10x Revenue with 1 New Sales Process... Here's How
Summary
TLDRThe speaker shares his expertise in scaling companies by focusing on the sales process, particularly the 'diagnostic sale'. He outlines a five-step process involving pre-sale questionnaires, credit card information gathering, understanding customer situations, identifying obstacles, and presenting a solution tied to overcoming these obstacles. He emphasizes the importance of secret shopping, anticipating objections, and implementing a diagnostic sales process to increase customer lifetime value. The speaker also discusses transitioning to a recurring revenue model and offers strategies for sales step-downs, demonstrating how these techniques can significantly increase a business's revenue and customer engagement.
Takeaways
- 💰 The speaker crossed $100 million in net worth by age 32 and sold a company for 46.2 million, attributing success to the ability to grow and scale companies.
- 📈 They purchased a business with 14 locations and grew it to 32 locations in a year, using a sales process called the 'diagnostic sale' to increase recurring revenue significantly.
- 🔍 The diagnostic sales process involves a pre-sale questionnaire to understand customer needs and pain points, which is crucial for tailoring sales approaches.
- 💡 The process also includes collecting customer information and credit card details early to streamline future transactions and increase the likelihood of sales.
- 🛒 The speaker emphasizes understanding the current situation and desired state of the customer, identifying obstacles, and presenting a solution tied to overcoming those obstacles.
- 🔑 A key step is 'secret shopping' the business to identify real-world customer experiences and areas for improvement in the sales process.
- 🎯 By focusing on offer and packaging constraints, the business was able to increase rebooking rates, which was identified as a significant opportunity for growth.
- 🤔 Anticipating objections, or 'killing zombies', is crucial to prepare the sales team to address potential customer hesitations before they arise.
- 🔄 The diagnostic sales process was implemented in a service business, transforming a transactional sale into a more customized experience without changing the core service.
- 💸 The implementation of the new sales process led to a 4X increase in Lifetime Value (LTV) progresser, demonstrating the effectiveness of the diagnostic approach.
- ⏳ The speaker suggests transitioning to recurring revenue models, such as payment plans or memberships, to increase customer retention and revenue stability.
Q & A
What was the speaker's first significant achievement in business?
-The speaker crossed $100 million in net worth by the age of 32 and sold their first big company for 46.2 million.
What is the speaker's current business strategy?
-The speaker buys companies at a lower price, grows them, and then sells them for a profit.
How did the speaker grow a recently acquired company from 14 to 32 locations?
-The growth was achieved by focusing on the sales process and implementing a method called the 'diagnostic sale' to increase recurring revenue across all locations.
What is the purpose of the pre-sale questionnaire in the diagnostic sales process?
-The pre-sale questionnaire aims to gather more information to arm the salesperson, understand the customer's needs and pains, and increase their awareness of the problem.
Why is obtaining the customer's credit card information early in the sales process considered key?
-Obtaining the credit card information early streamlines the sales process, as it eliminates the need to ask for it again when making a sale.
What is the significance of understanding the customer's current situation and desired state in the diagnostic sales process?
-Understanding the customer's current situation and desired state helps in identifying the obstacles and tailoring the sales pitch to overcome them, presenting a solution that aligns with the customer's goals.
What is the 'diagnostic sales process' and how does it differ from transactional and enterprise sales?
-The diagnostic sales process is a method that bridges transactional and custom sales, focusing on understanding the customer's needs and presenting a personalized solution. Unlike transactional sales that fit the customer to the product, and enterprise sales that involve complex decision-making, the diagnostic process tailors the presentation of a standard product to feel customized.
How did the speaker implement the diagnostic sales process in a gym business?
-The speaker used a pre-sale questionnaire to understand the customer's fitness goals and obstacles. They then presented a personalized plan focusing on fitness, nutrition, and accountability, and tied the price to achieving the customer's specific goal, offering a guarantee.
What is the importance of 'killing zombies' in the diagnostic sales process?
-'Killing zombies' refers to anticipating and preparing for objections or obstacles that potential customers may raise. This strategy helps to address concerns before they become barriers to the sale.
How did the speaker's approach to sales increase the average revenue per customer in a medical service business?
-The speaker shifted from selling one-off transactions to presenting a customized solution tied to the customer's desired outcome. By doing so, they increased the average revenue per customer from $200 to $800.
What is the final step in the diagnostic sales process as described by the speaker?
-The final step is transitioning to recurring revenue. This involves offering customers the option to prepay for a discount, setting up payment plans, or transitioning to a membership model to secure ongoing business.
