5 Mistakes Entrepreneurs Make in Selling A Premium Offer – How To Sell High-Ticket Services Ep. 7

(triumphant music) – Okay. So, who’s got a good… Let’s have two people go to the mic. Just share… Who’s got a very good example? You think, like, this is awesome. Yeah, go to the mic. Just go to the mic. Yeah. Go to the mic. Yes. One more? (mumbles) Okay. Just introduce yourself
so they know your name. “My name is…” – Hi, my name is Adnan. – [Dan] Hold on.
Everybody say “Hi, Adnan.” – Hi, Adnan. – I choose the Ferrari. – [Dan] Yes. – And I said “Why it works,
is that you can’t have it.” (audience laughs) – [Dan] No, you can’t… No. Different context. You can’t…
– What I mean by, “you can’t have it” is… You can’t have it tomorrow, right? A Ferrari is handmade, it’s… They can make it a million different ways. – [Dan] Yes. – And nobody can have the same Ferrari. And you can’t have it tomorrow. There’s a two-year waiting list. – [Dan] Yes. Yes. Actually, I’m going to
use Ferrari later on as an example, but very good point. Yes. – So, my name is Hassan. – [Dan] Hi, Hassan. – Hi, Hassan. – So, I chose the example of a scarf. – [Dan] Scarf. – So, you can choose a $10 H&M scarf, or you can choose the $400 Burberry scarf, which is local, handmade, hand-stitched, made of the finest fibers. – [Dan] It makes me feel good. Because I have one. It’s good. Keep talking. – Handmade with the finest fibers. Any color of your choice, for $400. – [Dan] Only $400. – Only $400. – [Dan] Lot of loss. – My name is Jason, and I said the same
thing for my group here. – [Dan] Hi, Jason. – Hi, Jason. – I think in terms of
like, a bunch of guys, and you say, a Volkswagen is walking by. No one’s head is gonna turn. But you see a Ferrari, or Lamborghini, everybody’s gonna turn. – [Dan] Yes. – It’s just like a
signal that it’s quality. – [Dan] Yes. – And it’s not going to break down. – [Dan] And by the way,
if you know anybody. Anybody. I have never owned Ferrari,
I’m not interested. My friends own a Ferrari.
It’s a pain in the ass. To drive. It’s actually very difficult to drive. Very difficult to park. It’s not easy to drive. – It’s a piece of shit.
(audience laughs) – [Dan] You know, it’s not that fun. You know, so… But, well, if you ask them, “Well, what do you think of Ferrari?” “There’s nothing like it. It’s awesome.” They just paid that kind of money for it, of course that’s what they say. What are you gonna say, “No, I think it’s a stupid decision “that I made on my end.” (audience laughs) It’s not gonna happen, man! Right? Round of applause. (applause) Yes. – Hi, my name is Rosalyn, and… – [Dan] Hi, Rosalyn. – Hi, Rosalyn. – Hi. So, my example is
actually Apple computers. – [Dan] Yes. – And the reason I say this is, I believe that they own
the market in terms of premium and also, identity-based product. – [Dan] Yes. – And, I believe that
company makes more money on add-ons, than the
actual products they sell. – [Dan] Yes. – To give an example, my adapter for some reason, broke. The power cord… And I was so scared to get
an after-market adapter. You know, the knock-off one? That I had to shell out like, 100 bucks. Just to get an Apple adapter.
– [Dan] Yes. And then, when you work
with the projector, you gotta buy the dongle. – [Dan] Yes. – And it even has a funny name, you know. It’s a personal computing company named after a fruit. And yet, people happily pay for these premium products. – [Dan] Very good example. Okay, last one. – My name’s Sean. – [Dan] Sean? – Sean. – [Dan] Hi, Sean. – Hi, Sean. – If you buy a printer, the ink might be more expensive once it runs out. And instead of like, stacking up a bunch of printers and going to Best Buy, – [Dan] Yes. – You could just buy the
ink that’s more expensive than the printer itself. – [Dan] Yes, yes. Yeah, I mean for that business, most of the… When they sell the printers to you, it’s actually at a loss. All the money’s made on the ink. All the money’s made on the ink. – [Sean] And they always
break down within a year. – [Dan] Yeah, always within a year. Break down within a year. Exactly. Good example. A round of applause. (applause) So, I have some very interesting examples. Before I go into it, let me just quickly cover
