The Art Of The Downsell (Service Sale #1) Ep 182

In the Gym Secrets podcast, the host discusses maximizing client value in the gym industry by mastering a strategic sales process. He emphasizes the importance of capitalizing on a client's peak decision-making moment to sell high-value services and then down-selling if necessary. The host outlines four critical sales: the service sale, bolt-on sales for ancillary products, continuity sales for upselling, and prepaid duration sales. He also details the diagnostic sale technique, which involves understanding and addressing a client's specific goals and pain points to sell effectively. By following this approach, gyms can significantly outperform competitors, increase revenue, and ensure clients are invested in their fitness journey, leading to better results and higher retention.

• The moment a customer walks in is critical as their motivation to purchase is at its peak.
• This moment is referred to as the "moment of truth" where a decision is likely to be made.
• Capitalizing on this moment can lead to a higher investment from the client, both financially and emotionally.

"In that moment, their pain is the highest, right? Tomorrow it might not be there. And the day before it wasn't because today is the day they walked in the door. So you always have that advantage because you are in the moment of truth. You're in the moment that they want to make a decision."

The quote emphasizes the importance of seizing the opportunity when a customer is most inclined to make a purchase due to their immediate need or 'pain'. It suggests that salespeople have an advantage at this point because the customer is actively seeking a solution.

• Understanding various sales types is crucial for maximizing client value.
• The four sales types discussed are the service sale, bolt-on sales, continuity sale, and prepaid duration sale.
• Each sale type represents a different stage or aspect of the customer journey and product offering.

"So one that I wanted to share with you today was kind of the five sales that you must know if you are selling service. All right, sorry, it's four sales."

This quote introduces the concept of multiple sales types that are essential knowledge for anyone involved in selling services. It sets the stage for the detailed discussion of each sale type that follows.

• The service sale is the initial sale where you offer your main service.
• It involves anchoring high and then downselling to fit the client's needs and budget.
• The service sale takes advantage of the customer's immediate willingness to purchase due to their perceived need.

"The first sale is your service sale, all right? Now, you're not just selling one thing, but you're going to anchor high and then continually downsell all the way down."

This quote explains the strategy behind the service sale, which involves starting with a high-priced offering and then offering progressively lower-priced options. This approach allows businesses to cater to various customer budget levels while still attempting to secure a sale.

• Bolt-on sales involve selling ancillary services or products that complement the main service.
• These can include items like heart rate monitors, supplements, and meals in the gym space.
• Bolt-on sales leverage the trust and recommendation power of the service provider.

"The second sale that you need to have is going to be your Bolton sales. So this is going to be the sales for ancillary services or products."

The quote describes bolt-on sales as additional purchases that customers are likely to make alongside the primary service. It highlights the opportunity to increase value per customer by offering related products or services.

• The continuity sale focuses on upselling to a recurring service model.
• This sale type aims to build a long-term customer relationship and steady revenue stream.

"The third thing is going to be your continuity sale, all right? Which is once you've gotten them in, you want to upsell the continuity."

The quote introduces the continuity sale, which is about converting one-time customers into repeat customers through subscription or membership models. This sale is crucial for creating predictable income and customer loyalty.

• The prepaid duration sale is the final set where customers pay upfront for a long-term commitment.
• This sale secures a commitment from the customer and ensures a longer customer lifecycle.

"And then the final set that you're going to make is kind of prepay for the duration."

This quote outlines the prepaid duration sale, which involves customers paying in advance for a service period. This type of sale benefits the business with immediate cash flow and customer commitment.

• Maximizing client value involves a strategic approach to sales rather than a passive one.
• A structured sales process can significantly outperform a casual, unstructured approach.
• Comparisons are made to other industries to highlight the importance of having a sales strategy.

"So when someone walks in the door and this is how you can actually maximize your client value. Because right now, right now when people start working with us, right, they're usually only selling one thing and they're doing it really poorly."

The quote points out a common mistake where businesses do not take full advantage of the sales opportunity when a customer shows interest. It stresses the need for a more comprehensive approach to increase client value.

• Coaches must ensure clients are invested in the process to achieve good results.
• Investment is the first and most crucial part of a coach's job.

