The word value gets thrown around alot in business. Many sales gurus will say you should add more value. It’s mentioned in most business books. They say it’s the main thing that helps you to overcome price.
But when is the last time someone stopped and DEFINED value? What is it exactly?
If you read 100 Million Dollar Offers by Alex Hormozi then you will recognize this as “The Value Equation”. I completely agree with it and I’m sharing it with you here.
Here’s the 4 forms of value…
1.) Dream Outcome – do you offer what I want as my desired result?
Maybe you do offer it but if you can’t articulate that, you will have trouble selling it. That’s why it’s so powerful to not use your words but the words of the customer to show them you have the solution to their problems.
2.) Speed – how quickly will I get that result?
Faster is more valuable, slower is less valuable. That’s why Amazon dominates the market when you can get what you want in 1-2 days. Heck, in densely populated downtown cities they offer 2 hour shipping which is nuts. In fitness, if you sell slow results that will be perceived as lower value.
3.) Perceived Success Rate – what’s the likelihood I will achieve my result?
There’s risk in every transaction. The company or the consumer burdens that risk. The more confidence you have in yourself, the more risk you should carry since you’ve done it 100x while the customer is doing it for the first time. That’s where guarantee or risk reversal come into play. If I perceive there’s a good chance I will succeed, I will buy. If it’s GUARANTEED I will succeed, you increase your chance of yes at the point of sale.
4.) Effort and Sacrifice Required – what must I start doing and what must I stop doing?
This level of value is based on how effortless you make the result. If you can give the person ONE THING that dramatically changes their body, you are providing value. But if you verbally fire hydrant them with things to change in their life that is far less valuable.
That’s the 4 versions of value according to The Value Equation.
So, what are some practical examples that we provide in fitness coaching?
One example is designing a workout for our clients. It’s a component of reducing effort on their end because they don’t need to build it on their own. But they do have to sacrifice time. That’s why short, intense workouts are so valuable vs a 60+ workout. Less time for better results!
Another example is constantly posting before and after photos of your clients on your social media and having some posters in your sales office. This is a part of the “perceived likelihood of success” part of the equation. If I see lots of proof, I trust that I will be successful too.
I can go on and on about this because I love this stuff but I want to keep it short and simple. Here’s some great reflection questions…
- What am I doing that’s directly leading to the dream outcome of my clients?
- How can I get them “a result” faster? Might not be their total result but quick wins help us stick to the plan (Ex: dropping 5 lbs faster in the first 30 days)
- Ask yourself what are you doing that is directly defined as value?
- Am I coaching the client to the single action that will lead to the biggest result?
All good things to think over so we can be wise with our time and big with our impact.
Happy selling!!