anything less than
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this
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so it requires minimal hours
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it is highly scalable usually a low Pro
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price point but there’s here’s the thing
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um it’s the minimum viable perceived
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value and this means that being the
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least that you can get by with this is
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the least that you can spend to get in
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the door
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basically that’s what your your good
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offering is
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so draft your good offering
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and just remember again what you’ll do
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what they’ll do how long it will take
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and how much it will cost
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so now we go to the better okay so this
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is the
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better solution it’s intended to be
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your number one seller it’s a mid-range
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product offering
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so features
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good plus some of the best
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it’s quite a bit less than your best
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option it is far more scalable than your
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best option
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and it’s just a fair price difference
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above the good option
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so not necessarily in the middle between
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the good and best it’s just a fair price
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difference above the good option and
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that means it’s going to have a
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higher Prestige value than the good
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option as well
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so now drafting your better option this
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is your top seller what you’ll do what
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they’ll do how long will it take how
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much will cost
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just keep those in mind
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so a quick overview
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here good is your number two seller
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it’s the entry level offering better is
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your number one seller
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it’s the mid-range offering and the best
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is your number three seller so this
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would be your premium offering
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so
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wait
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my best offering is my number one seller
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that’s what you’re saying
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well I’ve got some news for you it’s
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probably not true
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you’re likely selling you’re better
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as your best
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take a look and reevaluate your
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offerings so that you can truly offer a
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good better best
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as you’re building out these Solutions
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and productizing your services in this
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way consider all of the capabilities
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your best clients already find most
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valuable
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so this might include Professional
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Services like coaching Consulting and
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other types of services that you provide
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also think about positioning your
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services specific to a market segment or
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vertical or related to the ideal
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client’s specific needs
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so here’s an example of what a SAS
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vendor might have for their good better
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best lineup excuse me
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so note you’ve got in here
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what you’ll do what they’ll do how long
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it will take
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how much it costs and it’s communicated
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very clearly and concisely so these are
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your the three options each player
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and now
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now that we’ve begun to establish your
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service packages you’re ready to create
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some menus and make productization an
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even more effective tool in your sales
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conversions
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the menus when it comes to helping your
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prospects make a decision it’s critical
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to start by understanding what is
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driving their decision making the most
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so let’s take a look at that
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in the simplest terms your prospects
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will either have more time than money
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they’re cash sensitive or more money
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than time so they’re time sensitive
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what’s more they’re almost always
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willing to spend the one they have more
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of to get more of the other
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so you’re going to be able to find out
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which one they want more of because they
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will often tell you and here’s some
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examples
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so things that a cash sensitive customer
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says
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this sounds expensive
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I’d like to talk to the budget boss do
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you have a payment plan do we do we pay
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for this all up front is there a
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contract we’ve wasted money before how
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soon will we see Roi
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the time sensitive people will say
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things like how long will this take this
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sounds like a ton of work when will this
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kick in what is the time frame how often
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will I have to be on the phone that sort
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of thing
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so now we’re going to add a new layer to
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this regardless of whether they’re time
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sensitive or cash sensitive your
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prospects just want to make the right
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decision with as little complexity as
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possible
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so do any of these sound familiar
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that’s a lot to think about
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we’re going to spend some time on this
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and get back to you or how about this
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one can you email me a breakdown of what
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we get with each option
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I’ll take this back to my leadership to
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present
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many many more I’m sure you’ve heard a
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lot of different versions of those
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so why does this matter you see after
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even after simplifying our offerings
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these good better best packages we still
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need to simplify even further and the
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reason being when people have to choose
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between three or more options they
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really have to think about it
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they’re also likely to begin over
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analyzing your pricing as an expense and
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breaking it down and and all that so we
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want to avoid that
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should be easy to do business with you
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it should be easy to make a decision so
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your prospects have enough
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complication in their business and in
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their lives but with this doing business
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with you will likely be cutting through
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butter with a hot knife it should be
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easy to do business with you
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so if we go back to our good better best
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offerings how many choices do we have
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here three so
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A well-trained salesperson will get to
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this and they’ll eliminate one for the
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customer so they can choose between the
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remaining two which is a lot easier so
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while that’s effective you can actually
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automate that skill by creating two
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menus one menu for cash sensitive
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customers and another for time sensitive
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customers and then they only have to
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choose between two options
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so on the first menu it’s going to be
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called menu a this is for your cash
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sensitive folks so it features the
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entry-level Bare Bones product
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and then the better product
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or your best seller
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so you’ve got them just looking at two
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so it’s like this one just barely covers
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what I need is basically going to be a
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lot of
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work that I’m gonna have to put in
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we’re combining a variety of line items
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into an easy to digest format and this
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is designed to guide the customer to
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what they need to do they’re choosing
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between the Bare Bones and the automatic
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Basics so still most of them are going
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to go for this top
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best example
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now menu B this is for your better
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offering along with the best product so
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this is well aligned to your time
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sensitive people they’re willing to pay
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more
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to get the time back they generally have
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more money than they do time
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that’s going to look like this so we’ve
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got the automation Pro and the basic
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so what do both menus have in common
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they have the better number one seller
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so that’s right
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the better option our number one seller
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our good better best of our good better
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best offerings this keeps your greatest
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dollar for Value product as a choice for
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every Prospect you present to but it
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appeals to them based on where they
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where they set
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and all the places you present your
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offerings to your audience and Prospects
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be sure to consider when and where you
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can leverage this menu approach and
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moving them to a decision and to make it
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faster and less painful for for both of
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you
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and that pretty much covers it so
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feel free to I’m going to stop the
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recording but feel free to answer any
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questions or ask any questions in the
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chat and we will get to them
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as soon as we can
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