Hi, it’s Sean D’Souza from pscyhotactics.com. Today we’re going to cover this topic the Yes and Yes factor so what is this Yes and Yes factor. The Yes and Yes factor is a factor of pricing. Understanding how you can create your prices, how to increase your prices─ enables you to get better prices for your products and you services but it also helps the customer. Amazingly, you customer wants a choice, and the Yes and Yes factor enables your customers to get that choice and for you to give that choice and for you to get higher profits. Sounds like a dream. Well let’s find out exactly how the Yes and Yes factor works.
So, what are we going to cover today? We are going to cover the concept of the Yes and Yes factor but only the introduction. The introduction will show you exactly what is the yes and yes factor and then we’ll start to look at why the yes and yes factor works and finally what we’ll start to look at are the five elements that you need to put in a price grid.
Now a price grid is a form of line or online, ─ you can—you have to buy now button. So you going to start to look at those factors and we’ll start to look at how all these works. So first, let’s go to the top let’s start off with what is the yes and yes factor.
Now any product now in this case, adobe creative suite four is a product and when you’re selling a product your just selling a product. Your selling service you’re just selling a service. Instantly, we can change these dimensions, instantly we can change the effect of how the customer behaves by adding one more factor. So we add a product and a bonus, what is that bonus? The bonus could be a workshop. It could be a CD, it could be just about anything, training or special features. When you add that simple bonus, automatically look what happens in you brain as a customer. Which one do you want? Do you want the one in the left, which is a regular? Or the one in the right which is a premium?
Almost instantly you want to blow away the regular, you don’t want it. You want the premium. Understand what’s happening. You don’t know the difference between the regular and the premium terms of price. Still you want it, you just want premium. You don’t know the difference in the benefits or the features. You just don’t know the benefits of each. You probably haven’t even used all the benefits and features from the previous version, yet you want the premium version and you want it now. You don’t want the regular version no matter great it is, and this is the basis of the yes and yes factor.
Whether your selling a refrigerator, or your selling T-shirts, or microwaves, or computers, or just about anything, what happens is we’re always selling the product as is and customers want a choice and where not giving them that choice. So here’s how the bonus works. The bonus works in a very simple concept and that is, a factor of just adding a little bit, and this little bit here is, as you can see there’s a coffee, ice coffee on the left, ice coffee on the right. What’s the difference? The difference is simply that muffin, that delicious chocolate-brownie muffin and that makes a big difference because instantly the customer wants the one in the right. The bonus acts is that it attractive, and what’s interesting is that a customer is willing to pay for the upgrade. We’re willing to pay there muffin as long as it’s not full price. So if the muffin costs $3.00 then we’re willing to pay a dollar and fifty for that muffin as the bonus.
Now we do this because we want more value, that’s the most obvious thing of all. And so you start to see that you can change the whole mindset of a customer in an instant by just adding a bonus. Our mind is absolutely set on the bonus, we’re not interested in the regular and premium, which is why in the first instance if you’ve got a product or service, you want to have a concept of the regular and the premium, and this takes us to the core concept of the yes and yes. What is the yes and yes?
The yes and yes is simply an option. Which means that you’ve got a regular and a premium? It’s not a yes and no. What’s a yes and no? If you’ve got a product, and its just a product well what you’ve got is a yes and no because your saying I’ve got a product and you can buy the product or you can buy product or you can buy the product, and you sound like a robot because your not giving the customer a choice. And yet, when you change that format and you add in a little bit, what you’re starting to give is a regular and a premium and you add in a little bonus. That addition of a bonus starts to create what is a yes and yes instead of a yes and no.
So what’s so really, really interesting is that price becomes secondary so, once a customer decides they want to buy your product or service, they have to decide that they want to buy your product or service. You can’t just jump in and say, “Hey, I going to increase the price.” Prices become secondary because they don’t want to buy the regular they only want to buy the premium. So, it’s very interesting and when we provide the right price structure, when it’s done right you’ll─ it’s amazing how customers will always choose the premium and never the regular.
So let’s just do a quick summary. So instantly, want the bonus, no matter what the product or service. The second thing is the difference between yes and yes and yes and no. Yes and yes is when we get a choice as customers, yes and no is when we’ve got no choice and most products, most services are usually just yes and no. So you go into any website and it’s just this option, and that’s it. You don’t get a second option. And once the customer is ready to buy, they want to buy a premium option so price becomes secondary and yet we don’t use this concept of price and premiums and yes and yes. So that takes us to the second section, which is how to construct a yes and yes. We’re going to look at how to construct it so that we get it right.
