When used correctly, this will help your business increase brand exposure, increase engagement, and help your business stand out.
What is a Value Ladder?
In simple terms, a value ladder is an important tool in marketing that allows you to map out your product or service offering.
A good example of the use of a value ladder would be McDonald’s menu.
They have a variety of items you can chose from with different price points. Ala carte or stand-alone options are priced at a lower cost than value meals which gives you an entrée, side dish, and drink. The better the offer, the higher the cost.
Simplify Complexity: Stick to your worth!
Let me tell you a problem that I am constantly seeing with so many companies that are just starting up—most of their prices does not match the value of what they are offering, instead, it matches their emotions.
I know you’re probably like, what is she saying? What is she talking about?
But for those who are service-based business owners, how many times have you gone into an appointment with a potential client armed with the prices you want to charge, yet end up changing your mind halfway through the call?
How many times have you gotten nervous and let your emotions take over the pricing because of your self-doubts or unsure cues from the potential client?
So instead of signing them on with the original price you had intended to, to close the deal, you knock down the price while offering them the same value—and that is the problem.
Don’t get me wrong, giving value is good, but you have to learn to give the right type of value that aligns with your pricing. But, what you did does not show your potential client the value you are giving them.
It just shows them that you do not believe your worth and that they can haggle prices with you. And 9 times out of 10, when they sense that they can haggle with you, they will never see your worth or pay you full price for any of your offers.
That is where the value ladder comes into place.
Simplify Complexity: Setting Up Your Value Ladder
Let’s go back to McDonalds.
How do you set up your value ladder correctly?
- List down your ala carte services
- Review the services you offer and think about the things you can combine to make your value meal.
- With each ‘value meal’ item, what are the add-ons a client may want to go with?
- Review each item/offer and figure out your base price + your value meal price + add-on prices.
Being clear with the services you offer and its corresponding values is a sure fire way to captivate and increase your engagement and increase your brand exposure.