Using a value ladder to price your services.
Okay, we know how that title sounds - super business-y and not very TGS - but trust us, this is going somewhere good and will be a VERY worthwhile strategy that you can implement in your business while navigating a slow season.
And a PSA, we are not gatekeepers of useful and relevant information that is going to help other female business owners! We want to share the love by sharing all the things that have helped build TGS. Your success is our success and we wouldn’t have it any other way.
What is a value ladder?
A value ladder is a tiered product breakdown that structures your offering into three broad categories, allowing you to better serve your ideal audience, wherever they’re at in their journey.
Identifying your ideal audience doesn’t necessarily mean that they’re 100% ready to work with you. It can mean that they have all the makings to, but might need to work on their business before making a large investment. Or maybe they’re waiting to build that trust with you before investing. Maybe they just need a gentle nudge of encouragement.
Even here at TGS, we have always had our hero service, but have quickly realised the importance of expanding into new areas to offer more to our ideal audience.
The biggest thing you can do right now is establish a value ladder that will diversify your income streams within your business, allowing you to serve a broader ideal audience at every stage of their journey. Look at your current offerings and audit them to determine three levels.
Level One
Level one is a small buy in for the lowest value. Your audience still gets something worthwhile and value-based for a smaller investment which builds trust and establishes a relationship. This product/offering should also be minimal effort required post purchase on your end. Don’t give more time and energy to a product/offering that doesn’t serve your business the way the highest level would.
Level Two
Level two is your mid-range offering. This will be your most popular offering. You want this to be at a higher investment with more value than level one, but still not giving the most value you have to offer. This level retains the trust you’ve built and continues to add value, positioning you as the expert in your industry and amongst your competitors.
Level Three
Level three is where the magic happens! This is your most expensive service that offers the highest amount of value. These types of projects solidify the trust in you, your audience becomes invested in you and they truly become raving brand fans! These can be customised projects tailored to specific needs, in order to maintain your expert status that was started in previous levels.
By breaking down your business offering in three levels like this, it allows you to diversify your income and not rely solely on one offering to carry the weight of your business. Establishing distinct services that serve every level of your audience, allows you to make more time for yourself, by doing the things that you love with the people and audience that love you back!
We all want to be working less and making more, that’s no secret! So, let’s start thinking smarter about how we do business and how we can better serve our audiences.