"To get people good results, you have to get them invested. That's part of the coaching job is to get them invested."

The quote emphasizes the necessity for coaches to engage clients in their own progress, as their commitment is fundamental to the success of the coaching.

• A structured sales approach includes multiple levels of sales options.
• The sales process is adaptable based on client responses.
• Navigating the sales matrix smoothly is a skill developed over time.

"Now, you see that there's four sales under the service sale. That's because this is a downsell, all right, or an upsell matrix, whatever."

This quote introduces the concept of a sales matrix with multiple sales options, highlighting the importance of flexibility in sales tactics.

• The initial sale is based on a client's awareness and the front-end offer.
• The coach must set realistic expectations for the client's goals.
• The process involves agreeing on the impracticality of quick fixes and proposing a viable solution.

"So the first thing you're trying to do is diagnostic set, which is selling to goal."

The speaker outlines the initial stage of the sales process, focusing on identifying the client's goals and setting the stage for a realistic plan.

• Coaches should establish a timeline that aligns with the client's goals.
• Pricing is presented based on the required commitment to achieve and maintain the goal.
• Flexibility in payment options is offered to accommodate the client's financial situation.

"What it's going to take is going to take you over 24 weeks to hit your goal. It's going to take another ten to maintain it."

This quote provides an example of setting a realistic timeline for a client's weight loss goal, emphasizing the need for a long-term commitment.

• If the initial financial proposal is rejected, alternative payment plans are offered.
• Adjustments include decreasing upfront costs and weekly payments.
• The coach must be prepared to modify the duration and financial terms to secure the sale.

"Then you can start decreasing the duration. You can decrease the down payments."

The speaker discusses strategies for adapting the sales offer to suit the client's financial capabilities, ensuring the coaching services remain accessible.

• Anchoring high prices at the start makes subsequent lower offers seem more attractive.
• Downselling involves gradually reducing the financial commitment required from the client.
• The goal is to find a price point and commitment level that the client is willing to accept.

"So when you anchor with a $3,000 front end, the 1000 down sounds like way less. And then the 600 feels like nothing."

This quote explains the psychological effect of price anchoring in the sales process, making lower offers appear more reasonable after presenting a higher initial price.

• Personal objections from clients, even those unrelated to the service, must be addressed.
• Offering a trial period or a free service can overcome resistance and demonstrate value.
• Commitments from the client, such as workout and appointment attendance, are secured even in a free trial.

"She still says now and she's like, I hate you. Your mustache is offensive to me. My uncle is a mustache guy and I hated him and you reminded me of him."

This quote illustrates the need to navigate personal objections that clients may have, which can be unrelated to the service itself, and finding a way to move past them.

• Ensuring client commitment to the program is crucial, even when offering free services.
• Specific commitments, such as workout frequency and dietary changes, are established.
• The coach must clearly communicate the importance of these commitments to the client's success.

"So you need to make eight workouts during this period of time. You need to make three appointments."

This quote emphasizes the importance of setting clear expectations for the client's participation and commitment to the program, even during a free trial period.

• The importance of feedback in personalizing a program.
• Commitment to attend feedback appointments is necessary for progress.
• Clients are expected to show up for their appointments.

"Like, I can't change your program and make it more personalized to you if I don't get feedback."

The quote emphasizes the need for client feedback to tailor the fitness program to the individual's needs.

• Transformation pictures are essential for tracking progress.
• Clients must provide after pictures to compare with before pictures.

"Because, listen, there's no way we're going to be able to know if we made progress. I can't get an after picture from your before."

This quote highlights the necessity of having both before and after pictures to visually assess the client's progress.

• Clients commit to the program by initialing an agreement.
• Speaker A offers training for free for 21 days to the client.
• A "fat tax" or "motivation tax" is introduced as an accountability measure.

"And so if you missed this as an added layer of accountability, this is to get you doing this because you said you struggled with accountability in the past."

The quote discusses the implementation of a financial penalty to enhance the client's commitment and address past accountability issues.

• Speaker A offers a step-down approach to the service sale.
• Payment options are adjusted to make the program financially accessible.
• Clients can split the payment if needed or opt for a trial.

