How To Beat Your Competition Without Reducing Prices

“No — I don’t have the money to pay you $5,000”.

I’d just told my client that he would have to fork over five-grand for me to do his business plan.

Sh*t! Had I asked too much.

This was the first time I was doing a business plan for a startup. I’d done ones for bigger companies before — but was like a fish out of water for this one.

I didn’t know how to price my services — and I didn’t want to lose the client.

After all five grand is five grand.

“I’ve checked around and other people are willing to do this for $2,500 and less. Why are you charging $5,000 for the same thing?”

If your client asks you about price — what do you say?

There are two answers to that question that you can give. The standard answer is to tell the client how awesome you are. How many clients you’ve served before. And how many degrees hang on your wall.

That’s a good way to go.

But there is a better way. This will show you how to close your client for higher prices than your competition is charging. But still have your client walk out the door with a big smile on her face.

Plus, at the end of this post I’ll share with you the script that I use to close clients at $5,000+. And how you can do the same.

Why you must read this post

In this post you’ll discover the ‘Service Selling System’. This is a revolutionary system. It will help you sell more to your clients, at higher prices without ever having to compete with anyone.

By following the simple ‘Service Selling System’ you will be able to raise your prices. Earn higher commission. And create greater customer satisfaction.

Your customers will love you for using this system. They will instantly connect with you. And will see for themselves how value you are as a vendor of the service or product you provide.

What Is The ‘Service Selling System’

The ‘Service Selling System’ is an acronym to get your customers to see the value of what your service does for them.

It takes away all the focus from you and your product. Turns it around on your customer and how you can be of service to them. But not only that it help you charge higher prices.

Here’s why this system works so well.

People don’t care what you’re selling. They care what this product or service will do for them.

This thinking is ‘WII-FM’ or ‘What’s In It For Me’.

Everyone is always thinking — what can I get out of this. How will I benefit. 
Will this product or service I’m thinking about getting help me get to my goals.

But that’s not all there are four specific areas that each of us is thinking about. An easy to remember method is the ‘Four Fs’

Each of us is constantly thinking about the four ‘F’ – Faith, Family, Finances, Fitness.

Or to think about this more crudely — will something make me feel better, f**k better, funds better or fight better.

As long as one of these four criteria is met — your client will be interested in the product.

But here’s the kicker. Your products doesn’t actually have to do any of these things. As long as you can show how one of these four F’s will be better.

These four F’s is what got our caveman ancestors out of the caves. It got them to build the highest skyscrapers and the fastest cars.

Think about it for a second. Most people buy a new house, or a fast car for one of the Fs mentioned above.

Or if you sell jewellery — your clients are looking for one of the above. They won’t say it. They won’t even know it — but something inside them will be propelling them to do this.

If you can connect your product with their desire to make one of the F’s better — you can sell it for any price you want to.

So let’s look at how to do this in real life.

I’ll talk you through how to do this specifically and close your clients at higher prices.
Let’s begin.

How do you use the ‘Service Selling System’ in your business

Like I mentioned earlier Service Selling System is an acronym. This will help you remember the steps to follow. If you follow the steps exactly, you will close more leads.

First let me show you what ‘Service’ stands for.

S = Set the agenda
E = Explain the format
R = Research the pain
V = Vague To Specific
I = Intensify The Problem
C = Create a decision point
E = Ease the tension

This is a simple method to remember.

Now let’s see how to install this in a regular client call.

S = Set the agenda

When you get a new customer on the phone or in a consult — they won’t know what the agenda is. You can set the agenda by asking a simple question.

“What made you invest your time in meeting with me?” or “What was it that brought you in today?”

This is something that I picked up from my dentist. Every time you visit your dentist — they ask you this question. I’m not sure if they do it deliberately, but the minute they ask you this, they are on.

You’re on their agenda. Now you can’t spend the time talking about the weather.

Set the agenda — by asking this simple question.

When I asked my client this question — he said. “We’re in today to see if we can get a business plan done for our upcoming social media app.”

Now it’s out in the open. We both know what we’re going to talk about. I don’t have to dig any more. They don’t have to get into small talk. 
We can get to business.

E = Explain the format

Once you’ve set the agenda — you need to explain how this particular meeting is going to go.

Usually the best way to do this is make a quick statement about what to expect from the meeting.

Here’s how I do it.

“I’m going to ask you a few questions to if and how I can help you.

“Then I’ll tell you what we have.

“You can ask any question you want.

And at the end I want you to tell me if this is something that interest you”

This four sentence does a few things.

It tells them that I’ll be asking questions.

It also clarifies that I don’t know right now if and how I can help. I’m asking questions to find out if and how I can help.

Plus it takes the pressure off me. If I can’t help them. I tell them. If I can help the. I do.

Next it lets them know that they can ask me questions. 
Finally — it ensures that they know that there is a decision point at the end of the call.

R = Research the pain

Now it’s time to research the pain. I do this by using the words ‘exactly’, ‘specifically’, or ‘precisely’.

My question to the client was ‘tell me specifically what have you done so far to create your business plan?’