Now, the construction of yes and yes works in a very simple concept. You’re working with the very same product. So as you can see these products are identical. This ice coffee on the left looks exactly like the ice coffee on the right And so I want to bring this to you note just because people make a mistake. You noticed this is coffee on the left and coffee in the right. They’re the same product but they’re not the same product. When you change the parameter, any parameter, you are changing the product itself. So you can’t have a different type of coffee. On the other hand you can have a different type of size, so when you look at it, you start to see a different size. Well, the coffee has to be exactly the same; the product must be exactly the same so you start of with the core product being exactly the same before you move ahead. So this is the most important thing, step one is that the product needs to be exactly the same in every respect. It’s a duplicate; it’s a twin of the other product.
So that’s step one, step two is we start to add a bonus. So exactly the same, exactly the same and then we add the bonus and suddenly you start to see, this one is not exactly the same as this one. So the one in the right is now more magnetic, more desirable, and that’s a desirable bonus. So we add a desirable bonus, then we start to add a price that’s step three, and you can start to see that’s four dollars, and that’s four dollars-fifty, but what’s the value? The value of this coffee, the ice coffee in the left is four dollars. The value of the coffee on the right is six dollars why? Because the─ you know the cost of the muffin, you can do the math. It’s not a problem you can work it out. And so, which one becomes more desirable, instantly the one in the right becomes more desirable. It becomes desirable because we know that we’re buying the value not the necessarily price. We already decided to buy the coffee; it’s all like we’re going. “Ugh, let’s step into the store and buy a coffee.” No, we’ve already decided. Once we’re sitting there, what we want is the most desirable option, and the one that gives us the most value is the one that we want.
And so, we start to see this basic versus premium with any product or service. As soon as you start to get an add on, that’s the one I want, I don’t want to look at the basic, I want to look at the premium. So you can see, in this website strategy master class, there’s a basic option and a premium option. Guess what everyone takes? This is more important because for instance, this one is a workshop. Now, if you were to pay for a workshop, what would you want? Technically the answer is you would want a workshop, right? So would you travel and you’ll stay in a hotel and you’ll do all that stuff because you wanted a workshop. And if you ask customers what did you buy, or what, what did you set out to buy in this said workshop? And yet, most customers, and I say most when I mean 98 percent or 99 percent almost every single customer will buy the premium, why, because they want that added bonus.
Even though they are saying they want the basic, they’re buying the premium. That’s how we are as human beings. We want more value for less. To get this more value for less, we have to actually build a checklist because we have to get this right. So what is on that checklist, we already gone through it before. Well, the first thing it has to be a clear upgrade. As you can see, there is a clearer upgrade between the coffee here and the coffee and the muffin there.
Secondly, there’s a very clear visual, or desired bonus so you can decide to see a desired bonus here. That’s the one thing that makes us choose option two instead of option one. Then, a visual difference you can actually see that they are different from each other. The fourth is the price difference. Now there’s got to be a price difference 4 dollars and four dollars fifty, or whatever the price difference. And finally, something that we don’t see here is the call to action. That on every product or service you need to have a go to action or a buy now button or whatever. So, you’ve got this yes and yes checklist which is clear upgrade desired bonus, visual difference, price difference, and call to action. And it doesn’t matter what product or service this is a workshop for instance it’s the same thing. Clear upgrade, desired bonus, visual difference, price difference go to action.
What we’ll start to see is how we’re going to implement these concepts, and you want to make a note on this because now we’re going to create a price grid, and you’re going to learn exactly how to create this grid, so what a price grid? A price grid is what you see in most websites, what you see in most offline forms. What you don’t see in a price grid is you don’t see a yes and yes. You don’t see a regular and you don’t see a premium. That’s what we’re going to create now. We’re going to take the concepts that the you’ve already learned, and we’re going to apply them right here.
The first checklist item is a clear upgrade. Can we see a clear upgrade? Absolutely, that’s the regular, and that ones the premium. So we can see a clear upgrade, that’s checklist number one. We look at the element number two, which is the desired bonus. Where is the desired bonus? Well they’re all over here, this whole section of the bonuses. But, the really desired bonuses are sitting right here. Which are three critics by Sean, which is worth fifteen hundred dollars and article start? So when you’re doing something like an article writing course, what you really want is a factor, how am I going to get someone to critic it? How am I going to get, you know how I’m going to start an article.
The difference is this, this bonus that you’re going to get. So, you almost want to start creating the most desired bonus at the start because that’s what people are buying when they’re the premium and people buy the premium─ you can see this density of you know tick marks here, and it’s important to have tick marks and not crosses or anything. Don’t try to be too creative here. And now let’s look at the visual difference.
