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Utilise a Value Ladder to increase sales

Updated: Jul 21, 2021

What is a Value Ladder and Why Should You Build it into Your Business Plan?

There’s one thing that all businesses need to be successful: clients. However, finding new clients can be a time-consuming process, time that could be spent on developing your offering and selling more to those clients that already love your product or service. This is where the value ladder comes in. A value ladder is a way to acquire new clients with an initial free offering followed by further offerings that increase in both value and price. The result being that you build trust and maximise your ongoing relationship with your client whilst increasing your revenue. So, what might a value ladder look like? Let’s take a look at cupcakes.

Imagine you’re a new online bakery and you not only sell sets of six cupcakes but you also offer subscriptions.

As delicious as your cakes might be, it’s unlikely a new client will go straight for your premium and most expensive offering of a monthly box of cakes. This is where you break down your offering into bite-size chunks (excuse the pun!) that are easier to sell, starting with an initial free offering and building to the premium offering.

Step 1: Initial Offering: Offering a free giveaway of cupcakes Step 2: Lead Magnet: Offering one free cupcake with every cupcake bought Step 3: 1st Tier: Selling a set of six cupcakes Step 4: 2nd Tier: Selling a box of cupcakes Step 5: Loyalty Offer: Selling a monthly subscription of cupcakes

Once you can see a clear overview of your business value ladder all you need to do is focus on getting your client to enter your sales funnel with the initial offering, thereby saving you valuable time and not overwhelming prospective clients with premium offers. It often helps to have a clear picture of what these additional up-sell products or services could add to your revenue from your existing client base. We are here to help you understand these numbers and plan for the bigger picture.

Of course then it’s a matter of providing consistent and effective delivery of your product and services. There's a great article which could prompt you on areas to work on here

At Grace Team Accounting, our Tauranga Accountants not only offer standard accounting services but will help you to create and sustain long term value in your business plan through ongoing business coaching. Get in touch today to arrange a time to chat through your business needs.

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