I don’t know if you can hear, but I’m actually quite sick. That’s why my voice is not as optimal as usual. But, I’m not going to let that affect my performance. Okay, ’cause I’m here to deliver. Okay, so get ready to take notes. How to sell high ticket products and services? Questions number one, what would you consider as a high ticket for you? Just yell out the number. Ten grand. Ten grand? 100 grand. – 100 grand! Okay. 10, 20. – 10 grand. Okay. 5, 10. – 5, 10? – 20k. – 20 K, okay. Ten thousand. Ten thousand. Ten thousand. Half a million – Half a million, yes. So, we’re talking anything from, from anything.
So depends on your comfort level, some people might say, “Oh, it’s three thousand, or five thousand, or 10 thousand”. So, what I’m going to share with you today applies from as little as three thousand dollars to as much as. It can be half a million dollars, even a million-dollar contract. A lot of the strategies and the tactics that would apply have sold everything in-between as a $2,000 thing, $5,000 thing, $10,000 thing. Last year, my business partner, we sold a contract to a pharmaceutical company for $800,000 U.S. One sale. $800,000 U.S. So, it’s the same. What I’m sharing with you, it’s the same.
It’s the same psychology, the same ideas would apply. So don’t feel like, “Oh, Dan what you’re saying may not exactly apply to me”. It’s the same, okay? So, let me go through the seven reasons why you want to sell high prize products and services that you might not aware of. You might not aware of it. The first reason, reason number one is, more profits and less what? Hassle, less hassle. When you sell a high ticket item, you make more, higher profit margins.
Everybody knows that, but here’s the thing. Within your marketplace, most of your competitors, my guess is, they’re not comfortable, selling at a high price. Or they don’t know, how to sell at a high price. So, very few companies, notice, yes, “Dan, there are companies that do well, selling, low margin products, such as Walmart.” Right? It’s Walmart. But you notice, if you look at history, before Walmart, there was Kmart. Where’s Kmart? Gone. – Gone. Before that, there was Sears? Where’s Sears? Gone. – Gone. Almost gone. Almost gone, barely breathing. So, what happens is, when you are selling at a low price when you’re in the commodity business when you’re selling to the general public. The problem with low prices is this, it’s not a sustainable advantage, in business.
Write this down. Competing on price is not a green advantage in business. Because, it’s very, very easy, for someone incoming, to your space, and say, “I’ll charge you less. “You charge x, I’ll charge y.” So, your advantage of “Oh, we guarantee the lowest price,” some of them, could come in and say, “We’ll sell 20% less than you.” Your advantage, it’s gone instantly. Okay, and they could maybe. How the hell do they do that? I mean I’m barely making a profit. Well, a lot of companies. They go into marketplace knowing, they’re basically using their capital, and say, “I’m gonna grab market share, “I’m gonna acquire these customers at a loss. “Just to put you out of business. “Just to put you out of business.”
They might know, “Well, you probably won’t last six months, “we have enough cash to last one year, you’re gone.” When you’re gone, then they become the game in the marketplace. And then they jack up their price again. So, and also customer infrastructure. To serve more clients, at a low price, requires, bigger, more infrastructure, i.e. more customer service, bigger office, more people, more shipping, handling, everything, it’s more. So, it requires a more complex infrastructure. Personally, and this is my personal preference, I like to keep my business lean, mean and simple. I’m not a big fan, and I know people make a lot of money doing that. And that’s a honer to them, just my personal preference, I like to keep my business, lean, and mean, and simple.
If I can hit my goal, my financial goal, with 1,000 customers, 10,000 customers, I prefer 1,000 customers. If I can hit my goal with 100 customers, I prefer 100 customers, then 1,000 customers. So, more profits, less hassle. But here’s the cool dollar help, business is a game of margins, not volume. In fact, repeat after me. Business. Business. It is a game of Margins. – Not Volume. Volume. Some businessmen say, “But Dan, I’ll make it up in volume. “And I’m doing half a million, my margin is like this. “Oh, if I make three million, then my margin would go up.” Don’t bet on that. Don’t bet on it. Do not bet on it. So, business is a game of margins, not volume.
I was watching, how many have seen the show the Profit? If you guys have not seen the show, watch the show. I don’t watch a lot of TV shows, but that’s a great show to watch. It’s like a mix of, Kitchens, combined with Shark Tank, Dragon’s Den kinda, type show. So, the Profit was watching one of the episodes, so basically, Marcus, who is the CEO of Camping World. He goes into this business, and try to fix them, and help the business owner. He would put in the money, but he’ll also put in the time and effort, and invest his expertise in turning around the company.
One of the episodes I was watching, Marcus, went to this meatpacking business. The business, the meat business, has been around for many, many, many years, I think if I remember correctly, 75 years, or something like that. They’re doing 50 million dollars a year in sales. 50 million. Is that a little bit of money, or is that lot of money? Lots of money. Right, 50 million sales, 400 grand in losses every year. “You might think, “How the hell could a company do “50 million dollars a year in business, “and yet, lose 400 grand.” And also, they’re four million dollars in debt.
In debt. In loans, and everything else. And when Marcus looks, he looks in that guy’s business, he has 30k, 30k, 30 grand, cash in the bank. To say that the business is in trouble, is an understatement, okay. So, if you think, “Wow, 50 million dollars in sales.” So, because business is a game of margins, not volume, it doesn’t mean anything. This business is so close, when Marcus looks at the number, they’re weeks, weeks away from failure. Weeks away. 75 years of history, weeks away from failure, so think about that. So guys. Do not believe what the ladies tell you, because of size matters. Size matters, okay. I’m talking about transaction size, some of you are thinking about something else.