The GASP & Teaching High Ticket Sales Ep 147

Summary Notes


In a discussion on sales strategies, the host emphasizes the importance of setting high price anchors to elicit a 'gasp' from customers, as demonstrated by Nick Elliot, a seasoned sales professional at Lady Boss. The host explains that salespeople often undersell because they project their own financial limitations onto potential buyers, but by aiming for the initial shock of a high price, subsequent offers seem more reasonable, increasing the likelihood of a sale. The host also addresses the psychological aspect, asserting that a higher personal investment from the customer correlates with greater commitment and better outcomes. The key takeaway is to sell the value of the service and encourage salespeople to help customers invest significantly in themselves for maximum benefit.

Summary Notes

Understanding Sales Psychology

  • Sales is a favorite topic and is associated with the speaker's expertise.
  • The difficulty in selling higher ticket items stems from salespeople projecting their own financial limitations onto potential customers.
  • Salespeople must understand that their "trench knowledge" is valuable to those who lack it.
  • Underestimating the value of one's expertise can lead to downselling and missed opportunities.

"And so when you were training a new salesperson, or even whenever you're existing trainer to sell, one of the difficulties is selling higher ticket."

This quote highlights the challenge in training salespeople to sell expensive items, emphasizing the need for a shift in perspective.

"We have trench knowledge that other people don't know. That comes naturally to us because we have been doing this for such a long time, and we underestimate how valuable the things that we understand are to people who do not know them."

The speaker emphasizes the value of specialized knowledge ("trench knowledge") that salespeople possess and how it is often undervalued when selling to those without this knowledge.

Sales Techniques and Strategies

  • The concept of "selling out of one's own wallet" is a common obstacle for salespeople.
  • Sales trainers need to convey the value of products or services to salespeople first, so they can confidently sell to others.
  • The story from Nick Elliot illustrates a successful high-ticket sales strategy.

"I could never afford this, I would never pay for this. And therefore, this person won't make that, they won't buy."

This quote reflects the flawed assumption salespeople might have, thinking that if they can't afford something, neither can the customer.

"If the person doesn't gasp on the phone at the price, you did not go high enough."

This statement from Nick Elliot's story serves as a sales tactic to set high price expectations and overcome the fear of customer shock by making it the goal.

Leveraging Customer Reactions in Sales

  • The "gasp" technique is used to establish a price anchor and elicit a strong emotional response from the customer.
  • Training new salespeople to aim for the gasp removes the fear of pricing products too high.
  • Making the customer's shock the objective is a psychological tactic to normalize high prices and potentially increase sales.

"They would tell their new prospects and their new recruits, if the person doesn't gasp on the phone at the price, you did not go high enough."

This quote explains the strategy taught to new salespeople to ensure they are setting the price high enough to create a significant impact on the customer.

"It was fucking brilliant. And so I am telling you, if you make that the objective, wh"

The speaker admires the ingenuity of making the customer's gasp the objective in sales, although the quote is cut off before completion, the context implies that this approach is highly recommended by the speaker.

Price Anchoring in Retail

  • Price anchoring is a sales strategy where a high initial price sets the expectation for subsequent pricing.
  • The initial high price makes other prices seem more reasonable by comparison.
  • This tactic can lead to customers spending more overall due to the perceived value after the initial price shock.

"And I was like, well, how much is this thing? And they're like, the jacket is 12,000, right? And so they started me there, right?"

The quote illustrates the initial price shock experienced by the customer upon hearing the high cost of the jacket, which sets the stage for price anchoring.

"And at that point, I had been price anchored at twelve and I literally felt like it was a good deal walking out for like $3,800."

This quote shows the effect of price anchoring, where after seeing the high price of the first item, subsequent lower prices seem like a bargain.

Spending Patterns Post-Price Anchoring

  • The initial high price can break the customer's mental price barrier, making them more willing to spend.
  • After the initial high-priced item, other purchases may feel insignificant, leading to increased overall spending.
  • The speaker's personal experience with price anchoring led to a significant amount of money spent in a single shopping trip.

"But what happened is that after that 1st $12,000 price point anchor, everything else felt like a rounding error, really, like, everything else felt like nothing."

The quote demonstrates the psychological impact of price anchoring, where all subsequent expenses seem minor compared to the initial anchor price.

"And I think I spent total of like $10,000 in the day between Leila and I going to some of the nicest shops and Hugo Boss and getting nice belts and all this sort of stuff, right, to redo."

This quote provides an example of how price anchoring led to a high total expenditure, showcasing the effectiveness of the strategy in increasing customer spending.

Price and Perceived Value in Fitness Sales

  • The concept of price anchoring can be applied to sales in various industries, including fitness.
  • A high initial offer can make subsequent offers seem more affordable.
  • Sales strategies that involve price anchoring can result in higher average sales and more substantial upfront payments.

"And so, to the same degree in fitness, if you can make that big sale or at least get the gasp, go for the gasp up front, then everything after that will seem significantly less expensive, and you'll be able to collect more money up front, you'll be able to get the person more invested, and you'll ultimately be able to close more people at a higher average price."

The quote connects the retail experience of price anchoring to fitness sales, suggesting that a similar strategy can lead to higher sales and more engagement from customers.

  • There is a belief that the amount paid for a service correlates with the level of engagement and value perceived by the customer.
  • Higher-priced services are thought to lead to greater customer commitment and attention to the service.

"So the second piece to this is a belief that you have to embed inside of your salespeople or yourself that the more someone pays, the more they pay attention."