the five biggest mistakes that entrepreneurs make when it comes to selling a premium offer. So there’s five common
mistakes that I see, that entrepreneurs make. Mistake number one. They try to sell a premium
offer at a low price. They’re trying to sell a
premium offer at a low price. Okay, because we are skeptical. It sounds good to be true. Like, ladies. Ladies. If
I go up to you and say, “I’ve got this Chanel bag.” Okay? “And it’s $150.” – [Audience Member] Knock-off. – Knock-off! What goes through your mind? Fake. – [Audience Member] It’s stolen. Stolen. – It’s authentic, trust me. Yeah, right. Okay. So what it was I’m doing, I’m trying to sell a premium
offer at a low price. It makes people feel very skeptical. It can’t be true. It must be fake. Even though, maybe it is true. It doesn’t matter. The perception is, if it’s that cheap, there’s a gap between the price and the perceived value. Now, worse is, if I come to you and say, “You know what, I’ve got a Chanel bag. “The retail is $3,000. “This is, I don’t know, $2,001. “It’s used.” “Okay. Hmm.” Right? So, that makes a little
bit more sense, right? Same idea. So mistake number one, selling a premium offer at a low price. Mistake number two. Selling a low-value
offer to a premium crowd. Selling a low-value
offer to a premium crowd. If someone goes… MCL Motors, right? Someone goes into a luxury dealership, and they’re walking into MCL Motors, they’re not looking to buy a $25,000 car. Okay. So, selling a low-value
offer to a premium crowd. So when, you… If you have an opportunity to bring in front of people that… They could be sophisticated clients. Or affluent clients. Sell them something at a premium price. Yes. – [Audience Member] You
don’t need a buy-in offer for those kind of clients? – No. Because they’re often… These buyers… Affluent clients buying based on emotions. Okay, they’re buying based on feelings. I have bought like, stupid shit. Stupid shit. Where I actually don’t need the product, but I just admire and appreciate how good the salesman is. (audience laughs) He’s doing his stuff. He’s doing his thing. He’s saying all the right words. In my mind, I’m like, “Shit, man. You’re good.” Like, just as an entrepreneur,
I appreciate that. How good he is. Hey man, kudos to you. I just bought… I just watched a 60-minute performance. I’ll buy something from you. (audience laughs) It’s amazing. It is amazing. Because it’s based on feelings. I don’t actually need it, right? Don’t actually need it. – [Audience Member] Just to jump in. Do you do that also to
see how they’re selling? – Oh yeah, all the time. I love… Sometimes I get these
telemarketers calling me, right? I’m just like… Get them to stay on the phone just to see how they pitch. I say, “Hey, man.” “Oh man, you got… We’re selling
this thing, and whatever.” What (mumbles) was it? I got a call from a telemarketer. What were they selling? Let me think. – [Audience Member] They
probably hadn’t even researched you, either. – They haven’t researched. They’re just pitching, right? And then, she was so, so bad. She was so bad. And I was like, “No, you shouldn’t open it that way. (audience laughs) “You should be asking this question. “And then you lead me to… “No, no, no, no, no. “That’s not how you build value. “You do it there, see? “And then you do it this way.” Oh, she said, “Oh yeah. “That makes a lot of sense.” “You gotta change your script.” “You think I should do that?” “Yeah, talk to your
manager, change the script.” (audience laughs) And then she’s like, “So are you going to buy…” “No.” No. I didn’t want… It’s just fun. So… I mean, I just, I can’t help. I can’t help. I want to make it better. I want to improve it. Mistake number three. Making a premium offer
in a low-value setting. Okay. Making a premium offer
in a low-value setting. Imagine you go to a motel, and they have this restaurant there. Okay? And then you look at the menu, and suddenly you see the menu. Okay, burgers and all this stuff. Steak. $100. What the hell is this? Is it like, a typo? Like, it should be 10. No, it’s $100. What the hell is going on? Right? So again, making a premium offer in a low-value setting. They’re trying to sell a premium offer, but the environment isn’t right. I’m a very big believer in environment. In environment. The way you set up the sell. You have financial planners. If you’re trying to sell a financial plan to affluent clients… Recommendation, don’t meet at Starbucks. Okay. They’re not going to buy
