What are high-ticket items? How to close expensive sales
High-ticket items are expensive products, services, or information products that offer a ton of value to the consumer.
The focus should always be on the consumer. Keep that in mind when creating your next high-ticket solution. Interestingly, these types of products offer a high-profit potential for any business or marketer.
The average pay for a high-ticket marketer is $78,282/year, which is above the annual earnings of an employee in the U.S.
One of the core reasons for business failure is when revenue goals aren’t met. According to HubSpot’s Sales Enablement Report, 40% of businesses miss their revenue targets.
This survey also shows that only 21% of underperforming organizations are aiming to increase the average sale price for deals.
This article will simplify the entire process for you — with helpful guides for overcoming the challenges of high-ticket sales.
High-ticket sales deal with products that cost more than usual. For example, a $10 eBook is typically a low-ticket product, while online coaching priced at $1,000 or more is regarded as a high-ticket.
These premium customers typically require convincing a customer to buy.This strategy is different from selling a low-ticket product.
Another example: Consider mobile phones. While they all have similar functions, high-end models (such as iPhones) can cost more than their low-end counterparts (such as iTel phones).
Hence, a company will provide a range of choices to attract a wide range of customers.
Big-ticket items may be expensive, but they do not need to be larger. The main difference is that expensive items are usually luxury or offer higher-perceived value to the consumer.
For example, luxury cars and private airplanes tend to be higher in price. For this reason, selling a single high-ticket item can make up for hundreds of smaller sales.
As an entrepreneur, it’s important to create high-ticket products or services for your brand.
There are a few ways to do this. One method is to use a pre-order event. For example, Samsung uses a pre-order event to entice consumers to make an initial deposit.
High-ticket sales challenges
To succeed in high-ticket sales, you need to know what odds are stacked against you.
Let’s go through some of the challenges of high-ticket sales:
1. Longer sales cycle
It takes longer to convince a customer to spend $1,000, $5,000, or even $100,000 on your product or service.
It’s a lot easier with a low-ticket item such as an eBook that’s priced at $10 to $30.
The average length of a sales cycle can vary depending on the client and the item being sold.
However, the average length of time is 84 days from lead generation to deal closing.
Depending on the type of product or service being sold, the process could take up to 6 months — from prospecting to closing sales and follow-up, as illustrated below:
One way to reduce the length of the sales cycle is to focus on creating more relevant content for your target audience to nurture them.
Consider sending valuable resources to your leads and follow up with them every 1 to 3 months.
2. More objections
Overcoming objections is one of the most important sales skills. Unfortunately, it’s not as easy as some people think.
You can’t expect prospects to be able to make a final decision without facing a lot of resistance.
Fortunately, there are several techniques you can use to overcome objections and get to the sale.
The first tactic is to understand your prospects’ objections.
This way, you can respond to them appropriately — “by demonstrating the unique value of your product, and giving specific examples of how the product will solve a problem for the customer,” says Sarah Houlihan.
Sometimes, it can be as simple as a misunderstanding, or it can be as complex as a genuine incompatibility.
Identifying what’s driving the objection can help you determine if it’s a real problem that your prospect has.
Once you’ve identified the real problem, you can help them understand why your high-ticket product is the best solution.
A common objection to a product or service is “Can you prove it will work?” This objection is usually rooted in a fear that the prospect has.
The prospect may have tried a similar solution in the past and is concerned that it won’t work.
Try to understand the prospect’s frustrations and find ways to prove your authenticity beyond the sales page of your product.
3. Hard to close sales
High-ticket salespeople face several challenges. For starters, they have to develop trust with their prospects and talk to the decision-makers.
Another big challenge is the budget. The most common reason why a sale falls apart is budget. However, there are a few things you can do to make sure your sales close more easily.
The first way to increase the chances of closing high-ticket sales is to position yourself as an expert in the product or service.
High-ticket purchases typically require more time for research and consideration. In this case, it’s important not to be pushy, or brash, but instead, act as an expert in the area.
By doing so, you can offer the perfect product and satisfy your client’s needs.
A great high-ticket close will allow you to increase revenue faster by leveraging the value of the sale. By mastering this process, you’ll be able to sell higher-priced products and boost your profit margins.