Outlines
💼 Scaling Companies through Strategic Acquisitions and Sales
The speaker discusses their success in scaling companies and increasing net worth, highlighting a significant business acquisition that grew from 14 to 32 locations. They attribute this growth to a focused sales process known as the 'diagnostic sale,' which involves a pre-sale questionnaire to understand customer needs and a structured approach to presenting solutions and overcoming obstacles. The process aims to increase awareness of the problem, secure customer information, and tie the price to the proposed solution, ultimately leading to a 10x increase in recurring revenue across all locations.
📈 The Diagnostic Sales Process: Enhancing Business Value
This paragraph delves into the five-step diagnostic sales process used to transform a business with a focus on offer and packaging constraints. The steps include secret shopping to gather firsthand experience, information gathering to identify business opportunities, anticipating objections, and implementing the diagnostic sales process. The speaker shares a case study of a business where the implementation of this process led to a fourfold increase in customer lifetime value without changing the core service but by changing the presentation and packaging of the services.
🎯 Transitioning from Transactional to Customized Sales
The speaker explains the shift from a purely transactional sales approach to a more customized one, using the example of a gym membership sale. They describe how a traditional sale focuses on fitting the customer to the product, whereas a customized sale feels personalized. The diagnostic approach involves a pre-sale questionnaire to understand the customer's needs and goals, and then presenting a tailored solution that bridges the gap between the customer's current situation and desired outcome, which can significantly increase the average revenue per customer.
🛠️ Applying the Diagnostic Sales Process to Different Industries
The paragraph illustrates how the diagnostic sales process can be applied across various industries, such as weight loss services and medical aesthetics, to increase customer value and business revenue. The speaker emphasizes the importance of understanding the customer's current state and desired outcome, and then presenting a solution that ties directly to achieving that outcome. They also discuss the importance of packaging and the psychological impact of customer control in the purchasing process, which can lead to higher customer satisfaction and retention.
📊 Leveraging the Diagnostic Sales Process for Recurring Revenue
The speaker discusses the importance of transitioning to a recurring revenue model and shares strategies for increasing the customer's lifetime value (LTV). They explain the concept of 'sal step downs,' which involves offering different payment options, such as prepayment discounts, partial payments, and credit or third-party financing. The goal is to make it as easy as possible for customers to commit to the service, thereby increasing the likelihood of recurring revenue and customer retention.
🚀 Scaling Business Growth through Repackaging and Sales Optimization
In this paragraph, the speaker shares the remarkable results achieved by applying the diagnostic sales process to a business they acquired. They detail the significant increase in recurring revenue, from 9% to 60%, the introduction of memberships, and the increase in customer visits from one to four to six times. The speaker also highlights the substantial growth in monthly revenue from $20,000 to over $250,000 by focusing on repackaging and optimizing the sales process of existing services.
Mindmap
Keywords
💡Net worth
💡Diagnostic sale
💡Pre-sale questionnaire
💡Obstacle
💡Secret shopping
💡Offer constraint
💡Rebooking
💡Transactional sale
💡Custom sale
💡Recurring revenue
💡Sales step-downs
Highlights
Achieved a net worth of $100 million by age 32 and sold a company for $46.2 million.
Specializes in buying, growing, and selling companies, with a focus on enhancing sales processes.
Implemented a diagnostic sales process to increase recurring revenue by 10x in a business with 14 to 32 locations.
Utilizes a pre-sale questionnaire to gather information and understand customer needs.
Collecting customer information and credit card details early in the sales process is crucial.
Understanding the current situation and desired state of the customer is key to diagnosing obstacles.
Presenting the desired state and offering a solution to overcome obstacles with a clear pricing strategy.
Secret shopping as a method to understand the business from a customer's perspective.
Identifying offer constraints and opportunities within a business through data gathering.
Anticipating objections by 'killing zombies' to prepare the sales team for customer pushback.
Positioning the sales team as trusted experts using childlike curiosity to engage customers.
The importance of being willing to lose an argument to win a sale.
Moving from transactional to custom sales to create a personalized experience without changing the product.
Using a diagnostic approach to sell a gym membership by linking services to customer goals.
Applying the diagnostic sales process to different service businesses for scalability.
The strategy of transitioning to recurring revenue models to increase customer lifetime value.
Increasing the average revenue per customer from $200 to $800 by changing the sales approach.
The concept of sales step-downs, offering various payment options to secure the sale.
Achieving a 10x increase in recurring revenue by repackaging and applying a diagnostic sales process.
