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Sell High Ticket Items For Big Profits

I see it happening all the time. The new business owner gets excited about their online prospects. They read a few ebooks, pick up a couple of courses, and get started with their first product.

And for their first product, they create a $7 ebook…or maybe they go way out on a limb with a $10 product. Their concept is that with such a low price, it should be easy to sell.

Sure, you may sell more at this low of a price, but what’s your overall strategy? How do you upsell them to a higher ticket item? What are the other products you make available to them?

Here’s a rule you must always remember…
Good marketing will not overcome bad math!

You have to sell 100 copies of that $7 product to just make $700. If you want to earn at least $5,000 this month, you have to sell 715 copies…and that’s counting you as having zero advertising expenses. That’s a tough road to follow. Averaging 24 sales a day without advertising just to earn an OK income is not an easy to plan. And it’s never one I’d want to follow.

Do the math! Let’s say you want to earn a million dollars. Sell 100,000 items at $10…or 1,000 items at $1,000.

Please note that high ticket could also mean $5,000, $10,000, $20,000 or more. These higher ticket items greatly reduce the number of customers you need to reach your goal.

What if you sell 10 of your $10 product this week, you make $100. On that $1,000 product, you made $10,000. Can you live on $100? Not likely. Can you live on $10,000 a week? I surely hope so, or we need to take a serious look at your lifestyle!

How about taking care of the customers? A surprising fact I’ve found is often the higher ticket customers are less demanding. With a higher ticket item, you obviously need a lot less customers…which means less customer service on it’s own…and less staff. So less expenses in selling those higher ticket items.

You do the same marketing work for more profits. You have to create a sales letter, autoresponder messages, JV letters, etc. for either product. The sales letter for the higher ticket item might be a little more detailed, but those same details can find their way into your email messages, videos, teleconferences, etc. You make more money from the same work when you sell higher ticket products.

So what’s the purpose of a low cost product?

I’ts a lead generator for your high ticket items. Build a stronger relationship with your customers. If you’re selling another product first, you can also move into additional marketing such as direct mail or phone to sell the higher ticket item.

So the only question left is how do you develop higher ticket products?

One key of course is by adding additional value. Review my previous article on 20 Ways to Add Value to your products and services. Always increase your value until you’re giving way more value than what you’re asking for in price.

Another key is to change who you’re marketing to. Pick markets where your customer have money…seek to sell to the affluent instead of those barely getting by. A great way to start this is through picking up a couple of magazines such as the Robb report. For me, this was difficult at first since I came from the place of being poor and in debt. So it was hard to wrap my mind around the fact that there were a lot of niches where people had money…where they bought $5,000 golf clubs and attended $25,000 marketing conferences.

Yet, that’s one of the biggest changes you can make…a change in your mindset. In most businesses, people are willing to spend money to get what they want. And these are some of the best customers you can ever have…if you focus on them and deliver exactly what they’re looking for.

Written by Terry · Filed Under Strategy 

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Comments

17 Responses to “Sell High Ticket Items For Big Profits”

  1. Fred Black on August 23rd, 2007 8:59 am

    Terry;
    Great advice (as usual!)
    Welcome back from vacation.
    Fred

  2. Fred Black: Internet Business Blog. on August 23rd, 2007 10:38 am

    No Guilt, Charge More, Intentions: Three Great Blog Posts You Need to Read….

    I just read thee great blog posts from three of the blogs in my blog roll (located over in the right-hand column) that I’d encourage everyone to read. At first glance you may not see that the subjects of these……

  3. Alex on August 23rd, 2007 12:57 pm

    Great post Terry and as always just because information repeated – doesn’t mean its outdated …

    I think the major hurdle people just starting in the IM face is giving themself appropriate credit. Procrastination becomes major problem as you constantly work on “making product just a little bit better” and sometimes simply end-up going for low price …

    While each of us posses unique knowledge we can share and profit from – many simply think that they don’t have enough authority to present a high priced item although it is more rewarding. Been there, done that … and can testify to it first hand :)

    But great reminder!
    Alex

  4. Koorosh Vahabi on August 23rd, 2007 1:13 pm

    Hi Alex

    This article was great.

    It changed my thinking towards pricing my products.

    Thanks

    Koorosh

    http://www.hiddenmindsecrets.com

  5. Art Luff on August 23rd, 2007 1:50 pm

    Great advice Terry,

    Cheap is no way to sell expensive!

    Art

  6. The Price Is Right! » ‘Net Marketing Toolbox on August 24th, 2007 6:29 pm

    [...] post today about selling high ticket items for big profits reminded me of some extremely valuable advice I received many years [...]

  7. kiranraj on August 27th, 2007 1:41 am

    I was just about to do the same thing!

    But will people buy a $49.95 product vs $9.99 product of course it’s the same thing iam going to sell!

    And if you agree! another Internet Marketing GURU Ken says to upsell! he stresses on upselling

    so i still believe on pricing @ 9.99 and upsell them with more products!

    What’s your suggestion Terry!

