Note: This application of the model is tailored towards the Massage Therapy industry. Nonetheless, it can be translated to any other product/service.
The Reverse Pricing Model
This model allows you to:
- Provide a much Better Service & attract Higher Quality Clients
- Rapidly liquidate Advertising Costs
- Build a better Team & remove yourself from Fulfillment
- Scale your clinic much faster & acquire Leverage
- Ultimately, crush your competition & dominate your city
Some of the fastest-growing companies are leveraging this model to take over markets by serving customers best, building A1 packages, charging higher prices upfront & becoming the logical solution for top-tier customers.
Because here’s the thing…
Customers have a problem. That they’re looking to have solved.
They’re just looking for the right person to do it.
That’s all that business is — in a nutshell.
The higher the likelihood that your solution will solve that issue – the more willing they will be to stick with you and go all-in on your product or service.
Yet, it’s up to you to really roll up your sleeves & build out that solution for a customer.
Which sadly most practitioners don’t do (or even think about).
So, let me introduce you to an important concept.
Perpetuity = Uncertainty
Perpetuity is a cash flow payment that continues forever or has no end in sight.
Many massage therapists are building their business around perpetuity, which adds lots of uncertainty for their customers.
Uncertainty of when they will feel much better, how many sessions it will take for them to feel good & even what are the right mechanisms/massages for them to get the relief they’re desperately seeking.
I mean… think about it.
Would you rather have sessions of massage therapy that go on for an undefined period of time, you just come “whenever you feel the need” & aren’t sure IF or WHEN you’re going to feel better….
Or would you rather have a Custom-tailored Approach where, based on your exact circumstances, you may need:
- 2 x Session of Deep Tissue Massage for Body Tension & Relaxation
- 1 x Chiropractic Consultation for Structural Alignment
- 1 x Craniosacral Therapy Session for Neck & Head Tension Relief
- 1 x Session of Lymphatic Drainage Session for Swelling & Lymphatic Release
- 1 x Session of Acupuncture for Anxiety & Liver Support
- 1 x Session of Naturopathic Medicine for Natural Support & Healing
Probably the latter, right?
The KEY thing is — that it’s designed for that person specifically.
But for real, not some wishy-washy salesy stuff.
Because, alternative medicine practitioners need to realize that…
The amount customers are willing to pay increases in direct proportion to the Value & Certainty that your Product/Service provides.
So it is your duty & responsibility to build it.
To further exemplify this — here’s The Value Equation designed by Alex Hormozi that will allow you to understand how to drastically increase the value your service provides.
Hormozi's Value Equation
The key here is that: anything on the Top (Numerator) multiplies, so you want to find ways to maximize these two levers.
Whilst, anything on the Bottom (Denominator) divides, so you want to minimize anything within these variables.
Basically…
The bigger the Dream Outcome (Transformation) is, the more Valuable your product or service becomes.
The higher the Perceived Likelihood of Achievement of that transformation. a.k.a. the level of Certainty in actually acquiring the results in your Transformation.
The higher the Value.
This will be a mix of Sales Process and the Mechanism your clinic creates & implements for solving the Problem.
Then, for the bottom part.
The shorter the Time Delay of that Dream Outcome, the more valuable that it is. I mean, would you rather be Pain Free in 3 weeks or in 3 months?
We all want things faster. Especially if it’s something that causes us pain.
And, at last. The lower the Effort & Sacrifice is for the customer to acquire that Transformation, the more Valuable it becomes.
So, the easier it is for a client to go through that Transformation—by having a clear-structured process to follow, with tons of clarity & support—the more Value there is.
Does that all make sense?
So, basically. If you maximize the top & minimize the bottom, you’ll be able to pull on the levers to increase Value, therefore Price.
For example – If you get someone enrolled on a Pain-Free In 7-Weeks Healing Plan.
It’s very different to trying to sell somebody on a 7-Pack Package, with no true direction or promise— which is what most massage therapists do.
You need to create an experience that is custom-tailored to truly lock them into your Brand & Clinic long-term.
Show Them You Care. By creating that offer & service that truly fits their needs.
You’d be surprised how customers will turn into Raving Fans of your business if you’re able to create that wholesome solution & TRULY take care of them.
That is what’ll differ between selling $699—$1499 packages on autopilot vs. having customers that show up 1–2 times and never come back & you don’t know why.
So…
By maximizing the Value Equation above: the more Value we provide, the more we can raise our Prices until we find the sweet spot of what our customers are willing to pay based on our unique offer.
Now, look out for the coming Letter, which will explain more about Reactivating Your Customer Database to print money for your business.
