If you came up with an offer your ideal customers could not refuse, do you think you’d have more ideal customers showing up to do business with you?
Well, companies like Groupon use price as a means to create irresistible offers.
A friend of mine, Alice, owned a cupcake business during the cupcake craze.
In the pursuit of a faster way to get more cash, Alice teamed up with these daily deal sites like Groupon.
The problems started when her deal became a bit too popular and she received far more orders than she had bargained for.
The reason this was an issue was because these deal sites make you drop your prices to a seemingly ridiculous level and then take half your profits.
You, the business owner, are then left with a quarter of the sale and a ton of new customers.
Not only that but you don’t get paid for several months until after the orders have been fulfilled and refunds processed.
Alice ended up going bankrupt as the deal site wasn’t going to be giving her the money for several months. In the meantime she had to pay staff for extra hours, pay for a truck load of supplies and ship all of these orders out on time to maintain the sales.
By the time the money came in, Alice was using it to pay off debts she had incurred during the sales.
This isn’t the only daily deal that I’ve heard of going sour and I truly feel for the entrepreneurs who have had to go through this costly mistake.
Now, having an irresistible offer is a no brainer and yet most business owners never even make an offer! Instead they just put their logo and slogan in a rubbish ad as a way to get their name out there.
You can dominate your market just by creating an offer your ideal customers cannot refuse.
Of the ones that do make an offer, it’s usually rubbish and based on the stuff everyone else does.
My mentor, Dan Kennedy, uses this as an example a lot and it’s easy to see why.
For just $198.00 per person, $396.00 per couple, a Vegas hotel owner would offer a luxurious mini suite in an amazing Las Vegas Hotel, right on the strip.
Give you tickets to a show featuring big name entertainers.
Stock your mini bar with a chilled bottle of champagne.
Let you drink as much of whatever you want whether you’re at the tables, playing the slots, or in one of the lounges.
Give you $1,000.00 of his money to play with and let you keep all the winnings and as a bonus, guarantee you’ll at least win either a colour TV, a VCR, or a faux-diamond ring.
He wasn’t offering this to everyone. There could only be a small number of these vacation packages available, so first come, first served.
This sounds a little too good to be true, right? Well, it turns out that this offer really did exist and was run by Bob Stupak.
Bob was the owner of the original Vegas World Hotel and for years his hotel was filled to the brim with happy customers.
His irresistible offer literally had people throwing money at him.
The main difference with this model is that Bob received the money up front while the customer was put on a waiting list. That was how he used that cash flow to grow his hotel from tiny to colossal.
Another, seemingly subtle, example is how I bought a brand new MacBook Pro with as little as £90.
I say ‘seemingly’ because in society it’s typically known as “financing,” but back when I was a struggling freelancer I literally ran out of money.
I needed a new laptop to continue plugging away at building my ideal lifestyle.
A member of staff saw me gazing at the shelf model of the Mac for about 20 minutes. I was desperately trying to think of a way to make enough to buy the damn thing.
He leaned over and said “You know you can have one of those if you pay £90 today and the rest back in six months.”
That was an irresistible offer if I ever heard one. I didn’t care that in six months I could be receiving debt collection letters or that in the worst case scenario some butch bailiff would be prying it from my bleeding hands.
I walked out that day with a brand new laptop and luckily managed to create a business which could afford a couple more of these a few months later.
Your irresistible offer needs to be appealing to your ideal customer at a price point which is too good to pass up, but just shy of being too good to be true.
This particular method is how I help my clients get their ideal customers to commit spending money with them.
Once they have taken the bait we use the next method to transition them through the back end of the business and make some real sales.