Transcripts
I crossed $100 million in net worth by
age 32 I sold my first big company for
46.2 million and the reason we're able
to do that is because we know how to
grow companies and so now I buy
companies at a lower price I grow them
and then we sell them and so I want to
talk to you about one of the companies
we just bought uh we bought them a year
and a half ago I think or a year ago uh
they had 14 locations so it was a chain
of brick and mortar and since then we've
gone from 14 to 32 locations and the
reason we're able to do that is because
we focused on the sales process and
through a process that I want to walk
you through something that I call the
diagnostic sale we're able to 10x the
recurring revenue of the business across
all the locations so before we get into
the nitty-gritty of the story let me
just walk you through the steps in the
diagnostic process first is we like to
have some sort of pre-sale questionnaire
which the purpose of that is to get more
information that arms the salesperson so
they know who they're talking to what
their pains are but from the sales
perspective for them they also increase
their awareness of the problem second is
we get their information in their credit
card which is key and I'll explain why
it lat
uh third is we want to understand what
the current situation is where are you
at today then we have your desired state
so where would you like to be at and
then what's the obstacle why aren't you
there and then finally once we have
these big three we present the desired
State and our vehicle to overcome the
obstacle and we tie our price to the way
that we're going to get them there and
then finally we give them an incentive
to prepay so here's the five steps that
we follow to actually get this done so
number one is that we secret
shopped the business so we actually
looked into it we went there by the the
way you should secret shop your own
business highly recommend doing it
you'll be horrified by what you hear
your sales guys say you're like I
thought we had a script what are you
even doing number two is from there this
is basically information gathering we
figure out what the constraint is okay
where do we think there's big
opportunities in the business now you
should think about yourself as your own
business consultant if you could buy
your business today and look at your
business what would be the no duh thing
that you would do now for this
particular business we thought that they
had an offer constraint which really
came down to packaging we had offer SL
packaging because fundamentally we're
not going to change the core of the
business we're not going to all of a
sudden start selling soap when you sell
HVAC like that's not going to happen
right so the core of the business can
remain unchanged it's how we're going to
package the services we deliver or that
the services we sell to a customer how
are we going to get them to perceive
what we're selling we gathered the data
we figured out the constraint was that
they should get way more re bookings
which I thought was an offer and
packaging issue which is we need to sell
the solution sell the goal and so number
four is okay if we assume that we're
going to make this new transition into
this new new offer new packaging we have
to anticipate so you we call it killing
zombies uh which is one way of putting
it you anticipate the obstacles or
objections that people are going to
throw at you ahead of time write this in
neon marker above your sales team which
is it's way harder to get someone to buy
after you presented the price because
now they're like he's trying to sell me
so we have to counter that before we
become salesp people in their mind we
are a trusted expert ideally if we're
positioned well and you should be that
way if you know what you're talking
about and I like to use the frame of
childlike curiosity I always tilt my
head I probably even did it
subconsciously just now you tilt your
head when you ask the question because
it's non-threatening you're like huh
that's weird what changed between then
and now just so I understand then they
can tell you rather than be like you
said that your husband says he supports
you you can't say that now you have to
buy doesn't work that way if you win the
argument in a sale you lose the sale the
only way that you win the sale is being
willing to lose being right and so the
fifth step and this is the ongoing step
is that you implement the diagnostic
sales process so it's implementation so
now that I just outlined the five steps
let me deep dive into the implementation
into the actual business and how we did
this with this particular business when
we bought them I spent four hours with
our director of sales and we outlined
the new sales process we wanted to
implement and as soon as we implemented
that sales process we 4X LTV progresser
meaning how much people paid us it went
from 200 to 800 so really big jump and
we the crazy thing about this is that we
didn't change what we delivered we only
changed how we presented it and so this
is the key of how we create value how we
scale companies how we grow companies
and many companies keep these things as
Secrets uh as their special sauce and I
just fundamentally believe that the more
we put out the more we get back and say
that's why I operate this way all right
so I will hold nothing back and this is
something I call the diagnostic sales
process now to be very clear the
diagnostic sales process is one of two
two different sales or maybe three
different sales processes big picture
that you can have in a business one is a
transactional sale all the way on this
extreme so on one side you've got
transactional
sales and on this side you've got
Enterprise sales which is like uh
relational sales like if you think about
like you're selling some big Fortune 500
company you have to get stakeholders
involved get budget approval there's all
that stuff and on transactional side
you've got like High Velocity sales
we're talking 20 30 minute sales a guy
who stands in of the car wash sells Car
Wash somebody sells gym memberships