This quote encapsulates the idea that financial investment is directly tied to the level of attention and commitment a customer will give to a service or product.

Preframing Sales Approach

  • Approach sales by considering the maximum personal investment a client can make in themselves.
  • Focus on helping clients invest in themselves rather than closing a sale.
  • Correct energy and tonality are essential to avoid a combative tone during sales objections.
  • Overcoming obstacles and fears is part of guiding clients to make an investment in themselves.

"Don't think about it as a price thing. Think, how much can I get this person to invest in themselves?"

This quote emphasizes the mindset shift from selling at a price to encouraging personal investment in the client's growth or improvement.

Sales Strategy and Client Goals

  • Sell to the client's long-term goals, not just the immediate program they inquire about.
  • Short-term programs may not solve the client's actual problem.
  • Create an irresistible offer with guarantees and same-day discounts to upsell higher-priced programs.
  • Treating all clients equally and being an 'equal opportunity salesperson' can lead to more sales.

"You can sell them to their goal. You do not need to sell the specific program that they came in for."

This quote suggests the importance of identifying and selling to the client's long-term goals rather than the specific short-term program they initially show interest in.

Price Point and Value Extraction

  • A $600 price point is generally acceptable for impulse buys, but 20-30% of clients could pay more.
  • Tailor the price to match the client's goals, affordability, and willingness to invest.
  • A higher investment level may be more appropriate for wealthier clients to ensure they value the service.
  • It's better to aim high and allow for negotiation than to undersell from the start.

"And so if you want to maximally extract the value from the people who are walking in the door, you need to match goal to the promotion, to the prospect and the price that that person can afford and the ultimate investment that they're going to make."

This quote highlights the strategy of aligning the client's goals with the appropriate program and price point to maximize the value extracted from each sale.

Handling Rejections

  • Do not fear rejection when proposing higher-priced options.
  • It's acceptable for clients to say no to more expensive offers.
  • The act of offering higher investments helps in price positioning.

"Don't be afraid of having the person say no to the big one. That's okay."

This quote encourages salespeople not to shy away from offering high-value options to clients, as rejection is a natural part of the sales process and can be beneficial for establishing price expectations.

Sales Strategy: Upselling and Downselling

  • Begin with presenting a high initial price to gauge customer reaction.
  • The "gasp" indicates whether the price was high enough.
  • If there is no gasp, it suggests the price could have been higher.
  • Upselling involves starting with a high price and then adjusting based on the customer's ability to invest.
  • The goal is to maximize the front-end ticket value.

"And when you do it this way, you can two or three x the average front end ticket that you can have."

This quote emphasizes the potential to significantly increase initial sales revenue by starting with a high price point.

Convincing Salespeople of Core Beliefs

  • Salespeople must believe in the value of the product or service and its pricing.
  • They should understand that higher investments by customers can lead to better long-term results.
  • Salespeople need to convey that solutions are tailored to genuinely solve the customer's problems over an appropriate timeframe.

"After that, you have to give them the conviction that this is helping this person invest more in themselves, which will ultimately yield the best result for them in the long term."

The quote highlights the importance of instilling in salespeople the belief that higher customer investment is not just beneficial for sales but also for the customer's outcomes.

Addressing Customer Affordability Concerns

  • When a customer cannot afford the high price, offer a shorter duration of service as a downsell.
  • Maintain the intention to solve the customer's initial problem, even with a lower-priced offer.
  • The downsell should still align with the goal of providing a solution to the customer's issue.

"If someone then is like, I really can't afford it, blah, blah, blah, blah, then sure shorten the duration of time that they're coming in for, and then you can ultimately downsell the thing that they walked in the door for..."

This quote suggests a strategy for handling affordability objections by adjusting the service duration while keeping the focus on solving the customer's problem.

Sales Philosophy: Investment Equals Commitment

  • Higher financial commitment from the customer increases their level of investment and likelihood of success.
  • Convincing customers to commit to a longer period can lead to life-changing results.
  • Salespeople should believe in the transformative power of the product or service over time.

"And if you can extend that over a period of time, you know and I know that in 33 weeks, in 36 weeks, we can genuinely change someone's life..."

This quote conveys the idea that a longer-term commitment from the customer can have a profound and positive impact on their life.

Sales Approach: Selling from the Customer's Wallet

  • Salespeople should avoid projecting their own financial limitations onto the customer.
  • They should focus on the value and investment appropriate for the customer, not themselves.
  • This approach prevents underestimating the worth of the product or service being sold.

"And so that should be your belief going into it, and that should be the belief that you convict your salespeople with so that they don't sell from their own wallet and they sell out of the wallet of the individual..."

The quote advises that salespeople should prioritize the customer's perspective on investment and value rather than their own, ensuring that the customer's needs and capabilities are addressed.

Continuous Improvement of Sales Processes

  • The speaker is committed to refining their sales scripts and training.
  • They plan to consolidate their sales training into a more focused and efficient format.
  • This ongoing process is aimed at improving sales performance and outcomes.

"I'm remaking our whole sales training and making really short and then deleting every everything else into one central sale."

The quote indicates the speaker's intention to streamline the sales training process for better efficacy and focus.

Encouragement and Engagement

  • The speaker encourages engagement with their content through likes and tags.
  • They express enthusiasm for their work and the improvements they are making.
  • The closing remarks are aimed at fostering a positive and supportive community.

"So have an amazing day and lots of love. Drop a like and tag."

This quote serves as a friendly sign-off, promoting interaction with the audience and sharing a positive message.

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