  8. Terry on August 27th, 2007 9:53 am

    Kiranraj,

    There’s nothing wrong with selling a 9.99 product as long as you know it’s just a lead generator and don’t look at it as a profit center. It is there to generate leads for your other more profitable items.

  9. kiranraj on August 28th, 2007 1:36 am

    Thanks Terry!

    I am writing this in tears of gratitude!

    I know i have a gr8 product and i know people would love to buy it! and would love to put a honest price for my product!

    I know i will make it big one day this is my first venture! I am on the (internet marketing) stuff when i was about 17 yrs old (it’s been 4 yrs now)

    Iam a 21 yr old now and never had the courage to get it started all these years i was educating myself! But never had the resources or the courage!

    Now i have a gr8 Friend like you who actually replied to my comment which is gr8 what else i want!

    I will surely party with you one day once i make it BiG! really BiG on the Internet (i know i will one day)

    Thanks for the suggestion!

    Cheers!

  10. Yuri on August 30th, 2007 1:38 am

    I wonder how you define the right price for the product. Asking people is fickle, because they do and say different things.

    And most of all, yes, you can use the 20 ways of adding value to the product, but that’s a lot of work, if you want to take a $10 ebook to the $1000 ebook.

    Of course, it’ll pay for itself, but it isn’t just 100 times more. More likely, it is 1000 times more work, really.

    What do you think?

  11. Terry on August 30th, 2007 6:43 am

    The right price can only be determined by testing prices. You can survey…but the bottom line is people must vote with their wallet.

    It wouldn’t be even close to 1,000 times more work to produce a $1,000 product. It may be 10 times more work to do so, but that’s sometimes the difference between a project that makes money and one that loses money.

  12. kiranraj on August 30th, 2007 7:30 am

    Absolutely Terry!

    That’s why i have decided to price my product to $49.95 and i have added tons of more bonuses

    Yes..the bonuses does take time! But i know the outcome is going to be gr8!

    As you said earlier simple math!

    Iam making 5 times more money! with this price! and also the value of this product has increased and iam sure of its success!!! nothing can beat it!

    I surveyed on the internet and everybody is selling the same product under $10 but iam not bothered because of its pure value!

    To make a Million i now need under 50000 customers! I don’t think i need so many either with the upselling into it!

    so instead of 250,000 customers, i can make a million with only 1/5th the number of customers…that’s the point!

    And another thing i wanted to ask you Terry!

    Everywhere on the internet there is buzz going on about a new thing!

    GOOGLE ads free a man seems to have found out the trick says it’s completely legal and he has found a way to get all the Pay Per click ADs completely FREE and says he is making Millions!

    All i know is that he must be referring one thing!

    And that is create an affiliate program and recommend his affiliates into PPC ads! that’s the only genuine way i know to get ppc ads FREE!

    What do u think Terry!

  13. Terry on August 30th, 2007 10:30 am

    My recommendation is not to get caught up with all the buzz about whatever new thing is “making millions.”

  14. Daniel McGonagle on May 18th, 2009 1:17 am

    Good post here Terry,

    On several, points you are SO right, it hurts…

    #1- Selling the low-end products means volume is needed to gain the desired income of..say.. the tpyical 5k/month…

    #2- Purchasers of high-end items don’t need all that hand-holding, as I’ve found form my experiments with selling items via direct sales from my blogs. I offer some bonuses which require people ot contact me for a perosnal consultation, but many of them don’t even bother to contact me because they bought what they wanted, and a probably busy like me and just wanted the product, and forego the hand-holding.

    However, with so many products out there focusing on makin g”bank” with product launches in the health and IM niches, I’d like to see someone write a blog post about how to find the good high-end items worth promoting and more detail on how it’s done.

    Your post here does a good job of convincing why it should be done, but not a lot here on how it’s done. Maybe you take requests?

    Either way, I’ll be experimenting with this some more because none of my products have ever been high-end (2k or above price points) items so I’ll stop back here with some case studies for your readers (and my own) to read.

    Thanks,

    Dan

  15. Chris Jensen on June 26th, 2009 2:01 am

    Thanks Terry,

    I have been hearing a lot about this topic lately. In the back of my head, I guess there is something telling me that I will not succeed at selling high ticket items, but I guess that is really just an excuse for not doing it!

    I am really looking into this a bit more. How can it be just as easy to do?

    Thank you for this post. I think that it might just be the confidence booster that I need to go out and give it a try!

    Chris Jensen

  16. Daniel on April 29th, 2010 10:52 am

    This was an awesome post, you really opened my eyes for another type of mindset when choosing where to promote products.

    I’ll go and search for rich people right away Terry :-)

    Thank you

  17. femi on October 10th, 2012 7:32 am

    Great post !!! everything said is true . i always thought that high end products wouldn’t sell as well low end product but i am completely wrong !

    not only do you enjoy huge profits selling high ticket items , you also have less hassle when it comes to customer service

    Thanks for the tips

    apart from Robb Report , where can you find rich people who desperately need what you are selling

    Cheers

    Femi

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