How To Determine The Product Mix For Your Business
Most of us start our business because we want more freedom. No longer being told what to do, no longer needing to stick to someone else's schedule. Freedom to travel whenever we want… all of those things. For sure!
But: obviously we all want to make money in our business, too. In order to make money we need two main things: a product or service and an offer to actually gain sales.
This is where a great product mix comes in.
What does ‘product mix’ mean?
Product mix just refers to the different products that you offer within your business. Ideally you have a few different offers at different price points, we like to differentiate those as low-end, mid-end and high-end offers.
This is what we call your product mix.
Why do you need a range of products?
The biggest reason why you want to offer different products with different price points is to gain TRUST. Gaining trust from potential clients is crucial, as then they know that making the investment into your mid-end and high-end product or service will be worth it.
For example, if someone knows they need a social media manager to help them in their business, but they don’t want to invest a lot of money straight away, then a low-end offer would be best suited to them. Some people hold reservations on investing large amounts of money straight away, because they fear that the investment won’t be worth it, this is particularly true when the client doesn’t know much about you. In order to gain more trust and for the potential client to get to know you better, a low-end offer such as a two hour workshop would be a better choice of investment for them. Once they are convinced of your skills and knowledge, it is an easy decision for them to upgrade to a high-end offer.
Each business will have a range of ideal clients, as your offers are at different price points and your clients will be at different stages of their ‘journey’. Of course, you will still have an overall ideal client with main factors in common for them to qualify as being your primary target. However, each offer has a different purpose and therefore a slightly different ideal client.
The low-end offer is at the bottom of the product mix, it is the very broad part of the triangle, which means a lot of people will purchase this offer. The higher up the triangle the client progresses, the less people would have made a purchase (hence the shape of the pyramid).
The investment of the low-end offer is low, but also the exposure is low. You will not have a lot (or any) individual access to the person teaching you.
Progressing towards high-end offers the exposure to the person teaching you will increase, as will the investment.
The top of the triangle, it is very narrow and there is only a handful of people who would purchase the high-end offers. The investment and the exposure is the highest, as it’s the most customized to the client personally.
⇒ Exposure and investment always go hand-in-hand. The more exposure a client gets, the more customised to their scenario and individual business, the more expensive it has to be.
The low-end and mid-end offers are gaining the clients trust, so they are more willing to purchase the high-end offer. Once trust has been gained through the low-end offers, then they are more likely to invest in the high-end offer - you guide them through a funnel and not everyone will make it to the top and that’s okay!
Let’s get a little more hands on here and throw in some examples of real product mixes for particular businesses:
What could a product mix for a coach / consultant look like?
The low-end offer could be a masterclass, like a one hour workshop about one specific topic.
The mid-end offer could be a group coaching program.
The high-end offer could be one-on-one mentorship program.
Not everyone would be able to afford the one-on-one mentorship, hence they purchase the group program offer as a way to receive support from a coach but with less personalisation.
Or a coach may have a potential client who wants to get to know them more, so they will purchase the masterclass. With the masterclass, a client is investing a low amount to see whether they connect with the coach. If they do it only makes sense to upgrade to the higher priced offers.
In a product mix, the different offers should go hand-in-hand with each other and they should never be mutually exclusive. Using myself as an example, my course will be for entrepreneurs or aspiring entrepreneurs who are just starting their business. They are looking to gain their first clients or to reach a good income, such as $5k months. But, then my one-on-one mentorship is for entrepreneurs who have already established their business and already have paying clients.
It’s a step-by-step process and not mutually exclusive but rather building up on each other. So that it makes sense for clients to gradually progress through the product mix.
And for a Pinterest Manager?
Low-end offer - a masterclass where viewers are taught on a particular subject to do with Pinterest, for example, how to get the most views on your pins. This would just be one hour long for example, so is a short snippet of the Pinterest managers knowledge. It serves to gain trust and exposure within their ideal client’s audience.
Mid-end offer - three weeks intensive, to get from 0 unique viewers to 10k unique viewers. The Pinterest manager would explain the strategy behind the tasks that have to be undertaken to increase unique viewers. But, they will not actually be doing the tasks for the clients. The clients will take the strategies onboard and implement them themselves.
High-end offer - a done for you service. The Pinterest manager will work with the client individually and will do all the tasks needed to successfully run an Pinterest account.
And for a Virtual Assistant?
Low-end offer - a short video series explaining different methods to create landing pages and the features of a landing page.
Mid-end offer - a course on how to grow your email list, using a freebie, landing page, optin forms and email sequence.
High-end offer - done for you landing page connected to an email platform, with emails created in a automated sequence.
Last but not least, what about a motivational speaker?
It all works the same. You want to think what is the lowest offer you can make, so that your client gets value, gets to know you and ultimately wants more from you.
Low-end offer - a book about whatever your core topic is
Mid-end offer - a three hour workshop (either in person or online)
High-end offer - a two day company event, including individual speaking sessions, workshops and break-out sessions
YES this works for every industry, every online business.
Think about how you can gradually ‘move’ your clients from one product to the next. Not every client will start with your low-end offer and in the end purchase your high ticket offer. And that’s okay!
But by having different offers you give room for the possibility of having several people upgrade their initial offers because they now trust you and know you are worth the investment.
Do you currently have several offers at different price points?
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