transactional and then you've kind of
got like this Middle where you might
sell something that's a little bit
higher ticket but it's a little bit more
custom all right now what we did was I
took their sale from here a purely
transactional sale and moved it towards
custom all right now in a transactional
sale you typically fit the customer to
the product and so let's say that I sell
Pence all right so I sell Pence if
somebody comes in I'm going to basically
spend all my effort listening to what
they say they want and then telling them
how this pen fits their needs or I have
to basically say your needs are wrong
let me educate you more and this
actually solves all your problems right
and so those are pretty much the only
two approaches you can take in a
transactional sale now the advantages of
having this type of sale is that it's
really fast uh they tend to be lower
ticket in general uh and from an
operational perspective in the business
you don't need to personalize anything
and so you get the sales team and the
Sal sales process to basically Orient
everyone like a funnel down to one
solution and then you just make a ton of
these Solutions and you get lots of
efficiencies because you only have to
produce one thing this the custom sale
is a harder sale sorry easier sale to do
but harder on the operational side and
so the magic happens when you can
actually Bridge the product component of
transactional which you say okay we only
sell these types of widgets this is the
only thing we deliver
but I can do it in a way that feels
custom feels personalized all right so
I'm going to give you two examples and
I'll explain this one in a second this
chart that I have here which if you
could take your recurring revenue from
that to that just by changing how you
sell if you'd want to do that hang tight
we're going to break that in the process
so if I had because I did this in the
gym in the gym world too which is part
of why our gyms make more money so a
traditional sale would look something
like this someone comes in so this is
traditional and you say we have a
membership that's you know whatever $99
per month all right that's your
membership and you say our membership
has this this this and this and you want
that right because it's going to help
you accomplish all your dreams okay
sometimes you get people sometimes you
don't what I
do we do something called a
diagnostic and so the first thing is
that when the person walks in the door
we get them to fill out a pre-sale
questionnaire and so that's like an
application in a digital process but an
inperson process it follows the same
logic which by the way internet
businesses follow local businesses local
businesses can also model internet
businesses when you find out something
works in one place which I think has
been one of the big advantages of I've
had in business is I try and put it in a
completely different place and it often
works too if you understand the concept
and so we fill out a pre-sale
questionnaire now the pre-sale
questionnaire simply walks them through
all the reasons they walked in today and
it ask them the same question in
multiple different ways so it's like hey
like what brought you in today what's
the current problem you're doing dealing
with how long You' been dealing with it
if you had to quantify how much this has
cost you financially what would it be uh
if it continued for five years how much
worse would the situation be and so the
whole point is we're trying to agitate
tame we're trying to bring attention to
this problem and Elevate its importance
so that's what the pre-sale
questionnaire does now the second thing
is we get info and this is very key so
when someone comes in after that we say
hey I want to I want to set up your
account profile and so when you do that
you collect their information and this
is the key part you get their credit
card now you're like wait a second I'm
getting a credit card but I haven't sold
anything exactly and you do that so that
when you do sell something later you
don't have to ask for it now you get the
pre-sale they're like wow I really do
need this thing you say hey let me
complete your customer profile just
standard procedure no big deal all right
then you get their info now if they're
like well I don't want to give you my
credit card you're just like it's just
how the system works it's how we
complete
profiles and then they'll give it to you
all right so from there this is the this
is where the special the special magic
that's unique to each individual
business happens so in the weight loss
business I want to understand where
their goal at so you say what's
current and then four what's
desired where are you now where would
you like to be and then this one you ask
them say what's the
obstacle what's in between these two
things is the obstacle right current
I've got an obstacle getting the way of
I desired that's all we're asking in the
process now in weight loss and in most
businesses the thing the person thinks
is in the way is often not the real
thing in the way and that's because
they've never had this conversation
before they clearly haven't solved the
solution and that's why they're coming
to you and so you want to just get their
words more so so that you can explain it
back to them using the language they
gave you all right and so in the weight
loss world for example instead of
selling a membership I would say okay
well it sounds like you need these three
things Fitness Nutrition accountability
Fitness wise you need to work out X days
a week nutrition wise you need to eat
this food at this time and we can help
you meal prep the stuff so you got when
you go to restaurants you can still
stick on it and you need accountability
because if you don't if you do if if I
give you the best fitness plan and the
best nutrition plan but you don't show
up doesn't matter right accountability
is what makes the whole thing work great
finished nutrition accountability easy
three-step framework fantastic now this
is where it becomes diagnostic now most
customers and this is why this is where
the magic happens is
