Tool #3 – Locking Customers In With Yanik SIlver
How to Build an Impenetrable “Force Field” Around Your Customers So They’ll Only Buy From You And Never Even Look At A Competitor!
Let’s get serious.
There are lots and lots of competitors for nearly every product or service out there. You don’t have many monopolies out there. (I should know, my father-in-law is an anti-trust attorney for the Justice Dept) : )
This month’s tool is going to build an almost impenetrable “force field” around your customers so they’ll be practically forced to only give you their business. How about that? Sounds good, right?
You can use this tool if you’re in a cash crunch or even to make your business look better to potential investors or buyers. It’ll smooth out your cash flow! You’ll love it!
First off, I want to give you one of the simplest ways to increase your profits (and lock in customers). I was going to just give you this tool by itself but I’d probably get people emailing me back saying it’ll never work (oh ye of little faith). Here it is….
“My customers already complain about my prices and this Yanik character wants me to raise them. Humph! There’s no way I can raise my prices – if I do that all my customers will go to my competitors!”
Listen, I’m serious. Stay with me for a moment.
Most business owners are much more emotionally attached to their prices than their customers are. Your pricing is more elastic than you think (and if it’s not then you have a much bigger problem).
Let me tell you about a simple test I did with my original online product (instantsalesletters.com). Originally it was selling for $29.95 and doing pretty well. I increased the price to $39.97 (a 33% increase) and orders went down .2% – which still left me with more money than the lower price. I immediately added additional profit for zero work. In fact, I’m thinking of experimenting with that price again.
A price increase is an instant way to increase your profits. And trust me, you don’t want to have low-price as your only competitive advantage. Just take a look at Kmart. It’s a lot easier if you have lots and lots of margin built into your product or service. And there is always a place for people selling at “Neiman-Marcus” prices.
Don’t make the mistake of setting your price by your competitors. A lot of people go out and do a little spying on their competitors than go back home and set their price right in the middle (or worse at the low-end). Remember, you set the rules. You get to play the game of business however you decide. And don’t make the other big mistake of setting your price based on cost.
How much do you think it costs Bill Gates to produce a CD-rom with software burned on it? I’d say .25 cents in volume (probably less). You don’t see him selling it for .50 cents or $1.00. That’s because your price should be based on the value you provide.
Here’s an example. I don’t want to embarrass one of my friends so I won’t mention his name. But his business is driving unique visitors to websites (not hits or clicks) and his pricing is the same across the board for anyone. But the truth is all visitors are not created equal. If he’s sending qualified traffic for people paying $4.00 on Overture for the term “hosting” he shouldn’t be charging them the same as people buying low priced keywords.
How about Airlines? Do they charge you the same amount if their plane is full? Nope!
Anyway, back to my original premise of raising your prices. I’m going to provide with a simple example right here you can use to raise your price, not alienate your current customers and lock-in business for the future. Whoa!! Pretty cool, right?
Dear {customer},
Here’s good news and bad news…
The bad news is that due to the skyrocketing costs of {raw costs/supplies/etc} we are forced to immediately increase our rates. We’ve been holding off on raising our prices as long as possible. In fact, we haven’t raised our prices since <19xx>. And in that same time we’ve had <5> increases in just the cost of a postage stamp. This price increase will assure you continue receiving the high standards of services you’ve come to expect.
But now here’s the good news…
As a valued customer we wanted to give you advance notice of this price increase and give you a way to “lock-in” the old discounted rate in the future.
Here’s how this works.
Currently, our new rate for ______ is $ _____. But if you purchase your {tax return/6 months of supplies/etc} in advance I’ll give you the old discounted price of $ ___. That’s a xx% savings. You know when {tax time/next month/etc} comes around you’ll need this anyway – so why not grab a bargain now?
Please give our office a call at xxx-xxxx to lock-in these savings before the price increase takes effect. Or, if you have any questions please feel free to contact me directly.
Thank you for your continued business.
Sincerely,
XXXX
President
Just about any type of business can use this type of letter immediately – but don’t worry I have lots more for you this month…
Now please note: If you are hesitant about raising your price than you need to think about providing more value to your customers. If you increase your value there is no reason why you shouldn’t increase your price.
