American Business Magazine

Stop Selling Loss Leaders – Embrace Gatekeepers

Do you run a service firm? Create your initial offering priced with the highest margins.

We’ve seen company after company under account for the total effort cost of onboarding new customers. Their ventures waste too much revenue on client acquisition costs.

Generally, acting on something for the first time requires reducing your initial goal sufficiently. Oftentimes, that’s the key to creating a good initial offering. But low risk doesn’t mean low margin!

New buyers often want to experience what you offer before committing to their top spend. Then, from there on the pricing precedent you establish tends to become the expectation. If you offer a discount, you could unintentionally imply that your customers are suckers if they fail to negotiate that same discount the next time they buy from you.

You’ll also find that the price of your initial offering is an important gatekeeper to your customer selection criterion — meaning that it’s a structured way to ensure your buyers are willing to spend their time and money on the rest of what you have to offer.

Read more at: https://www.americanbusinessmag.com/2024/09/stop-selling-loss-leaders-embrace-gatekeepers/