that even if you still deliver the same
thing so fundamentally when I switch the
sales process the gyms remain the same
they still have workouts they still have
nutrition help they still have
accountability nothing changed but how
we present it changes and so rather than
saying hey I'm going to sell a four-week
thing or a six week thing I say hey
you're
currently 200 lb Okay now what's your
high school weight she says I want to I
want to get to 140 you say okay cool you
want to get to 140 this is your desired
okay so we have a 60 pound difference
now what we found is that we don't want
people to lose more than pound and a
half to two pounds a week all right so
let's just be conservative and call it
one and a half so then I take out my
calculator and I say what's 1 and a half
time 60 which would be other way around
it' be 60 divid by one and a half which
is 45 okay so 45 weeks is how
long it's going to take us to take you
from 200 to 140 so you lose a pound and
a half a week it's going to take 4 5
weeks and so
six present
price in
relation to
goal so you say awesome so we currently
charge 99 bucks a week we can get you
there in 45 weeks which means it's
$4,500 and that means and for us I added
a a guarantee on the back end which
which said hey if you show up to the
workouts for next 45 weeks and you log
your food and you don't lose the weight
I'll keep working with you for free
until you do
so that means this is the translation
this is the key part in the script so
that means when you pay this $4,500 it
means that you can count that weight for
good you can put it out of your mind you
pay me this money we're going to get
there one way or another As Long as You
Follow the steps you're G to follow the
steps right great and so here you're
trying to sell 99 bucks a month or or
whatever this would be 99 bucks a week
if if I was doing equivalent pricing all
right so this would be like a
semi-private
program but by positioning it this way
I'm not selling a membership anymore I'm
selling exactly what they want and
putting a price tag on it and saying you
want to get to 140 it's going to take
this long and I'll guarantee that you
that you'll get there provided you
follow these
steps and then they say wow that's
awesome you say well if you
want I can save you a little bit of
money you want to save a little bit of
money and they're like yeah I want to
save a little bit of money well if you
prepay you can save 10%
today so I can save you 450 bucks you
want to do that that's what most people
do
great you want to you want to use the
card you have in
file done so that's that's the process
now I took this process and applied it
to a completely different service
business that we own that's a chain that
this is a little bit more Medical but
the concept still applied which is and
this is the key part is you have to
figure out for whatever it is that you
sell what the current is versus what the
desired is so if I were
uh a painter all right and I was
painting houses sounds crazy right say
hey so you currently have this thing you
want a completely painted house and so
the like now for them this is like more
us do it for you rather than uh
self-service like I'm going to have to
like they you're not painting your house
and them helping you so they're actually
going to paint the house so then we just
try and think how can we how can we how
can we sell to goal and break it into a
price that we tie to that
and so it' be like okay so we're going
to need four coats of paint and it's
going to take this period of time and
then at that point your your whole house
is going to be weatherproofed and so
that means that when you pay this price
that's what you're going to get by this
date and if we don't get it done by that
date I'm going to give you
this and that way we can relieve their
risk that it's not going to happen and
we tie the purchase to the outcome so
this particular business when I bought
it or bought into it
um it was a business that they had
really good lead gen and they have a
good product but they didn't have good
packaging and I saw the opportunity
because I knew that if I installed my
sales process into their business I
could make it make a lot more money and
so if you have the opportunity to like
Forex a business without opening new
locations you do that and so that's more
or less what we did so I actually wrote
down the new sales process took me four
hours so I wrote down the new sales
process and then I presented to the
management team and they were like wow
this is the most valuable thing we've
ever had happen to our business and I
said great so let me know when you do it
across all the locations and let's keep
buying and opening new ones and so 18
months later we have 32 locations and
the recurring Revenue in that time
period has gone up and the average
revenue per customer went from
$200 to
$800 from this one process and that was
because before this they were selling
oneoff transactions they were saying hey
we'll do this service for you so think
of it like botox or we're going to do
filler or we're going to do something
this one time and so rather than just
say sure give us a call when you want it
again which is pretty much what the
process was before this I say hey you
want to look a certain way you're not
here because you want filler you're here
because you want to look a certain way
so if I show this chart to you of faces
and filler
densities where where do you see
yourself on here currently now you let
them self identify you can't be like
look Pi you're ugly you can't say that
so you got to say where are you on this
chart and then they say this now in the
weight loss sale I got them to step on
the scale the scale called you fat not
me all right so maybe just point to the
third party not me so so so you get them
to pick how ugly they are all right and
then you say how pretty do you want to
be now everyone's going to say I want to
be super pretty but here's the beautiful
thing when they pick how pretty they
want to be they're the one who set the
goal and that means that the price came
