I met my ideal client a few weeks ago. She was everything I wanted in a client and more – including the fact that she lived in GERMANY and we spoke German together! We exchanged a few emails, hopped on a consultation call, and I drew up a proposal. Everything was going swimmingly until she read the proposal. A few days later she told me that we weren’t a good fit at this time and I moved her to the “lost” category in my CRM software.
While I’m not sure why I wasn’t a good fit (and if it ever happens again – I should ask!), I suspect it may have had something to do with my price for social media management. In my proposal, I quoted several hundred dollars per month for full management of two accounts. At the time, that was my ONLY option in social media management.
Then, there were my blog packages, which came in tiered packages ranging from $150 per month to $2100 per month. There were options for small blogs or large, minimal assistance and full-on management of the blog and all of its content. There was something for everyone, no matter what stage of their blog journey they were at.
I couldn’t figure out why people were paying for blog packages up to $600 per month, but they wouldn’t pay that or less for social media help. My rates are competitive. The social media management package includes everything you need to create a content-rich and engaging profile.
So I asked my virtual assistant coach. She suggested that the reason my social media seemed so daunting was that I didn’t have tiered service packages for clients to choose from. As someone else put it in my mastermind group, if I wanted them to buy the medium package, I needed to have a small and large.
I created tiered packages – maintenance, bronze, silver, and gold – and prospects have not only been more interested in the choices in services, but I think my proposals are more appealing and less scary as well. Let’s be honest, hundreds of dollars for something you’ve never even tried is A LOT of money. Smaller packages are confidence builders, so don’t minimize their importance.
Why You Need Tiered Service Packages
People want to test drive new things.
Do you go to a car dealership and buy an expensive Cadillac without test driving it? Probably not. You have to know that you love the car and that it’s worth spending that kind of money.
Services are the same way. What if you don’t like the service or it doesn’t get the results you were hoping for? What if you don’t click with the person performing the service? People like to try things before they make a huge investment.
People need their confidence built up.
Even though they may have signed a contract, people need confidence building. Test driving a service is one way to do it, but it’s just as important that they know their investment gets RESULTS. A small package is your chance to prove to them how AMAZING your service is, then upsell to a more expensive package.
Tiered packages are the staircase your clients can climb to reach the next floor of services.
People LOVE having options to choose from.
Do you want vanilla, chocolate, or strawberry ice cream? While vanilla may be your favorite, don’t you LOVE that you can be in a chocolate mood and you have the option? We love options!
So do your clients.
Not only does it give them freedom and control over the services they receive, but it gives them options to scale up or down depending on their needs. No one wants to pay for things they don’t need. That’s why my lowest social media package is just for clients who don’t have time to schedule and maintain their social media, while my largest gives clients the option of strategy creation, analytics assessment. It’s a 100% hands-off experience in which they can count on their social media being taken care of…WITHOUT them having to spend any time on it at all. Give them something to choose from!
When you’re figuring out how to package and price your services, consider using a tiered package structure to give your clients choices and to build their confidence in your services over time.
What do you think of tiered packages?