I agree that in some cases you may want to give potential customers a small sample so they can experience it and want more. I don’t have any problem with that. My concern is for the consultants who lead with freebies, specials and discounts.
Below you will find a segment from Marketing Coach, David Newman on pricing and fees. He is talking about a different field, but it’s very applicable to anyone in sales. He’s referencing target markets and how some people are Timex people and others are Rolex. The comments in parentheses are mine as it relates to your Scentsy business.
“Myth: You will lose business if you charge too much. (If you don’t give away freebies or offer personal specials or discounts)
Truth – You will lose business if you charge too little. You will work with the wrong clients. People buy who they are. Some seek out cheap and are happy with that. Others seek out quality, meaningful value and seek out high fee and premium products. If you charge $5,000 – $10,000 you will turn OFF the Freeples and people lining up for freebies. You’ll REPEL the Cheaples. You’ll ATTRACT your people. Your pricing matches your positioning, your value and your outcomes.
(If you’re trying to attract customers by giving away freebies, you will likely get people who will come around only for the freebies or discounts. It will cut into your profit margin, cost you money and they will not be back to buy at retail once you’ve established you’re willing to give, give, giveway. You want customers who understand and appreciate the value of what you’re offering. They’re willing to pay retail because you’re giving them quality products and outstanding customer service).
Myth #5: Every audience (customer) is a good audience.
Truth – Every audience (customer) is NOT for you. (You don’t want to attract the Freeples and the Cheaples.)
By charging too little, and staying focused on groups who can “afford” your too low rate, you’ve cut yourself off from the entire top tier of clients who are looking for top tier speakers who charge top tier fees.
(If you’re giving away too much, and staying focused on the people who only want you for your discounts and gifts, you’ve cut yourself off from all the customers who are looking for top tier consultants to service their fragrance needs and will pay retail for what they’re offering.)
You can’t see THEM (the good customers) – and they can’t see YOU! You are hunting and fishing in the completely wrong territory. You’ve cut yourself off by thinking small, charging small, and working small. If you start thinking big, charging big, you’ll be working big. They will start to come into focus. You will see them and they will see you. You will start to transact business with a completely different tier of people. You’ll move away from the freeple and the cheaple and move toward the Rolex. People buy who they are; Rolex people never shop for Timex.“
I hope this has given you a mindset shift in the way you approach your Scentsy business. There will always be far more customers needing a good consultant, than there are quality consultants to service them. You can find these customers once you stop giving away the farm, branch out of your comfort zone and make yourself accessible to those who don’t yet know you exist.
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About the Author: Laurie Ayers is a Michigan work from home mom and a Superstar Director with Scentsy Wickless Candles. She enjoys helping men and women start and maintain a home based business in the US, Canada, Mexico, Australia, New Zealand, Puerto Rico, Germany, Ireland, UK, France, Austria and Spain. To download a FREE Start Up Guide which provides more details about how to start a home business as well as to learn about our compensation plan go to www.thrivingcandlebusiness.com/how-to-start-a-candle-business/