Customer “Force Field” Concept #1: Continuity
Using a concept called continuity or TFN (till further notice) or good till cancelled is the secret key to locking-in profits in advance and that last almost forever. And it’s consistent profit you can depend on each and every month.
How about a few examples: If you get spring water delivered to your office or home, you may already have been exposed to this concept. Once you have initially signed for water service, your delivery man simply brings you a new supply of water every month, until you say stop.
Or have you ever seen the record club promotions where you buy 10 CDs for a penny or the book clubs that sell you 5 books for a $1.00? Do you really think they make money on that initial purchase?
Absolutely not.
But once they get you in the club you are put into a program called TFN or good till cancelled agreements. They will keep sending you records, books, whatever every month. That’s how they make all their money.
Did you ever see the infomercial they have for beauty creams or acne creams? Maybe you never realized this but most infomercials do not make a profit on the initial sale. They are simply designed to capture a large database of names for continuation programs and other “back-end” sales.
Once you buy some “glop” from the infomercial you are set-up on this TFN program, meaning you will continue to get your quarterly or bi-monthly supply of “glop” until you say stop. And it will automatically be billed to your credit card.
This uses people’s natural laziness to accumulate huge profits and lock-in sales.
Why not do the same thing in your business?
Now you can turn one-time purchases into on-going streams of cash. It’s easy and I’m going to show specific examples you can swipe for just about any business.
A good strategy to use is to add an extra incentive for people to sign-up. Like the first month free as long as they sign-up for at least a year if they like it. Or the first month is half-off. The options are endless but you should include some sort of powerful incentive.
Think about how powerful this system is to your bottom line. Now instead of waiting for clients/customers/patients to come back when they need something (and hoping they don’t put it off or even go to someone else), you have now guaranteed yourself a continuous flow of revenue.
Below are several universal examples and templates you can immediately plug into your business. These can be delivered in many different formats.
Professional Selling Products
If you’re like most of our customers, you’re too busy tackling tough projects, keeping everything organized, and dealing with that knucklehead in your department to remember about your company’s supply of {your product}.
It’s just too easy to forget ordering {your product} until you desperately need it. And that’s why I’m writing. I think I’ve come up with a solution that’ll be a benefit for both you and me, plus give you one less thing to stress over.
Let me explain.
Instead of taking time from your busy schedule to call our company with your standard order of I’d like to set you up on our new. Here’s how the program works: Every month you’ll be sent a month’s supply of {your product} for only {$ xxxx.xx per month}. (That’s a savings of {10%} off the regular price you currently pay.) This amount will be conveniently billed to your account when your shipment goes out. But don’t worry, you can cancel anytime or change the shipment frequency.
Now here’s the reason why I’m willing to do this: First, if I get your commitment for regular monthly shipments I can more accurately anticipate my inventory. And since I can forecast my stock requirements I can buy in greater volume – therefore saving you and me money.
Remember, there is never any obligation to continue on this program. It’s simply a convenient way for you to have one less thing to worry about every month. Plus, as always, you are backed by our no-questions asked, 100% satisfaction guarantee. If you’re not completely satisfied with {your product} you can return it for a full refund of every penny.
Since I’m only trying this out as an experiment I will need your answer right away. Even if your response is no, I’d appreciate your candid feedback.
So before you put this letter down and forget about how simple and easy it’ll be to get your shipment of {your product} regularly delivered to you, without the hassles and headaches of ordering it over and over again — call my office at xxx-xxxx and ask for extension 23.
As always, thank you for your continued business.
Sincerely,
{Your Name}
P.S. Now you can get your shipment of {your product} automatically shipped to you exactly when you need it and you also save {10%}!
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Service businesses have the opportunity to use this concept just as easily – here’s a great example of a local carpet cleaner doing this:
http://www.kingofclean.com/nobrainer.htm
! F R E E !