This does two things. First it gets my client to talk about what they’ve done so far.

Second, it gets them to tell me everything they’ve done. If they haven’t taken any action — they might not be a good fit for me.

If they’ve done all the work — than I might not be able to help them.

The keyword ‘exactly’ is important. It forces them to tell you what actions they have taken. If they haven’t taken action, than usually they’re not a good fit for me.

V = Vague To Specific

At this point, when you’re just starting out in the call or consult — the client will be skeptical. So we have to get them to be specific about what they’ve done.

My client initially said he had researched how to create a business plan.

Not good enough. So I pushed him a little and asked him to tell me specifically.

He went on to tell me that he had spoken to three other people about doing the business plan. Creating this for them.

At this point the client is still telling me the situation that he is in. I don’t know the problem that he is facing.

So I have to get him there by asking specific questions. Such as,

“What will this [business plan] do for you?”

“Why are you looking to get this [business plan]?”

“How will this [business plan] improve your [faith, family, fitness or finances]?”

At this point I want to find out what are a few problems that they are perceiving in their minds. I want to enter the conversation in their minds. (Not my words, other very smart marketers talk about doing this.)

With this question I can get to the core of the issue. I can understand what’s really bothering them in their life that they are seeking my help.

For this client — he was looking to raise capital investment in his app. He wanted to how qualified I was for this job.

But before you answer this question you must dig deeper.

Which is where the next step comes in

I = Intensify The Problem

How do you intensify the problem by asking —

“what will happen if you don’t get [this result] that you’re looking for. “

And

“What will happen if you do get the result you’re looking for?”

At this point we’re trying to develop the gap between where they are and where they want to be. Based on what they hope to achieve.

For my client — the difference was he was currently sitting on his own company valuation of $1,000. He was looking to raise the valuation of his company to $1,000,000 to $50,000,000.

That’s a pretty big gap.

Now instead of talking about the price of my product — I can talk about the gap that not having my product produces.

It’s not about paying me $5,000 — it is about not having the $1,000,000 – $50,000,000 valuation for his company that he’s looking for. His words, not mine.

So now I can talk about this specifically.

At this point I move to the decision point.

C = Create a decision point

This is where you compare the gap between where they want to be to where they currently are. And then state the price of your service and your product.

Now the price is out in the open. The client has two choices either to buy or to say no. There isn’t a third option.

Most clients now will say something other than a yes or no. Because it’s very hard for human beings to create tension.

A ‘No’ will create tension for you.
A ‘Yes’ creates tension for him.

So they say something like my client said — “I don’t have the money to pay you $5,000”.

Now the next step is to help him come to the conclusion and decide to use your product.

Without being pushy. For this client — this was easy.

My question to him was simply would you rather spend $5,000 now and get a valuation anywhere from $1,000,000 to $50,000,000. Or save the $5,000 and remain at the current $1,000 valuation you are at?

Hi answer was obvious, “Well, when you put it like that — sure I’ll pay the $5,000… but can we do it on visa and I’ll write you a cheque…”

At this point you can talk about payment terms. Which is where the last thing comes into play.

E = Ease the tension

Now that the client has made a decision — you ease the tension by asking simple questions. The deal is not through yet. You still have to take the payment.

So ask him simple questions as follows.

“What’s the billing address we should use?”

“Which card do you want it on, Visa or American Express?”

“What’s the name on your card?”
Notice we still haven’t asked the credit card number. Because if we ask it too early, the client may back out. But we’ve asked him simple questions.

Once he’s answered the simple questions it becomes easy for him to answer the last question.

“What the card number?” and finally “What’s the security code?”

Now he’s told you everything. Now the tension from his side has been eased. It’s all on you to deliver.

After we delivered the business plan he was able to get a valuation of $25,000,000 last time I checked with him.

That’s a pretty good investment for spending only $5,000 when he didn’t have the money.

That’s the ‘Service Selling Formula’ in action. You can use this formula to out fox your competition.

While everyone else that your clients speak to talk about why they are worth the price they are worth. You will be talking about how much not using your service is costing your clients.

This creates a completely different scenario for your client. This forces them to think, not how much money they are paying right now. But how much money they would lose if they didn’t use your service.

And when you put it that way — it becomes clear that your service should be used. And that it is in their best interest to use your service.

Let’s do a quick recap of what we learned today

Quick Recap

You discovered the ‘Service Selling System’. The system that helps your clients to look at your service in a completely different light.

How to use the ‘Service Selling System’ to take away the conversation of how much your service costs them.

A technique of focusing your client’s attention on how much they are losing, if they don’t use you.

Action steps

Here’s how you put the Service Selling System to action for you.

  1. Read this post again – this time taking notes on a piece of paper
  2. Write down the questions mentioned in this system
  3. In your next conversation with a client use the Service Selling System
  4. Leave a comment below to let me know how well it worked for you

Your Turn

Now it’s your turn. What did you think?

How will you be using the ‘Service Selling System’ in your business?

Do you see your product and service selling out faster based on this system?

Leave a comment below with what product of service you will be testing this system out on. And the results you expect to get from using this system.