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High-ticket product is a term that is used when referring to products or services that are of a higher price.
It is important to note that for a product or service to have a high price doesn’t necessary mean that it is of higher value even though it is automatically assumed to.
Why high-ticket sale?
Selling in itself is not an easy job, although when you become very good it looks as if it is easy to do.
Making more profit on a single sale will always be a winner versus selling many products to make the same amount of profit.
So, the concept of high-ticket sales is based on the fact that since selling as a whole is not that easy, why then should you waste your time selling products or services at a low price? When you can as well use almost the same time and energy to sell something of higher value and make more profit.
That is how the concept was born, where people are encouraged to sell only products or services that have a higher price and thus a higher profit margin.
Take, for instance, if you, as a seller, decide to buy a notepad worth $10 and then, when you want to sell it, you sell it at a 20% profit, which will make it $12, and you profit only $2.
Now take the same scenario of selling at a 20% profit and apply it to selling a laptop that you bought for $1000; 20% of that price will make it $1200, giving you a $200 profit.
Furthermore, in the case of a laptop, you can easily see that the initial capital to buy the product is much bigger than the notepad, but because of the higher initial price it is now easy to make more from the sale.
Something you should also note when dealing in high ticket product is that because the value is perceived to be much more than the lower product items, it makes it even easier to price the product or service for more.
For example, the same laptop that was sold for $1200 can easily be sold for even $1300 or $1400 and this is because the value that a laptop provides will always outweigh the price and that alone is a great incentive for anybody interested in it to pay more money.
Importance of having a high-ticket product
Having a high-ticket product gives you the opportunity of offering more value to the customer and getting rewarded for it.
It is very important to have a high-ticket product or services so as to be able to carter for people who want more than the average clients.
Remember what I said earlier that “for a product or service to have a high price doesn’t necessary mean that it is of higher value…”
However, because people already have that perception, it will do no harm to capitalize on that assumption and have a product or service that has a higher price even if you sell low ticket products.
In doing this you will tend to keep clients that would have gone somewhere else to pay for other supposedly better products.
It is worthy of note that any product or service that you put out as a high-ticket product should have a corresponding high value that will make the extra money that a client spends on it to be worth it (because if it is a bad product or poor service then you might have just lost a valuable client)
How to create a high-ticket product or service
Creating a high-ticket product is a very easy concept, although it may take additional work to put things together.
To create a high-ticket product, all you need to do is take the low-ticket product that you may already have and look for other ways to improve on it by adding more features and functionalities, changing the base material with which the product was created, making use of more durable materials, and also changing the packaging. Voila! There you have it: a new product that can be priced higher.
To create a high-ticket service all you have to do is to add additional services and programs to the existing services (i.e extending the time, having an additional private session, hopping on a zoom call or generally doing more than the usual scope). This is very important because it will make the additional money worth it for the client.
Remember, the price has to be very much higher than the normal product or service, that is the only way that you will erupt the desire of the clients to want to buy it, because they know that they will gain an immense value for buying it.
Who can sell a high-ticket product?
High-ticket sales are for available for anyone who has the interest to adopt it.
Over the years a man known as Dan Lok has gone on to further popularize this system and he now refers to himself as the king of high-ticket closing.
However, it is easy to see that people tend to sell low ticket products just because they think that it will be easier to get sales and by the way many others are doing the same thing, and even though this may sound like a reasonable point, it is a flawed one.
In fact, just because many people are selling the same low-ticket product should be a pointer to the fact that you can not exclusively raise your price since people can easily get the same product for a cheaper price from somewhere else.
So, to sell a high-ticket product you must be ready to do the extra work of improving the product and differentiating it from the rest of the product out there.
Also, you must understand that because the price is much higher than other products and services, that you may not make as many sales on a constant basis like the cheaper products, but for every sale you make you will be making more in profit than the for the regular products or services.