Six Months From Your Next Cleaning
(available in our service area only)
After being in business since 1996 and listening to my clients’ concerns and comments, I have learned some important things. I’ve learned that they are very proud of their home and want to keep it looking beautiful all the time, with minimal effort on their part. They want a healthy indoor environment. They want the very best in customer service and attention to detail. And they don’t want to worry about their carpet, they just want me to take care of it for them.
By taking my clients’ needs, wants and concerns into consideration, I have created a fantastic program that will offer the absolute best in client service and home maintenance. I have called it the “No Brainer” program because it is so simple. How would you like to get a complete FREE cleaning service every year? Well, now you can, and it’s so simple.
Here is all that’s required of you to participate:
1. You only have to pay for carpet protection at your 6-month cleaning
2. You are asked to commit to your 12-month cleaning at the time of your acceptance into the program.
That’s it, there’s nothing more to it. No teeny tiny print, no other requirements, and no lengthy contract to sign. Now you’re probably asking yourself, “How can Kevin possibly afford to offer a program like this?” I’ll tell you…
How I Can Afford To Give You A FREE 6 Month Carpet Cleaning (and not go belly up)??
I’ll let you in on a little secret: just like when you wait twice as long to mop your floors, it’s much harder to get them sparkling clean again. It takes three times as long, and a lot more elbow grease too! You might even need to get down on your hands and knees to scrub those stubborn spots, spills and stains…
Well, your carpet is no different! It’s much easier to for me to get it clean and keep it that way for you, by giving you a FREE cleaning in six months.
THE END RESULT: My cleaning time on average will be cut in half, which means I’ll be saving money and time. Also, cleaner carpets will need much less cleaning agents to get the job done, so I’ll be saving money this way too.
It’s A WIN! WIN! Situation For Both Of Us
The truth is we’ll be helping each other out. You’ll be getting FREE cleaning, maintaining your carpet properly, enjoying a significantly healthier home and protecting the investment you have in your carpet! And in turn, I will have you as a happy client for many years to come, which gives both of us security and peace of mind! I think we could all use a little more of that.
Here are the “rules” of the program. They’re really simple:
1. You must commit to a 12-month cleaning at the time of your acceptance into the program
2. Dirt Busters will call you at the beginning of the 12th month to schedule your cleaning
3. You must redeem your 6-month cleaning voucher in the 6th month
4. Dirt Busters will clean the same areas on the 6-month cleaning as we did on the initial cleaning
5. You will pay for carpet protector only @ .20 cents per square foot on your FREE 6-month cleaning
6. No furniture will be moved at the 6-month cleaning
7. Dirt Busters will require full payment of the 6-month cleaning if the 12-month cleaning is not completed as scheduled
8. You are asked to use a credit or debit card for payment (Visa, Mastercard or Discover)
9. 72-hour cancellation notice is required on all appointments.
If you can see the obvious benefit of such a service, all you have to do is fill out the brief form for my records. There is no lengthy and binding contract to sign.
My technician will then give you a voucher that will entitle you to your FREE 6-month cleaning. All you need to do is mark your calendar or planner so you’ll remember to call my office in your sixth month to schedule your appointment. That’s all there is to it. I will take care of everything else for you.
* * *
As you can see this is easily applied to any type of service business to lock customers in advance. You can even hire a part-time person to call up your existing customers introduce them to your service. And don’t forgot about having all your in-field technicians either hand out a letter similar to the one above or actually explain the concept when they are with the customer.
* * *
If you’re selling information products – it’s a good idea to set-up some kind of “tape-of-the-month”, “video-of-the-month”, “lesson-of-the-month” or whatever to get people subscribed and paying you each and every month.
One great way to get lots of members quickly is to give away a free trial or to have people sign-up for just $1. Here’s the pop-up window we use when people purchase the Instant Sales Letters package:
As our way of saying “thank you!” for placing your order with us, we’d like to give you one free month of our new Instant Marketing Toolbox™ Gold membership at absolutely no cost to you (that’s a $29.95 value FREE). Instant Marketing Toolbox™ is for people who “just don’t have enough time to do all the marketing they should”. Here’s the lazy way to put your marketing on autopilot with practically ZERO work on your part! Each month you’ll get:
It couldn’t be easier to quickly and easily growing your business…and your first month is absolutely free! Click here now to get started or Click here to find out MORE details about the |
In fact, you can even make the free trial a bonus to your main product. Then if people don’t cancel within the free trial period you can continue to bill them. This is a great way to incorporate a service into your product.
