Not sure where you stand? Discover the ONE main difference between premium offers and ultra-premium offers and how to price your unique services.
The Difference Between Premium and Ultra-Premium (And How to Price Your Service)
Entering the premium space may feel daunting for some. But when you know the right approach, there’s nothing to be afraid of.
A lot of you feel that you’re the best in your niche. And that’s why you’ve been meaning to level up and enter the premium space.
But there’s also the ultra-premium space to consider…
No matter which one you choose, know that you need to target the elite type of customers. But if you’re to do it successfully, the mainstream marketing approach won’t do the trick.
This means you can’t focus on the pain points with these people and try to fix that.
Instead, you need to understand their vision and expand on it through the transformation you create.
To bring these concepts closer to you, this article explores the difference between premium and ultra-premium and it gives you the tactics to set your pricing.
The Difference Between Premium and Ultra-Premium
For those of you who are very logical and want a definitive answer from me, I’m going to disappoint you.
There is no checkbox that I can give you.
There’s no quiz that I can give you that says, “Yes, you’re premium.” or “Yes, you’re ultra-premium.”
What I know is that the difference between the two really comes down to one thing…
Usually, if you’re starting a personal brand and you like the idea of the premium concept, it means you are probably starting at the premium end of the market. Then, you’ll be ascending to an ultra-premium model.
The best way for me to describe this is to set Tony Robbins as an example.
You would absolutely say Tony Robbins is an ultra-premium brand in the market. When he coaches, it’s a $1 million equity in the company.
Tony works with some of the most elite sportspeople and businesspeople around the world. And if he gets involved in your business at that private level, that is ultra-premium.
But that came with authority.
He had to start at the premium and has always been premium. But he’s definitely leveraged the premium offer and started at a very high level, working with some of the most extraordinary people on the planet to help them with their mindset and money.
To stress, Tony definitely started at the premium edge of the market, held his value, and then ascended into the ultra-premium once he had the authority to do it.
Not the question is…
Was there a moment when Tony knew he could move from one model to another?
I would say, probably no. It was more an intuitive thing.
Now, there are certain questions that could help you get a better idea of whether you’re ready to level up just like Tony did. And these are:
Where are you right now?
How are your offers going?
Are you ready for gating and higher offers?
Are you ready to stop being involved in everything that you’re doing and really move to an ultra-premium level?
That’s the conversation we need to have.
Frankly, you’ll probably know when you’re ready for that. As someone who’s run businesses before, you have this high acumen and understand the market. And you’ll intuitively know when it’s time to move to an ultra-premium model.
But what does it mean to be in the ultra-premium space?
It just means you’re going to elevate your clients further and charge more for your work. Or you may decide that you don’t work with people privately anymore.
For example, I would define our business as an ultra-premium business because we’re not paradigm-creating but paradigm-shifting. To be precise, we’re paradigm-shifting personal brands into luxury, premium, and ultra-premium spaces.
I’m definitely at the ultra-premium end of the market insofar as I can probably charge whatever I want at the highest end of the market. And I’ll still have people clamoring all over each other to work with me because I’m good at what I do.
I’ve got the most confidence in my ability to get an outcome. And that’s guided me off to the point that I literally can only work with a few people at a time.
When that happens to you, you’ll know that you’re in the ultra-premium.
Pricing Your Service
When it comes to premium brand pricing, there’s no exact modeling of how you do it. But the thing that I would absolutely push you to do is price yourself to the point it’s scary.
Imagine a check in front of you with the scariest amount possible written there. Then, I want you to design your package, your offer, and the highest level service based on that check.
This is how you’ll find the right price for your ideal clients and know where to cap it.
Let’s say you’ve never sold anything at $100K before. That’s a really good place to start.
Now, take that number and think about what you could do for your ideal clients with that amount. Find out what their deepest desires are and how you’re going to meet them there.
In other words, you’ll be looking for ways to provide service so outstanding that $100K might seem like a bargain for the transformation you’re offering.
But there’s a more important aspect of pricing your offer that I’d like to discuss here.
If you’re a logical person who has run companies before, it means you have high business acumen. So, my bet is that you’re probably going to go straight into…
“Okay, what is my ROI?”
But your questions won’t stop at that.
You’d want to know where to find your ideal clients, how much money to spend on marketing, and what to sell. And you’d want to understand the margins.
At this point, I don’t want you to worry about these because I’m going to do that with you.
I’m a practical person and not just one of those marketing people who are going to spend whatever and don’t worry about the ROI.
You know that I’ve founded and grown multi-million-dollar businesses. Therefore, I know exactly what it’s like in the early stages when you’re throwing seed money into a new concept.
I totally understand what that feels like…
But right now, I want you to get conceptual with me. I want you to go back and do all that conceptual work about your ideal client.
So what is this conceptual work all about?
It’s about getting incredibly honest with yourself. It comes down to looking deep down and getting honest about what you want.
After all, this is your legacy business, and I don’t have all the answers… But surely, I can point you in the right direction and help you craft an offer of your dreams.
Moving Towards the Ultra-Premium
Be it a premium or an ultra-premium business model, there’s one key element to grasp when you begin building your brand…
You really need to be incredibly honest with yourself.
Look really deep down and be honest about what you want. After all, you’re building your legacy business so you need to know your passions, core philosophies, and ideal clients.
That’s foundation work to building an ideal offer and getting it in the hands of the right people.
Knowing the foundation, it should be easier to come up with a crazy number and build an offer to match. That’s when you’ll be entering the ultra-premium space where the sky’s the limit.
Schedule your $100K Offer Appraisal Call so we can go through the process together.