We’re talking about the 4 shifts you need to make in your aging in place business so you can accomplish your goals (more money, time, impact, etc.). Go here to read about the first shift.
This second shift is a little controversial.
Transform your offers
We make money because we have an impact on the people we serve. When we make an amazing impact, we can earn more for it.
If you want to make more, then you’ll have to transform what you’re offering in the marketplace.
How to transform your offers
The first question need to ask yourself is:
What are the results you’re getting for your clients?
If you are a Remodeler or Occupational Therapist who helps people stay longer at home? Are you showing them how to retain their freedom by being safe, healthier and reducing the chance they may have to move to a facility, or even lose their life because a fatal accident?
Are you a senior move manager or downsizing expert who works with families as their parents move from single family to a shared living situation? Or, go from a big house to an apartment or condo? Do you help alleviate the fears these adult kids have for their parents?
Or, some other type of service where you’re there, boots on the ground making sure things are taken care of, because the family lives far away and can’t be there? Do you act as an advocate?
I want you to understand something … people don’t come to you to learn how to do something. They don’t come to you because they want more information.
They come to you so they can achieve a specific outcome.
They may not even know what that outcome is, just that they need to do something.
The business owners that can create offers that lead to the right outcomes for people are going to have companies that thrive. Conversely, the ones that don’t deliver will not realize the kind of success you probably want.
What’s the outcome worth?
Once you know your outcome, the next question to ask yourself is, “What is it worth?”
Your price should be based on the value of the outcome that you deliver. Not what the competition is charging. Not what you think people will pay.
Now, before you say “Mark, the transformations I provide my customers is worth ALOT! My clients are not going to pay me that kind of money.”
That’s probably true. There’s a good chance that customers like the ones you’re serving now will not pay you what you need to make.
You need reach some different and more affluent clients. (You probably should do that sooner rather than later.)
Now, I’d never tell anyone to not help people who aren’t able to pay as much as you need. That’s a personal decision, and likely will be motivated by your deep desire to help the people you serve. But think about this:
Would you rather put your time and effort into serving the same people you are now, making the same money you are now and not achieving your dreams?
OR
Would you like to take that same time and effort to reach the people that can generate much bigger margins for you, give you some breathing room and get your company on a much firmer financial foundation?
If you chose the latter, when you have higher paying clientele, you have options.
- You can help more people.
- You can be more generous.
- You can have more time and freedom.
You could literally get to the point where choosing to do that low-cost or philanthropic work is easy. Which leads to your company having a strong financial foundation and your family, employees and/or subcontractors being taken care of.
What is it worth to have the outcome?
Again, your price should be based on the value of the outcome that you deliver. Not what your competition is charging and not what you think people will pay.
What is it worth if you are …
- Helping people stay safe at home so they don’t get hurt and have to go into assisted living?
- Helping a family take care of their loved one or helping make someone’s situation better when it isn’t working for them?
- Serving older adults in a way that helps them improve their lives?
If you are coming in with real solutions that show people how to make their home, caregiving, financial or life situation better, what’s that worth?
That’s worth a ton just for peace of mind and easier living in my opinion.
If you really think about it, you may realize you haven’t been thinking about your business the right way and its held you back.
Isn’t charging more for a project the right thing, if in doing so you have the time, resources and focus to deliver the exact transformation they need?
Why people don’t charge premium prices
There’s really only two reasons I’ve found that people don’t charge higher prices.
- You feel guilty about it
- You think that no one will pay it
It’s a myth that charging high prices is bad for your aging in place customers. (My clients have proven that to be true.)
When you charge a premium price, you get much better results.
And, people that want first-class service, the highest quality workmanship, the best results … they’ll pay for it if they believe it will transform their lives.
What happens when you do
Premium pricing works for a few reasons.
It reflects the true value of what you do – If you’re delivering on the transformation you promise, it will be a life-changing experience. Charging a low price for something like won’t make sense to them. (Or, make sense for you.)
When clients are investing at a premium price – They also show up committed things done. How much better would your results be if your client’s showed up 100% committed.
Charging low prices
This is a big pain point for a lot of the business owners I’ve talked to. When you’re charging low prices:
- You’re setting a lower standard.
- People don’t believe in the transformation.
- They aren’t committed.
Early on, I was charging low prices and it was really frustrating. I would find a handful of clients, sell them a low-priced service and no one would do anything.
They loved the work I proposed or the information I provided. They would say, “Yes, this is great.” Or, “This information is incredible.”
But, when I’d ask what they did with it, they’d say, “Oh, I’m going to get to it. I’ll have to get back with you.” Or, on proposals, “Can we shave off a few hundred dollars? This is a little steep for me.”
Or, they’d show up and we’d talk, we’d work our way through some issues they were having. Then, the next time we got together I’d ask, “How’s that problem solving we talked about going?” Crickets. They did nothing.
They didn’t believe in the transformation and I don’t do that anymore.
So if that’s a problem for you, charging premium prices is a is a big part of the solution to fixing it.
When you charge higher prices, clients are reassured and confident, because they’re paying a premium price. Those high prices reassure your clients that you are the best.
If a client has a big problem in their life and the future they’ve imagined for themselves is as stake, what do they want?
What will they put their faith in? What’s going to reassure them?
Will it be when somebody stops by to drop off information and talks to them for 20 minutes about something that costs $40,000 that they’re not even sure will meet their current and future needs?
OR
Will it be the thing they actually believe will give them an extra 15 years or more at home for $120k?
I’ll be honest … if I’m willing to spend that kind of money, I really and truly believe that it’s going to work and it’s going to get results.
Hitting your goals
For a simple example, let’s say your goal right now is to get to $600k in revenue. If your primary offer is for $25k, you have to sell two a month. But, if your offer is $50k, you’ll only have to sell one. Just that having a process to get you premium pricing works … it’s just math and grit.
It’s not that you’ll never have to do work at a lower price again. You’ll do that lower-cost work along the way to establishing a reputation as the premiere company for your service. (That is, until you can command premium pricing all the time.)
Then, if you want to do work for people who can’t pay the premium price, you have the option.
You’ll literally getting to the point where you’re:
- Working with fewer, but higher quality and higher paying clients.
- Making more money.
- Not worrying about supporting 20 new customers a month for a pittance. (Rather, just a few to hit your income goals.)
- Giving your client’s world class support. (You have time now to take incredible care of them.)
Serving fewer clients, making more money, providing better service.
Clients are showing up and ready to work with you. (And, they’re loving it!)
Definitely something to think about for you and your company.