When you focus on the customer’s needs and experiences, you’ll be able to develop a lasting relationship with them. This will make the entire process of selling a high-ticket item rewarding.
How to sell high-ticket products and services effectively
If you want to sell high-ticket products and services, you need to create a compelling value proposition. Then, you need to create a sales funnel incorporating your unique selling points.
That said, here are 4 effective psychology-based tips for selling high-ticket products and services:
1. Be confident
When selling high-ticket items, it’s critical to be confident in your abilities.
After all, most high-ticket buyers have made up their minds about the product they want. They have a need and the means to solve it.
The challenge is finding the right way to persuade them to buy. It’s tempting to guilt-trip your prospects, but that’s not the way to sell high-ticket products.
The most effective way to close high-ticket sales is to find out what your customers need and how you can meet those needs.
Typically, this involves building a list of questions and finding out what motivates your buyers. If you can address their needs, they will be more likely to purchase your product — regardless of the price tag.
When you’re a newcomer to high-ticket sales, you might find it intimidating. However, with patience, you’ll start to feel more confident in your ability to sell high-ticket products.
Ultimately, high-ticket sales can make a big difference in your bottom line and your commission payout.
To build a sustainable business, you need to build relationships with your customers, rather than just selling them products.
Nurture your customers’ trust by being honest and transparent, and positioning yourself as the customer’s advocate.
Take your online reviews seriously. Be deliberate about them, and respond to comments and questions from your target audience.
According to Qualtrics, 93% of consumers are more likely to believe a review online than an endorsement from a friend, and 54.7% of consumers read up to 5 online reviews before making a purchase decision.
By focusing on your customers, you can better understand their needs and desires and be able to provide solutions that meet their needs.
Nurturing your customers is crucial for high-ticket sales, and this begins with identifying your buyers’ characteristics.
You need to know their age, gender, location, career, interests, and pain points. With these insights, you can persuasively tailor your sales approach to meet their specific needs.
Scarcity and urgency are powerful psychological triggers that increase your conversion rate.
When involved with high-ticket sales, you need to master the art of infusing scarcity — and nudging customers to take action right now (and not later).
Start by adding a countdown timer to your product’s page or sales page.
Incorporating them into your marketing can help you increase your sales.
By creating a sense of urgency in your customers, you can reduce the chance of price checking and indecision.
The most common method of creating this sense of urgency is by creating a sales countdown timer. The example below cleverly uses scarcity and urgency — Hurry Up. Item Almost Out Of Stock!
Effective marketing boils down to leveraging ‘Urgency.’ People love to feel that they have to make a purchase as soon as possible.
These tactics work by leveraging the pain associated with loss.
They trigger an emotional response that drives immediate action, causing people to spend more money on your product than they would otherwise.
The real urgency comes from the problem itself. When a problem is “bleeding”, it’s urgent to solve it. Likewise, a “big enough” problem creates urgency.
The problem must be real, and the solution must solve it. Creating a sense of urgency and scarcity can help increase sales without being pushy.
If you spend time building a memorable brand, then selling high-ticket items becomes easier.
Think of Louis Vuitton, Nike, and other high-ticket brands, they all have irresistible brands.
High-ticket items are highly profitable and can make a dramatic impact on your bottom line.
Although they present unique challenges (as explained above) to salespeople. As a result, many business owners shy away from marketing these high-ticket items.
Essentially, start with low-ticket offers while you’re still building your brand.
Once you have gained some market dominance, then you can introduce some high-ticket products and services to your bottom line.
After all, with high-ticket sales, your company needs to attract a smaller group of higher-value customers to make a boatload of money.
High ticket items: Conclusion
Closing an expensive sale of high-dollar items requires great sales skills.
People often hesitate to buy expensive items and services, so it’s essential to know how to overcome price objections and close deals.
Providing financing options or providing a limited-time discount are effective ways to overcome price objections.
When selling high-ticket items, it’s vital to develop long-term relationships. Once you have acquired a lead, aim for 2 to 6 months to close the deal. It could be faster — but don’t set your expectations too high.
Moreover, long-term relationships will help to secure more revenue and customer loyalty.
Loyal customers spend an average of 31% more than new customers and are less price sensitive.
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