You can start to see a visual difference here, between regular and premium. So almost instantly, I pick it up, and you know this one more I want the second option. This takes to the fourth, which is the price difference. Now you can start to see the price here. Fourteen ninety-five, sixteen ninety-five, which one would the customer take? You logic would tell you that they take the fourteen ninety-five.
That’s not how a customer behaves, that’s now how you and I behave. We look at sixteen ninety-five and we start to get the value. So we start to do all the adding up, we go─ okay were going to buy now which element number five. We’re going to buy we’re going to buy. But, what kind of value are we getting and we see in that step number four, this is fourteen ninety-five and this sixteen ninety-five but look at the value. For fourteen ninety-five I’m getting goods worth fourteen ninety-five. For sixteen ninety-five I get the added bonuses, when I add them all up, they come 3,495. Which one do you want? For 200 dollars, for a difference of 200 dollars, I’m getting a difference of eighteen hundred dollars. Which one do you want?
It’s a silly question isn’t it? Almost instantly, you want that option and that’s what most customers take. Very few customers will go for the regular; very few I mean really, really so few that it’s almost pathetic. The only reason you’ve got the regular and the premium is because you want to give a choice. So this moves on to the objection which is wait a second, I’ve got the yes and yes, but I’ve seen the yes, yes and yes. What is the yes, yes and yes? Well you have three options do you remember. Regular, basic, premium whatever you got three options that you see sometimes, and first it starts of with the really basic stuff, then the add on stuff and then the real goody stuff. So why not have three option, I mean you’ve seen three options everywhere.
There are three reasons why you shouldn’t. The first thing is that, what this three option is based on. It’s based on a factor of price. So if you get the best price for your product, then why would you want to an additional price because it creates more work. You have to put in a price for the first one, a price for the second one, a price for the third. And not only do you have to put a price for the first, second, and third one, if you’ve got just one product, it’s already a lot of work. Because you’ve got to create the whole shopping card and all the things behind that shopping card you have to, you know set-up the prices. Make sure they’re all right.
When you’ve got multiple products, you’re now creating a nightmare because now you got three options instead of two options for everything. So you’ve just increased your work by, I don’t fifty percent, just for nothing. You’re still getting the same price that you wanted, but you’ve increased your work by fifty percent. And the third thing is that, you’ve got this, products multiple products or services, well you going to increase your price at some of point in time so you have to increase the prices of all-them. One, two and three all over again, and again it’s a nightmare. So it’s really not worth having all the three option when two options can do the job and do it consistently well and in some cases even better than the three options.
Now the second objection is one of bonuses versus discounts. You know a lot of people give discounts, and discounts are a complete drain on the money. So, here you’ve got something and you go “Oh no, I won’t give you a bonus, I’ll give a discount.” What discounts do is they drain the profit. Instantly giving away money, so if you give away 25 percent discount, you’re actually giving away 25%of your profit. Bonuses don’t act that way, bonuses cost less in profit, so for instance, and this muffin may not cost you a lot of money. Might cost you very little money to produce, and discounts they start to cheapen the core product. You’re telling me that this is coffee is not worth the price that your charging, and customers learn that.
The third thing a customer is very concerned about or you as suppliers are very concerned about is will customers get wise to this? You know because, they’ll go “Hey this is a regular and this is a premium, well I’m going to take the regular.” That’s not how the human brain works. The human brain is looking at this bonus, and it requires to know what the value of that bonus and once it knows the value, it sees the difference between the two, and chooses the premium.
So, it doesn’t matter whether your customer know of the system that your using on a─they will still choose the premium provided you structure the price right.
So just to summarize, what we do, first we start out with the bonus. We saw that was critical to create the yes and yes. Then after that, we started to look at why the yes and yes factor works and this whole factor of value that we want more for less. And finally, we look at the price grid and the yes and yes factor. We started to look at those five elements that made the price grid so powerful. So what are we going to do from here?
Well I’ve done my bit, now its time for you to do your bit. Do one thing, what should you do today. The first thing you need to do is you need to make sure that you’ve got your checklist ready. So you’ve got those checklists, the five steps, and then you’re going to create a price grid. So, next in the series is very simple, five reasons why price risk go off course. Now I’ve shown you exactly what you need to do, you don’t─ you wouldn’t think that someone would go off course. Well they do, and there are five reasons why they go off course. We’re going to find out exactly how that works.
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Sean D’Souza signing off and see you in the next video.
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