How Do You Handle Pricing With Packages

Created by Comet Suite Support Team, Modified on Tue, 17 Jan 2023 at 10:29 PM by Comet Suite Support Team

Hey, how's it going, man?

Hey, man. Good. I'd like the heck out, just smooth and clean.

Back at home in South Africa now.

So now you got to be proper. You got to look good and stuff like that.

So there's a couple of things actually, we went to see a client today. They were booking bot a CRM, nothing more than a CRM. I sold them on the CRM, but then I'm like, hang on, I've got something else to show you.


So obviously, I showed them White Label Suite, and his question to me was, can we put exclusivity agreements in place? Because I don't want any of my competitors to I love that question.

I love that question. So my answer to them, I've been cheeky. When I've been asked that before, I've been cheeky. And I said, you know what? Your competitor asked me the same thing. Aren't you glad that I said no to him? So I have been cheeky. I have said that before, and I told the guy I was joking. But I followed up with this. I usually follow it up with something like, look, we can't do an exclusivity because we don't have exclusivity, and somebody else may also be chatting to your competitor and have services that are available. So the trouble is that I can't make that offer to you. But here's the reality. If you don't grab it and they do, then you're at the disadvantage. And that is literally what I say.

Okay? Yeah, I told her. I said, Listen, for a premium, I'll make sure that if there's a client in your radius or within your niche, we can obviously come up with an agreement that we won't work with them, but I can't guarantee that someone else doesn't. I mean, obviously, I wanted to come across Label thing. It's like, our business is very keen.

On it perfect, man. If he's willing to pay that premium and you do that deal privately and just say, look, I will make you the promise that I won't approach these specific competitors in this space so long as you pay me X. And if he agrees with that, go for it, man.

Yeah, he was actually blown away with it because he's in, like, an engineering space. He targets, like, auto workshops, engineering suppliers. He's been trying to find these people for years, and within five minutes, we found clients that he could reach out to you.

Good job, man. That is awesome.

And that brings me to my next question. You've obviously seen you can obviously assume that I'm pretty good technically, like, marketing wise. I know exactly where I want to go. The thing I'm struggling with the most is pricing, okay? And I'll tell you why. Because I'm trying to build, like, this killer SAS product that we got White Label Suite and we got FX, and we've got an Ad spy tool. So just a business would not need anything else. But I'm just struggling with pricing, especially a lot of the market in south africa. Like a 497 price point I thought was, like, going to really scare them away. I've I've noticed that it's not as bad as I thought it would be, but it's still, like, it's a massive roadblock. I looked at your pricing on the common suite website, and I noticed that you sell the 1000 leads package for 297. So I'm leaning towards the pricing that you guys have of 297-49-7997. I just like to get your insight into we would offer, like, a full CRM. I know on your pricing packages, you cut out a lot of the CRM stuff in the 297 and then offer more things as you go on.

I just want to get your insight into those price points and what you think is, yeah, sure. Like I said, at 497, that's a done for you system that Debbie Walt to offer. I don't know if I'm selling myself short of that.

But there's an easy way around that, brie the easy way around that is charge an annual, and interestingly, if you go 497, I know what you mean. It's a bit of a pill to swallow for a business owner, right? So a small business, $500 a month, it's okay, but you got to be on top of your game there. And obviously with GHL, with opex, with wide level suite, you've got a whole suite of amazingly cool things. But one of the things so personal story, when we started with comet, as so many of us do, any dollar that came through the door, we would grab it, right? So it was just like, get the sale, get the sale, whatever we need to do. Get the sale, get the sale, get the sale. And we brought on a whole bunch of people at 297 with zero setup fee, and we drowned. We actually got ourselves into a massive, massive hole where we were so buried in fulfilment that we couldn't get the next client. We were absolutely buried as soon as we added the $1,000 as the set up fee. So the first month is $1,000. It finally allowed us to employ someone to do that task so that we could keep the momentum going and just fulfil on the back as we were going.

So there's that kind of tipping point when you're talking pricing that you need to charge enough so that you can employ someone to do the work, because otherwise you fall into that trap where it's feast and famine. You've got work coming in and everything's money in the bank, and then there's nothing for a while. But one of the things that we found was really super impressive was price it up monthly but charge annually. So it's like 497 a month. But I want to get you started. So 497 a month, it's going to be $1,000 set up if you take the annual fee, if you take the annual option, we actually waive the setup fee and you save two months. So we were 297 became 29 97. So $3,000 as an annual fee, 497 becomes 4997 and the 997 become 9997. So when you're getting paid 3000 upfront, 4000 upfront, you can hire someone to do the work because it doesn't then take a long obviously, your monthly income is going to adjust as you go. The other thing that we noticed with the annual fees, Clinton, is that it reduces churn. If somebody is actually sorry, let me say that in conjunction with the setup fee as well.