from them and you know where I picked
this up was yogurt stores so one of the
things I thought was genius about like
Yogurt Land and things like that was if
if you go to a store and then they fill
up your stuff behind the counter and
then they say hey it's 8 bucks you're
like man what the hell this place is so
expensive but if they give you the cup
and you fill it up and you put it on the
scale you're like man I'm a fat ass same
pricing but because I had control over
what I picked I'm the one who's
responsible for the decision and so by
saying where are you on this chart and
again this is where the magic happens I
say current desired that's where the
thinking behind how I'm going to
structure a sale is where like that's
where the that's where the experience
that's where the expertise that's where
it comes in this is the process and
hopefully you guys can take this for
your business and think like okay what's
current what do they really want they're
not buying lip filler they're not buying
a painted house they're buying an image
in their mind of what they want that
house to signify or what it means to
them and this lady is not buying filler
she's trying to buy a certain look she
wants people to think about her a
certain way she want when people walk
when she walks in the room she wants
guys to turn their heads though because
she's probably getting a little older
they're not turning their heads as much
and she still misses that and she' pay
anything to get that so say you're ugly
now how pretty do you want to be we say
cool so for us to get you from here to
here it's going to take us 45 weeks it's
going to take us Botox filler and you
know plastic surgery whatever we're
going have to hit you with a pretty
shovel and bring you back to life all
right we're going to have to do this and
it's going to take this many weeks for
us to reverse this level of Aging or at
least take these Crow feed out or
whatever it is and so we tie where
you're at to where you want to go and
then our solution is only the vehicle
that delivers this outcome and so that
is the moment that you present the price
because they picked where they were
where they want to go and then you as
the expert explain the path to getting
there so they picked the before and
after and you just use your expertise of
this is what we found best to get people
to hear Who start where you're at and so
we found out that this opportunity
existed within this particular business
because I had my sales director secret
shop them so mind you this is Brick and
mor chain we have a lot of locations so
we could sneak our way in it's harder if
you have like a you know four sales guys
who do all the sales they'll just tell
the owner right so we wanted a secret
shop before we actually completed the
investment and so uh when he went in he
was I I asked him so I went through this
checklist I was like okay so did they
give you some sort of pre-sale question
he was like no I was like okay great I
like did you did they ask you for your
credit card or did they ask you for your
information or anything before you got
the service and he was like No And I was
like fantastic what else what else did
they do it's like did they have you set
you know pick uh where you're at and
where what your goal is he said yeah
they did have me uh pick where I was at
but not where I wanted to go so they
just had him pick okay how ugly are you
and he was like okay now again not
completely flawed I want to be really
clear here like this is a at 14
locations they're not they're not idiots
they had the pain we agitated the pain
they said listen this is how ugly you
are on this scale that we invented and
you're here you're a seven ugly great so
he checked this but he didn't get to say
where he wanted to be so then from there
he just went right into the service and
then when he came out he just gave them
the card to pay for the service and that
was it and he just walked out the door
and I was like wait so they didn't they
didn't actually like ask you to buy a
package or get into some membership or
anything and he was like well they tried
to upsell me this one product at one
point but this was the price point and
the price point was like 20 bucks or
something and I knew what the average
customer is worth which was like 200 at
the time I was like this like by the way
if you're going to do upsells you want
the price point to usually be usually be
five times more than the current price
because if you get 20% of people so
customers are fractal so we're going to
go into a little side quest here but
it'll be worth it for you since we're
talking about sales
so you've heard of 8020 right so you've
got 100 people right the top 20% you've
got the 80 underneath
right these are the people 8020 have
five times the spending power of these
people and so because of that if you get
20% of people to buy something that's
five times as expensive so let's say my
current thing is
$1,000 if I'm going to have an upsell I
want my upsell to be
$5,000 because if 20% take it then it's
20% time 5,000 which means I add $11,000
to my average ticket so I go from $2,000
or sorry $1,000 per customer to
$2,000 per
customer and so when I heard that their
upsell was 10% it'd be like having it'
be like my upsell is 100 bucks okay fine
maybe 20% take that so I I go from a
th000 to
1,20 who cares like what's like why
bother right and fundamentally again
smart business owners and they were
upselling product which means there's no
real delivery in a brick and Mort
service business so they could just hand
the product make the money and I think
they were using it more for commissions
for their staff to increase the average
pay which a different objective entirely
and totally fine but I was only looking
at this from how do I take customers who
are worth $200 and make them my goal is
to get them worth a th000 currently it's
$800 I'm GNA keep getting there until we
get to a th but I think that we can get
it to a th and
so we secret shop them number
one which by the way if you have a team
of people who are currently selling your
stuff secret shop them and then be