what you want to buy. It’s like, when… “Man, give me half a million. “Give me a million to manage.” You meet at Starbucks? It just doesn’t happen, man. It just doesn’t work. – [Audience Member] That’s
why you host it from here. – Yeah, why I host it from here. I truly believe. I mean, you’re selling expensive stuff. Golf club. Private club. Meet there. I’ve closed so many deals
and so many transactions, just because I have
lunch at Vancouver Club. It saves me a whole lot of time. I meet someone, I say, “Meet me at VC.” That saves a whole lot of time. It shortens the process. If they have done the
research and all that, they know who I am. But, meeting here… And because I do so many meetings here, if I walk through the lobby, everybody knows my name, right? “Mr. Lok,” and this and that. And this, I do it on purpose. Shit, I’m telling you guys
my secret here, alright? Imagine. Simon, you’re not doing a deal, right? – [Simon] Sure. – We’ll say, “Simon,
let’s do lunch at VC.” “Oh yeah, let’s go to VC, man.” Okay, first of all, they would be dressed in business, right? They take you a little bit more seriously. We walk through lobby,
everybody knows my name. “Mr. Lok, welcome. Welcome back.” Da da da da da, right? “Oh man, everybody knows who that is. “He must be important.” And I am important. (audience laughs) But it’s a perception I intentionally create, right? So when you go in there, everybody… “Mr. Lok, your usual?” All that stuff. Oh, man. It’s like, this is good. There, the deal is 80% done. It’s 80%. It’s all perception. All perception. So, making a premium offer
in a low-value setting. So, we’re thinking of business. What kind of setting,
what kind of environment you want to create in order to sell the price that you want. Mistake number four. Making a premium offer
to a low-value crowd. Okay. I think this mistake
is probably the most common. Making a premium offer
to a low-value crowd. Okay? I am not going to have an item in a dollar store for $1,000. I don’t care how good the item is. Nobody’s going to buy. Not the right… Because it’s a low-value crowd. It’s a low-value crowd. Okay? So, making a premium offer
to a low-value crowd. Sometimes entrepreneurs, they try that. They try to make a premium
offer to a low-value crowd, and when nobody buys, what do they do? Yeah, they question themselves. It’s like, “Oh my God,
what’s wrong with my offer?” Or, “Must be I need a change.” Or, “Oh my God, maybe… “Maybe whatever I have, “the products and services I have, “it’s not that valuable.” We start doubting ourselves. Does that make sense? When that’s not the case, you’re selling to the wrong people. They ain’t got money. Goodbye. Not your fault. Not your fault. Mistake number five. Making a premium offer
with a low-value mindset. This is very common. Making a premium offer
with a low-value mindset. How much confidence do you have? How much belief you have
about what you sell? Don’t project your own
values to your clients. If you’re a real estate agent, just because you can’t
afford a $10,000,000 home, don’t let that stop you from
selling a $10,000,000 home. Don’t let that stop you from
selling a $10,000,000 home. Don’t project your values, and also, entrepreneurs, especially what I notice,
start-up entrepreneurs. When we’re just struggling, we’re getting started, cash flow is tight. What happens is, we project… I’ve been there. We project our own
struggles to our clients. Because, “Oh, man. Cash flow is tight. “I don’t have money. I’m
not paying the bills.” We project this kind of energy
struggles to our clients. We think they are the same way. And we communicate in a way that… It’s like, “Nah.” They don’t… They’re just not
comfortable with us, okay? Scarcity mindset. – 10 times your finances. 10 times your business. 10 times your marketing. 10 times your life. Hit the subscribe button now. (triumphant music)