Guys, charging a setup fee is the best thing we ever did because it reduces churn. Somebody who is paying monthly can turn the tap off, all right? But the more they've invested, they don't want to walk away. So it's like, I've already put $3,000 into this thing. I'm not going anywhere. So they work it through. They make sure that it's something that.

They use a set up fee. Like we're going in with a set up fee, but we also using it as a kind of a closing technique. If we see the deal is not closing, we can waive that fee.

So in that case, double your setup fee. I like that approach. I've used it before as well. We waived the setup fee. If you're getting started with us right now, the trouble again is that if you don't get that set up fee, you won't have enough money to get more stuff and you need more stuff to be able to handle it. Double your setup fee and then harve it as your closing tool. We charge $2,000 as a setup fee, but for you, I'm happy to do it for $1,000. If you wanted to get started right now, same effect, but still leaves you with money in your pocket kind of thing. So in terms of pricing, guys, we have a slight advantage because we don't have to pay the 150 for the licence for white label suite. So we've got more margin at 297. If I was selling in the same shoes, I would not go lower than 397. Bro, for what you're delivering, it's massive. I mentioned her name last week on last week's Call. The person behind Funnel. Gorgeous. 1400 SAS clients. What is her name? She was a speaker at Dallas in the in the thing and and somebody shouted her out last week as well.

Julie. Julie. Thank you. Julie Chanel. That's right. Exactly right. Thanks, Carl. So, Julie 1400 SaaS clients, and her model is 97. She uses the SaaS mode, right? So she uses SAS mode and she switches off some of those advanced modules. They are available only for, you know, paying higher fees. 1400 at 97, SaaS only. But here's what's really interesting. She charges for everything else. So she charges for she charges for onboarding, she charges for support. You can buy support packages of her. She's has the massive training environment, which is her upsell. So she's selling a $3,000 programme where she's training people on how to build better funnels so you can build a massive business on a very cheap SAS product. And GHL make that really available. So, again, that might be a great option for you as well, is to downsell the CRM only. Again, if I was going CRM only, I would never go cheaper than 297 for the full pack, for everything. If you want to go 97, turn off a whole bunch of stuff, turn off the email marketing, turn off the.

Other stuff, because today we sold it for 197 because the market has a little bit different, too.

Yeah, sure. 197. Did you get a set up fee on that one? Yeah, you got a set up fee. Amazing. Great. So a couple of $100 in the bank and then a monthly set up going forward. And again, think of new snapshots and that kind of stuff that you can install on that client and do upsells later on. Upsell to other modules, upsell to uphills, upsell to leads, upsell to all that sort of stuff. So down sell to if you can't get the deal across the line, go CRM only. Get them on board, get them up and running, and then upsell up, hex leads all of the other tools and programmes that are available out there as well. Do a great job at 197 and you'll have their trust for adding another $200 a month for this and $500 a month for that. So one of the other models that I've seen, the guys that run our mortgage, they're really big in mortgage broking. And again, I think they've got more than a thousand GHL accounts. They're selling leads as the foot in the door. They are not marking it up. Sorry. They are marking it up.

They're selling it at $200 a month. At $200 a month, they're giving a free CRM and the leads tool, they're not making any margin whatsoever, but they're doing all of their margin on the coaching and the training, and they're super expensive at that. So they're doing the mortgage broking thing. They're selling the system with leads at $200 a month or 197 a month. They're free CRM 1000 leads a month. We were going, what the hell, guys? You're crazy. But it's a lead magnet for them. They're getting people into their funnel and they're upselling them their $30,000 coaching package. So I guess it depends, if you want to build a SaaS company, which means service based, then you want to keep the software to be expensive enough that you can afford to staff up in the background and support it. That would be my thoughts there, dude. Does that help?

Yeah, thanks.

Cool, man. No worries. I know we're kind of round and round around, but we want to make sure that it's expensive enough that you can hire the worst thing we ever did. That we nearly quit when we were buried. Like, we were not making any money whatsoever, and we didn't have enough money to hire a staff member. And we were working 18 hours, days trying to get out of that trench. So I do not wish that on anyone. So cool. Thanks, Linda.

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