I’ve used a $1.00 intro for a joint-venture we did as a special “surprise gift” to people who purchased on of our products. Here’s how it looked:
| Surprise Bonus. At Surefire Marketing, we believe in over-delivering on our promises. As such, we have arranged for a special bonus for you. You are now entitled to one free month of ROIbot Pro (a $17 value). All you have to do is click on the button below to collect your bonus. It’s 100% free.ROIbot Pro is the world-class collection of mission critical promotion tools. After the first month you will be charged the $17 monthly rate. Give it a try – it’s like a shot in the arm for your business.
Collect Surprise Bonus |
Customer “Force Field” Concept #2: “VIP Value Pack”
This concept works best for businesses that sell multiple items and/or services. If that’s you, I guarantee the “VIP Value Pack” is going to be one of your favorite promotions.
Works well for restaurants, service businesses (all kinds), professionals and retailers.
The “Value Pack” is really a bunch of certificates or coupons that provide exceptional value for your customer towards everything they need for the year.
This is kind of like your “mini entertainment book” that you see sold all the time. Typically, I’d put a price of $20.00 to $30.00 on this pack of coupons. Your goal is to provide at least 10x the value they pay you in cash towards other services you provide.
So if your Value Pack sells for $30 bucks you should give out $300.00 in savings. Keep in mind that these certificates could be for anything you offer. Focus on giving bigger discounts for products/services that your typical client does not normally use.
The first thing you need to do is sit down and write out every service or product you offer.
Just keep going until you can’t write anymore. Then you want to brainstorm over the best discount or value you can give. Things like dollars off, percentage off, 2 for 1, buy 3 get the fourth free, etc.
Next, you’ll want to include what your regular clients need almost every year and include that in your Value Pack. For example if you were a Veterinarian it’d be physical exams, heartworm test, vaccines, etc.(those are the regular services). For these almost mandatory services you don’t need to discount as much. But you should provide a good value.
Value Pack Design
Now that you’ve got your list together along with your best offers it’s time to make them into certificates. The link below is an example to give you ideas (plus there are blank templates on the last few pages).
Use your right mouse button to download the example
Tell your printer you’d like the certificates bound together and to look like a coupon book. They’ll be able to show you samples and give you the right look. Shop around for a good price because you’ll probably find a significant difference in the quotes between printers. Go with a one or two color format for economy.
The Expiration Date
On the last page of the Value Pack you should include an expiration date. This is done so clients will have to keep repurchasing these coupon books from you. Simply buy a cheap date stamper at staples and a red ink pad. Then stamp out a date one year from the time they buy the Value Pack. This is simple and leads to more repeat business.
Promoting Your VIP Value Packs Internally First
Now comes the most important part of this entire process: marketing your packs. I’m going to give you lots of easy to follow ways to get your VIP Value Packs working for your business.
First and foremost you should concentrate on your own clients whom you see each and every day. This is usually the most overlooked and under appreciated asset you have in your practice.
The easiest way to get going with the promotion of these packs is to put signs all around your office (if customers or clients come to see you). These are like headlines with only once purpose: to get clients to ask your staff about saving money on their future visits.
So put up signs in your office that say:
– Ask Us Today!” |
Next, you may want to get buttons printed up with similar messages for your staff to wear. Try something like these:
“Ask me what a VIP value pack is”
“What’s a VIP value pack?”
Also, put little blurbs on your service contracts or inserts with your bills. Really, just promote this program everywhere because a one-time sale can lead to recurring revenue for months and months to come.
Example Scripts
It is critically important that you try some kind of ‘tested selling sentence’ to your clients before they leave. Your tested selling sentence should be used by your front office person on every single person as they’re leaving. This should become absolutely habitual and automatic.
As the client is leaving your front office person will say something to this effect:
| “Mrs. Johnson, would you like to save hundreds of dollars on all the things you’ll need this year from us?”
