The Value Ladder for Endurance Coaches

I know that I promised to bring you a tip every day for the next 30 days about improving your endurance coaching business to make it the best version of your endurance coaching business that you can make as, particularly during these challenging times. It's Covid-19 and the financial effects of that.

So what I'm going to going to talk to you today about is a concept called the value ladder. The value ladder is designed to maximize the revenue fo your business by creating a "ladder" based pricing and value system for your products and services.

The transcribed version is below but the video is the best way to consume these daily tips.

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The Value Ladder

So the value ladder means -- like steps within your products and services that are based on pricing, and also the readiness of your customers to buy things from you. This is called the value ladder because it's not just about money. It's about value as well -- so price, and benefits, etcetera, as the actual value.

Think of the value ladder as steps, and each step has a different type of product and a different price point. So the first step of the value ladder you might have some dollars here. So on the bottom step, you have a low price point and then as you step up you have a higher price point with higher-value products. And then you have the next step is given even more.

So for example, when your customers first come across you, they're very unlikely to purchase a big, high priced ticket. So one of the benefits of having a value ladder is that people can start off spending quite low money as one of their first interactions with you. And if that is a successful process, then they might consider stepping up the value ladder to the next price product, and then finally up to the next price again.

Incorporating the Value Ladder concept to your endurance coaching business

So, an example of an endurance coaching business -- this bottom rung of the value ladder might be like a single priced or one-off price training plan that's quite cheap. A good number to think about for the bottom rung of the value ladder is somewhere between $12-$20. They could be US Dollars or Australian or New Zealand dollars. With the conversion rates and cost of living, etcetera, that's probably about the same.

So you want to think about a $12 or $20 product -- and don't think 'Oh, that's too cheap' or whatever. You just need to offer something that doesn't cost you a lot of money to create but has enough value for $12 to $20. So that could be a downloadable PDF or a training plan or a set of Zwift workouts or something like that packaged into it.

Now is the perfect time to think about this first rung

With Covid-19 going around, this is good for your business. It is good for your business all of the time, but with Covid-19, people are stuck at home. You should probably create these products and services based on what people need now.

So, at the moment, they need things that they can do from home. You could incorporate Zwift workouts, cord workouts for swimming, and strength workouts that people do with their own body weight. That's something.

Moving up the value ladder

The next one up the value ladder, that could be like an online membership or something. Not not a one-on-one coach service. This could be anywhere between $50 and maybe $200, somewhere in there. So that could be a recurring subscription or a more expensive training plan.

Then, of course, the top of the value ladder is your premium one-on-one coaching services. So I've described that as like people stepping up the ladder. But it's not just that so that's maximizing your income for someone who might travel all the way up the ladder.

Giving your clients options without losing them

The other thing is that some people will only ever get on to rung one. Some people will go straight to rung two. Some people go straight to rung three. But they won't all go straight to rung three. Some will never go straight to rung three, but they might get you to step them up.

So that's why you should have these different rungs. It's not just about moving people up, but also allowing them to go down if they need to.

Imagine a circle horizontally divided into steps. Imagine that whole circle as all of the customers that might ever buy something from you. If we look up this top rung of the ladder, this might be your one on one coaching services. If you only ever offer that, look at the sections below. This is big potential market.

This is all money that you could be earning that you'll never get because these people, at least 2/3 here, are never going to buy your top range of products. Then, if you have that rung of the ladder, you open yourself up to earning a lot more revenue. Remember, it's not what you're always prepared to offer but what the market wants. So, sometimes a big part of the market might want something that you're not offering and that's got a lot to do with pricing and value.

You want to create the bottom rung of the ladder -- so you can split this up in the four or five or whatever. It's not an exact science, but this concept hopefully makes you realize that if you restrict your pricing and the value that you offer within your overall products and services, you're restricting the number of people that will ever purchase stuff from you. And you're restricting your overall value.

Automating this process for business optimization

The good thing about the bottom two rungs is that you can automate a lot of this. Training Tilt can help you with that, along with other marketing automation platforms. You can then send emails out and some advertisements. But you don't even need to do that. You probably got an existing audience on your social media that would purchase one of the first or second rungs. So that's a way to open it up.

At the moment, of course, you need to maximize the revenue that you can earn. With everyone endurance athletes really need certainty in their lives. And at the moment they're not going to have certainty at all. So pricing is probably something around that that will affect them as well.

So in the top one top-level pricing, you might lose a few clients on that. You want them to be able to go somewhere else so they could drop down the ladder. And that might be a good thing rather than them just disappearing somewhere because I'm sure some other coaches that are offering these other lower-priced, lower value products. You might lose some customers to them if you don't offer them yourself. So, hopefully, that helps.

Tomorrow, I will actually do tip number two and I'll take you through Training Tilt and how you can actually practically create these. But for now, you should be thinking about your ideas about -- most of you will already have the top rung. Some of you might have the middle rung in the bottom rung. But think about what ideas that you might have around that so you could create the content around that -- like the workouts or training plans or something like that.

Tomorrow, I'll take you through how to set them up with Training Tilt with e-commerce tools and we can go from there. All right. Thanks for watching and I'll talk to you again tomorrow. Cheers!

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