horrified by what you listen to on the
phone or what you see in person because
you have this beautiful idea of what you
think your sales process is and it's a
nightmare it's an absolute nightmare if
they remember half of it you'll be
stoked and so if you run an environment
especially in a in a lower wage
environment so if you're brick and
mortar you have a chain of of locations
and you have to take low skill labor and
teach them a sales process you've like
the the expertise in sales comes down to
how easy and simple you can make the
process and so that comes down to like
can I automate parts of the p uh the
point of sale so that they can't move
forward without doing this checkbox
right and by doing this chalk boox they
have to ask the question so it forces
script adherence now training sales not
into this video but you want to
basically repeat the process over and
over and over again until they're sick
of it until they say like yes Mom would
you like to have do you have your credit
you want to use the credit card on on
file like until they're saying it like
they can they can breathe it they can
think they can say without thinking
about it that's when you've maybe just
started to have a te a team that's
that's well trained now that we finished
these seven uh pieces of the diagnostic
I want to add one more bonus because
you're like wait a second so where's the
where's the recurring Revenue great
observation Andrew okay so so number
eight is transition to recurring all
right I remember this I'll give you two
separate stories that'll drive this home
so A friend of mine has uh a a recurring
membership that he sells and he sells it
at uh I think he sell at 300 bucks a
month and he couldn't get people stick
past three months and so he tried all
these different gimmicks and things and
he just couldn't crack three months of
LTV now that could have been a pricing
issue whatever so this is what he did he
stopped selling it at $300 a month month
to month and started selling as a
$110,000 program with 36 month of
Interest
refinancing and so when people bought
they were buying a $10,000 price point
but they got an amazing aming payment
plan and so he didn't change anything
about what he sold but that took his
average customer from 3 months to 8
months so we're talking about a $900 so
3 * 300 to 8 * 300 2400 that kind of
change in a business life-changing in
terms of how much money you can make the
second one was I had a different friend
who had a continuity program uh he was
an uh agency and what he did was he
realized he had turn in his business and
so he said you know people are way less
likely to turn out of a payment plan
same as is the other one then they are
out of a monthly recurring Revenue
stream and so what you call it to the
customer can affect the likelihood that
they pay but as far as the business is
concerned you just want payments that
are regular and all you do to take a
program and take it from Rec from a
payment plan to recurring in terms of
how it actually looks and feels is you
just put an automatic recurring at the
end of the program and so when someone
buys this big thing and you make a
payment plan and then it recurs into the
exact same price as the payment plan you
just move the pieces around but the
likely they stick is way higher and so
that's exactly what we did as the last
step in the diagnostic sales process and
I wanted to highlight this point for you
because I've done it in every business
and so we give someone the option to
prepay you can give if you want a little
bit more aggressive you get 20% off if
they prepaid today if you want to have
one step down below that which is what I
like to do you give them 10% off if they
do half down and they make the rest as
payments and if they still can't do that
then I take the whole thing and I spread
it over let's say 45 weeks and so I'd
say okay it's 99 bucks a week 99 a week
and there you go now they go from 99 a
week to 80 bucks a week if they prepay
the whole thing and they go from 99
bucks a week to 90 a week if they prepay
half and here's the key part is that
when we present the price you present it
at the highest rate so you present it at
the payment plan let me walk I'll walk
you through this because I think it's
important well I'm going to put it here
and so I don't have to flip screens for
you all right so you have your full boat
I'll say full interest
price so for us in our example is 4500
bucks all right 45 weeks times 99
roughly all right so this is our full
boat price we have our prepayment
discount in full which is minus
20% all right so for us it's going to be
minus what is that 900 yeah 900 from
there so that's 5600 sorry other way uh
3600
3600 if they do half
down you say I I'll let you save uh 450
bucks so 10% so 4050 Z all right so this
is
10% minus 10% that's- 20% now the reason
this is so important is think about the
alternative think about and this is what
most people do so listen to me Andrew
most people do this they present the
price as
$3600 and then they say oh well we have
payment plans that we have interest on
and so we do we do have 10% interest if
you can put half down and we have 20%
interest if you put uh nothing down and
you just go onto a straight payment plan
well which one would you rather buy if
on one hand you have a $4,500 price tank
which anchors you high and you say or
you can get a benefit for prepaying
today rather than you think about 3600
you're considering it and then they say
oh it's even more even though you're
just considering this tag guess what you
have to pay way more now be because you
can't afford it you have to pay more
Banks do it all the time and guess what
everyone hates Banks so if banks want to
fix their process Mr Bank maybe this
will work who knows anyway point is is
that this is how you present the price
because you get the benefit of a price
anchor and you get to be the good guy
for getting them to pay upfront rather
than the bad guy for them not being able
to so we're going to we're going to go
through step eight in uh in the more
transition uh process for the sale and