When client responds “how” or “okay”, they continue: “Well, we have a new coupon book called the VIP Value Pack and inside you’ll be able to save lots of money on things you’d need anyway throughout the year. Inside is over $300.00 in savings for things like …but it’s only $30 today with your visit. Would like me to add this to your bill?” |
After giving this a try, you should continually try to test out different scripts and your own tested selling sentences for presenting the pack to generate optimum reception. Make a careful record of what was said and how many clients said “yes”.
Also, it’s not a bad idea to give your staff members some incentive for selling your Value Packs. Give them $5.00 or $7.00 for each pack they sell. Turn them loose in their neighborhood or around town with a couple dozen packs.
Remember, your goal is the back-end business generated by people that bring in the certificates. That’s where you’re going to make the bulk of your profits.
Sample Letter Selling The “VIP Value Pack”
* * *
Everything You’ll Need This Year From
I’m writing to introduce you to a new money-saving program we just started here at {your business}.
It’s called the “VIP Value Pack” program and it’s unlike anything we’ve ever done before.
It’s an entire booklet of money-saving certificates good for almost everything you normally buy from us. The “VIP Value Pack is loaded with savings on things like ____, _______, _________, and much, much more.
In fact, you’ll save over $300.00 on the services and products you needs every year. But right now as a special offer, you can get one of these VIP Value Packs for only $30. That’s right. And just by using 1 or 2 of these money-saving certificates you’ll more than pay for your entire investment here. It’s really a good deal on the same things you’d normally pay full price for anyway.
Why Give You Such A Bargain?
You see, the reason I’m giving you such a bargain price is because I want to keep you as a happy customer for a long, long time. So with all the money-saving certificates inside the VIP Value Pack you’ll be twice as likely to keep bringing your business to us. And, better yet you’ll also end up saving money at the same time.
Here’s What to Do Now:
Just call my office at xxx-xxx-xxxx and ask for Sandy to get your VIP Value Pack sent to your house. We can charge your credit card or simply send you out a bill. Do it today and start saving money on your very next visit.
Sincerely,
XXXX
P.S. Over $300.00 of money-saving certificates are waiting for you inside your very own “VIP Value Pack”…call today!
* * *
Super Secret Way To Sell Tons of Your “VIP Value Pack” (and do good for your community at the same time)
Think for a moment with me about all the organizations around your community. I’d bet there are dozens and dozens. And do you want to know the one thing they all have in common?
They all need money!
Yep, and you’re the guy or gal that can help them now. Organizations are always running low on good fundraising ideas. How many times have you been accosted by a kid selling overpriced chocolate bars? Or what about those “free” car washes?
Well, now you’ve got an exciting program for them to get involved with and that’ll end up being a real money-maker for you and them.
First, you need to pick out who you’d like to work with. You can choose from youth sport teams (hockey, soccer, little-league, etc.), churches, civic groups, scout clubs, etc.
Or you can go to your local chamber of commerce and get a list from them of all the civic organizations around your area. Also, you can check out the yellow pages under “associations”, “non-profits”, “athletic organizations” and/or “youth organizations”. Okay, with me so far? Onward then…
You should start out with one club or group first so you can work out all the kinks. I’m sure your kids or a neighborhood kid is involved in some kind of group that needs money.
As you approach the clubs you need to focus on these selling points to them:
- No Risk and No Investment For Them
- High Profit
- Easy Sale For People (with a car, with a pet, who take vitamins, etc.)
- Super Value on things they’d pay full price for anyway
Use these points as you call up the clubs. You want to speak with the person handling fundraisers for the group. In bigger clubs this position may change frequently so if you can talk to the president that’ll work out real nice.
The best way to handle the cost of the booklet is to give the group the majority of the profit on the VIP Value Pack (you’re only concerned with back end anyway). So it wouldn’t be outrageous to offer them $20 or $25 for every coupon book they sell. This will make the group ten times as motivated to sell your services.
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Remember, we’d love to hear your results – send them to: results@instantmarketingtoolbox.com
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