While some businesses focus on catering to the luxury market, most businesses are looking to serve a broader market of incomes & lifestyles. Even when you’ve gotten crystal clear on who you’d most like to serve, that group can be diverse.
So it’s natural to want to offer a way to engage your work that’s “affordable.”
The thing about “affordable” is that it’s not actually related to price; it’s related to value.
Here’s what it takes for something to be affordable:
An affordable product must deliver considerably more value to the customer than the value she exchanges for it.
Of course, all of your products should fit that description. Michael Port, author of Book Yourself Solid Illustrated, uses a baseline of 20x–he prices his products in a way that he can guarantee a 2000% return on investment if implemented properly.
So the real danger in using the word “affordable”–even just in your own head–is that, I believe, it undermines your perception of the value you are already offering. Everything you create is affordable. Everything you offer delivers a significant return on investment in terms of money, convenience, fulfilled desires, time, etc…
That’s the very essence of affordability.
But that’s not what you mean when you make offering something “affordable,” is it?
So let’s stop using this word that doesn’t really mean what we think it means. Let’s remind ourselves that businesses are have a duty to create products that are affordable based on value and return on investment.
So what does your business need?
What your business needs is something accessible, something with a low barrier to entry, something that requires less trust on the part of your new customer. Those are the kind of products that help your potential customers turn into loyal customers, while creating a stream of revenue for your business at the same time.
Look more closely:
Often brands have their own language, their own energy. Does your business offer an initiation to this language? Do you offer a product that imbues that energy to new customers?
Doing business with a new brand can be intimidating to customers, especially when their hopes, dreams, or goals are on the line. When you offer an accessible product, you’re giving your prospects a way to ease into your business’s bigger offerings.
Low Barrier to Entry
Does your business offer a product that is easy to get? Something that’s on sale all the time? Something requires very little of your potential customer?
Products with a low barrier to entry allow new prospects to turn into new customers very quickly. They can often open the door to a more in depth sales conversation.
You want to deliver big results for your customers. However, those big results often require a big leap of faith on behalf of your potential customers. Do you have a product that requires a little less trust? Promises an equally important but smaller outcome?
Products that produce concrete results and accomplish tasks that your customer are already seeking solutions for require much less trust than those that promise transformative change. Building trust in small steps prepares your customers to bigger steps with your business in the future.
Stop selling yourself short on the value of your products or services. Look for an opportunity to create a product that creates a path into your business that’s accessible, low barrier, and low trust.