so I want to just walk you through step
downs and so this is super important to
understand from a sales perspective so
we'll call this sales
step downs and uh this is by the way a
preview for my next book coming out $100
million yeah anyways so so Sal step
Downs is one of the things that we have
so obviously the first thing we're going
to present is a prepayment all right
which is pay in full today prepaid y by
the way you've probably noticed from any
of my content I don't say paidon fools
and that's because that's a that's a
Salesman term not a customer benefit if
you prepay you get a benefit whereas Pon
full is like I got all the cash to front
good for me
and so I have trained myself because I
used to say pton fools piff skis P you
know whatevers pifs like all of that
stuff I used to do as a sales team sales
leader and then I also heard my team
saying that to customers be like hey if
you want to pay in full today like it's
just like kind of gross and so I prefer
to say like hey we have a prepayment
discount and so training that just
little Pro tip for you so number one is
prepay number two is we do
discount uh with
partial so this is this is the half down
oops half
down here you can also do in-house well
this is whatever sorry this is credit
card or third
party so if you have like most most
businesses that sell legitimate Services
have third-party financing solutions
that already exist and so I promise you
there is a banker somewhere who started
a business to service this Emerging
Market of whatever it is that you do who
says I'll bet you I can help Finance
transactions now the prices they charge
for that financing will differ based on
how risky your business is and so like
there's financing for casinos like if
you want to get if you want to get a
loan to go gamble more like there's
financing for that but they will charge
you a lot of money right and so like
that being the extreme on the other hand
if you want to finance a house there's
obviously a huge mortgage industry and
so from every step in between there are
Partners who will step in as third party
and take on that risk for you for a
price and so I prefer can I get the
prepayment because it's easiest and
fastest if not usually have a third
party that I set up so that my customers
can get financing if we don't move past
either of these two things then I try to
go with a partial with some level of
discount not as much as here but a
little bit and if they still say
no then I go for
continuity which is why don't we just
make a payment plan on the thing and in
this particular business because what
they were doing before was simply
rebooking people for another session of
service we just had this be the
automatic like everyone gets rebooked
and that would became that became an
internal saying like I like having
mantras uh within sales teams which is
like everyone buys something like
everyone buy something there's no reason
someone should not buy something and so
sure we'll get them a prepay maybe a
partial okay fine we'll do a payment
plan that's whatever call it you know
250 uh times four great that's our $
th000 that's our th000 plan that we're
getting people to buy and you pay 250
today and then three more times and you
can do it every other month if it's a
more uh intermittent service whatever
just match the payments to when they get
delivery and then finally if they're
like well I can't do any of those things
it's like cool let's just let's just
book the next time you want to come in
that's it and so this is the final of
the process in terms of in terms of the
step Downs that we might offer someone
we just walk through this whole process
and you're like wow maybe that's a lot
of work I have to use my brain power but
welcome to business but let me tell you
why it's worth it so these are the
actual stats and I put the numbers
without the names to keep it nice open
loop for you so number one is that they
had 9% of Revenue uh that was recurring
within this product line all right so
they had 9% that was curring after we
implemented this
process
60% they took this 9% to 60% of this
product line within the company so
awesome number two they had basically no
membership at all because they just
weren't it wasn't even an option not
really and we were to push that to 30
that's a 30
30% into memberships this included
payment plans this is just
memberships and then we went from
getting one additional extra visit on
average per person meaning two to
getting four to
six visits per customer by introducing
this sales process and from a money
perspective we went from $220,000 when
we uh bought the business so mind you
this business made a lot more money than
this single product line or this service
line but this is where I want wanted to
invest my time because I thought there
was a huge opportunity here because I
saw from the secret shoer from the
constraints I thought this was a big
area of attack and so they're only
20,000 a month which business the size
is not a lot and then however many
however we dots this later over
250,000 per month in
added and it continues to grow and this
compounds and that's the that's the
beauty of this type of sales process and
repackaging of what someone already
sells and so we went from 9 to 60 0 to
30% on memberships from one visit to
four to six visits and from 20 to
250,000 so we more than 10x the
recurring revenue of this business by
following a diagnostic process rather
than just selling some traditional
one-off thing I have two books on Amazon
$100 million offers $100 million leads
you can go check them out uh if you have
are completely poor uh my podcast has
them for free too you can check those
out it's all free enjoy
浏览更多相关视频
"My business has stopped growing..what should I do?"
Tecniche di vendita: non presentare MAI il tuo prodotto o servizio!
Triplica le Conversioni e Taglia i Costi di Marketing del 75% [Subito]
Enterprise Sales | Startup School
10 Marketing Strategies Guaranteed to Grow ANY Business (PROVEN & PROFITABLE)
This Formula Makes My Sales Grow On Autopilot (use with clients)
5.0 / 5 (0 votes)