51 thoughts on “5 Mistakes Entrepreneurs Make in Selling A Premium Offer – How To Sell High-Ticket Services Ep. 7

  1. #4 hit home for me. Making a premium offer to a low-value crowd can create doubt in your own mind and make you doubt the value of your offer. It is not your fault that they do not have money.

  2. Dan, you hit the nail on the head about scarcity mindset being the enemy of a successful premium offer sale. Dan, thanks for all the insights.

  3. My understanding: The five biggest mistakes are to do with mindset and selling to the wrong crowd or environment. There is so much information in this video. Got it Sifu.

  4. Heard about you making deals in hotels, but never really thought about environment this way. It is not only about the people you surround yourself with, but the materialistic stuff also. And that is an eye-opener there for which I thank you, Dan.

  5. 5 Biggest Mistakes: Sell Premium offer at low price, Sell Low value offer to premium crowd, Making premium in low value setting, Making premium offer to low value crowd, Making premium offer with low value mindset.

  6. I agree, scarcity mindset is disastrous, it alters the whole equation. Amazing in this state, the clients can actually feel it.

  7. I am loving your videos. I shut my Digital Marketing site down almost 2 yrs ago and have been running my business on fumes based on referrals until I figured out how to up my game.

    I am happy to say that you are my private & personal game changer. I just need to figure out how to disrupt my niche so I can offer cutting edge services. Then I will be ready to start on building my site & business back up.

    But you are most definitely my kickstarter!

    Thank You!!!

  8. Dear Dan Lok… i have a confession…. My sister nagged that no one will pay the price i put on my service… I did sell it… F**K! Now I have to believe more in YOU! The good news is… MYTH CONFIRMED!… Bad news and Great news is… F**K NOW I HAVE TO DO MORE AND LEARN MORE FROM YOU! Thanks Dan!

  9. Perception is 80% of the deal. I get people to pay me cash on the phone before they have even met me, because of the perception I create on the phone. Why do so many people neglect this? Hello McFly, is anyone home?

  10. Its only My Belief that, the Greatest and the Most Unique thing about You Dan is you are NOT showing motivations like 1000s of other channels, but you are Giving the Actual Value.

  11. hi dan! can you make video discussing your top 5-10 books that you've read having an impact on you career as an entrepreneur? thanks!

  12. I would like to talk to you someday. I pray and work for that to happen. And share with u how ur video helps me a lot. I am a begginer that would like to become a king of all trade.

  13. Hi Dan ! so i have this question ! If you say that having things that you like as luxurious and expensive as you like will increase you motivation and productivity, why rich people say then not to spend you money buying the expensive cars and the house ect . I know it will be better to lease so the taxes will not eat you alive , but as a young entrepreneur you suggest to still do the process of buying the expensive stuff?

  14. I have watched

    Jim Rohn for discipline,
    Tony Robbins for mastering emotions,
    Dan Pena for forceful transformation
    Dan Lok for practical business precised high ticket selling skills….

    Great Dan Lok ….your gifts of new ideas to us really precious and please keep doing for the sake of people like us …thank you

  15. Damn. How important it is to have a high-ticket mindset. Because these mistakes salespeople do come from a limited self image and not being able to cope with the fact that it's not the same to sell high-ticket to low-ticket. Thank you Sifu. I'm glad you're mentoring me.

  16. Dan is a winner! Nearly at a Million subs!!!! 👏🏾🙌🏾 Thanks for inspiring us 👍


    London, UK 2018

  17. I'm watching all of these educational videos and holy shit are they an impact on me thank you Sifu Dan Lok.
    For all these insights.

  18. Biggest take-away from the video: If you want personal coaching from Dan but can't afford it, cold-call him and act like a terrible salesperson :p

  19. Hi Dan, please share with me videos of you talking about problem #5 Selling with low value mindset in more details

  20. Mr. Lok is so convincing, he's got me looking at country club memberships….and I'm a month away from graduating college. 😂😂

  21. this used to be one of my mistakes: making premium offers to low value customers. I got rid of all the cheap buyers now.

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