"And so just like that, you went from $3,000 ticket to $1,000 ticket to a. And that's $1,000 upfront. So $600 up front. And you could probably split pay the 600."

This quote outlines the flexible payment structure designed to accommodate the client's financial situation.

• Every person who enters the gym must sign up.
• The goal is to ensure no potential client leaves without signing up for something.
• Speaker A suggests using a free trial with contingencies to encourage sign-ups.

"And so you should never lose anyone ever who walks in your gym because everyone can sign up for free."

The quote explains the strategy to maximize client acquisition by offering a free sign-up option to everyone who enters the gym.

• Speaker A encourages listeners to connect on LinkedIn.
• The purpose is to build a professional network related to the podcast.

"Just to let you know that we've been starting to post on LinkedIn and want to connect with you."

This quote is an invitation for listeners to engage with the host on a professional networking platform.

• The sales process is critical for gym revenue.
• Speaker A provides a mathematical breakdown of potential earnings through different sales strategies.
• Mastering the first sale is key to maximizing client conversion rates.

"Mastering that first sale is going to maximize your throughput."

The quote stresses the importance of the first sale in increasing the gym's client conversion rate and overall success.

• Speaker A concludes the current discussion and teases future content.
• The focus on the first sale was due to time constraints and the importance of the topic.

"I'll probably just talk about the second sale in the next video."

This quote indicates that there will be a continuation of the sales discussion in a future installment of the content.

• The discussion emphasizes the importance of controlling the sales process to maximize revenue.
• Comparing revenue from nine shows, the speaker highlights the difference between a low-earning competitor and a more successful approach.
• The successful approach involves prepayments and trials, increasing revenue significantly.
• The speaker explains that by tweaking the sales process, one can vastly improve business throughput and future prospects.

"This is our master out. And they have now entered it. So that is going to bring us to sale number two, which is what we're going to do in the next 24 to 48 hours from every single one of those nine people."

This quote demonstrates the speaker's strategic approach to sales, emphasizing the importance of guiding customers through a controlled process to achieve a second sale.

"So if we're talking revenue from just these nine shows...you got 7200 compared to 300, you're 20 times better or whatever. The math is 23 or four times better than the guy down the street."

The speaker compares revenues to illustrate the effectiveness of their sales strategy, showing a substantial increase in earnings compared to a less successful competitor.

• Value-based selling is presented as a method to provide more value to the customer, leading to better outcomes and higher retention rates.
• The speaker contrasts the poor results of a competitor with their own success in retaining customers through a value-based approach.
• A focus on solving the customer's problem and prescribing a solution is key to the approach.
• The importance of customer investment in the service for better retention and outcomes is emphasized.

"And the reason that it works is because you're providing more value."

The quote underscores the core principle of value-based selling, which is to offer the customer more value, leading to better business results.

"But you, because you learned how to have a value-based selling process that diagnosed...you're now able to cater your programs to people to provide more value."

Here, the speaker explains how a value-based selling process that identifies and addresses the customer's needs can lead to tailored programs and increased value.

• The speaker defines the role of coaches as motivators who help clients become invested in their goals.
• They argue that programming is not the main job of coaches since workouts and diet plans are readily available online.
• The true value of coaching lies in motivating and getting clients to invest in the program.

"The job of our job is to get people motivated and invested in doing it. And that is why they pay us money to do this."

The quote explains the fundamental role of coaches in ensuring clients are motivated and see the value in the service, justifying the financial investment clients make.

• The speaker plans to discuss bolt-on sales and the upsell process in the next installment.
• They highlight the importance of upselling within the first 48 hours to cover various costs.
• Good onboarding is crucial for client activation and extending customer lifetime value.

"I'll talk about the bolt on sales, the upsell process...which will help you liquidate your acquisition costs, pay payroll costs, pay onboarding costs."

This quote introduces the upcoming topic of upselling and its role in managing initial costs, which is essential for a business's financial health.

"If you can onboard and activate a client well, and you can liquidate that cost, then you're going to extend the lifetime value of the customer and ultimately make a lot more money and provide more value."

The speaker emphasizes the importance of effective client onboarding to reduce costs and increase both the customer's lifetime value and the overall value provided by the business.