How would you set up a funnel for a $7k+ product?

[The Composer]

Howdy folks,

My partner and I operate in the health and wellness niche. We have an established brick and mortar that offers a variety of services, and we're looking to expand to online sales. We have entered into an agreement to act as distributor for one of our equipment vendors with a healthy profit split. The units range in price from $7k on up to $20k.

How would you go about bootstrapping sales? This will be the first eCommerce product for the brand, and I admit that Im scratching my head on how best to structure this. Would you run ads to get sales calls? Try to close the sale right off the ad? Build a webinar? This is new territory for us, but my gut tells me that such a high-ticket product will involve a different strategy.

Thank you.

 

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[Keith15203]

Howdy folks,

My partner and I operate in the health and wellness niche. We have an established brick and mortar that offers a variety of services, and we're looking to expand to online sales. We have entered into an agreement to act as distributor for one of our equipment vendors with a healthy profit split. The units range in price from $7k on up to $20k.

How would you go about bootstrapping sales? This will be the first eCommerce product for the brand, and I admit that Im scratching my head on how best to structure this. Would you run ads to get sales calls? Try to close the sale right off the ad? Build a webinar? This is new territory for us, but my gut tells me that such a high-ticket product will involve a different strategy.

Thank you.

Typically a high-ticket product like that is going to be closed on the phone or in person. A funnel would be designed with the goal of getting people to book calls or meetings, not to sell the product. I wouldn't really think of it as eComm at that price point, because to sell things of that price you have to build rapport and actively close them, not just get them to click a button.

If it were me, I'd first think about my audience and what their problems/needs are, how I/the product can solve them, and what message resonates with them. The audience size, composition, and habits will have to dictate the traffic strategy (paid vs free) and the funnel design. But if you want a funnel for those high-ticket products specifically, the funnel would terminate in some kind of call booking like a Calendly Page.

Have you thought about trying to build funnels and run traffic to increase foot traffic in your store instead of to sell the high-ticket item? I'd think a better strategy would be to either try to get people to your physical location or to start online marketing with lower price-point items as a way to attract people, build know/like/trust, and build a relationship. Then the high-ticket item is an up-sell or future purchase, not the first event in the relationship.

 

[Two Dog]

Howdy folks,

My partner and I operate in the health and wellness niche. We have an established brick and mortar that offers a variety of services, and we're looking to expand to online sales. We have entered into an agreement to act as distributor for one of our equipment vendors with a healthy profit split. The units range in price from $7k on up to $20k.

How would you go about bootstrapping sales? This will be the first eCommerce product for the brand, and I admit that Im scratching my head on how best to structure this. Would you run ads to get sales calls? Try to close the sale right off the ad? Build a webinar? This is new territory for us, but my gut tells me that such a high-ticket product will involve a different strategy.

Thank you.

Not enough info. $7K - $20K is impossible for a touch free consumer sale.

Let's hope the distributor has actually been selling these things and not expecting you to break trail.

With that in mind, what sales strategy have they been using? Why can't you copy their sales process?

 

[Two Dog]

Some thoughts for you...

The price point is *extremely* high for a consumer health and fitness item. I don't think anything is impossible to sell, but the audience in that range will be paper thin. The obvious problem is anyone can join a gym for $50 - $100 monthly and have access to a tremendous range of equipment and facilities. That's years of membership months vs. buying your equipment.

The only things that come to mind in a similar price range are Bowflex, endless swimming pools and that ludicrous "Four Minute Exercise" contraption advertised in airline magazines. Peloton bike are only $2K. All of which makes me think the equipment would be better targeted toward businesses that can cost justify the purchase. Places like physical therapy providers, private training fitness studios, rehabilitation centers for the elderly, apartment complexes, professional sports gym, university sports gyms and so on. Not direct to consumers.

Think of something like a hyperbaric chamber or floatation tank. How many consumers will ever own one of those?

Assuming the analogy to Bowflex, endless pools and the four minute contraption is accurate, all of them have taken the same approach to promoting the product to consumers. It took years of national advertising in multiple channels designed to both educate the market and gain trust. Big glossy prominent ads in well known magazines. High production value infomercials. Stuff like that. You would be taking the same approach which requires a hefty marketing budget, patience and experience.

Maybe someone else will have a different perspective.

 

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[MitchC]

There’s a my first million episode where he talks about buying a sauna online.

They had a phone sales type thing if you didn’t just straight up want to buy on the site.

The sales lady was great and he asked her some questions.

Basically she worked from home on commission and there was a few of them doing it.

I’d be looking into that model.

I don’t know the episode or the sauna company but I’m sure you could find it.

 

[Andy Black]

How would you setup a funnel for a $7k product?

vs

How would you sell a $7k product?


What if it didn’t need a funnel?

Anyway, my advice would be to find out how businesses sell similar priced products, ideally products similar to the one you’re trying to sell.

 

[The-J]

I don't know how much this will help, but I worked with a client through an agency a few years back that was selling a $3k coaching suite. He sold only to personal trainers.

The funnel was stupid simple. FB Ad (the best performers were the client himself explaining the personal trainer's situation and offering a solution) -> landing page video (like 15 minutes or something) -> Jotform -> phone call

The KPIs were:

• How much does it cost to get someone to the LP
• How much does it cost to get a Jotform submission
• Phone conversion rate (they were pretty dialed in here)

Each step existed to disqualify people who weren't a good fit, because phone time is very valuable to the company. Every minute spent on the phone with a bad lead is a minute that could be spent with a good one.

I don't know what they did on the email backend, or what they said on the phone call (all I did was run ads) but on the ads backend they did a ton of retargeting (like 20% of the budget, which drove a majority of the ROAS, content was testimonials)

The reason they did Facebook ads was because that's where their customers (personal trainers) were. Where are your customers? Your choice of channel = where your customers are. If your customers are searching for what you offer, use Google. If your customers aren't, but are spending a lot of time on social media, then choose whatever social media they spend the most time on.

For what it's worth, I've noticed that the higher priced the product, the more likely they'll want to talk to a human being.

 

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[The Composer]

Typically a high-ticket product like that is going to be closed on the phone or in person. A funnel would be designed with the goal of getting people to book calls or meetings, not to sell the product. I wouldn't really think of it as eComm at that price point, because to sell things of that price you have to build rapport and actively close them, not just get them to click a button.

If it were me, I'd first think about my audience and what their problems/needs are, how I/the product can solve them, and what message resonates with them. The audience size, composition, and habits will have to dictate the traffic strategy (paid vs free) and the funnel design. But if you want a funnel for those high-ticket products specifically, the funnel would terminate in some kind of call booking like a Calendly Page.

Have you thought about trying to build funnels and run traffic to increase foot traffic in your store instead of to sell the high-ticket item? I'd think a better strategy would be to either try to get people to your physical location or to start online marketing with lower price-point items as a way to attract people, build know/like/trust, and build a relationship. Then the high-ticket item is an up-sell or future purchase, not the first event in the relationship.

Thanks for chiming in Keith. My gut is right in-line with everything you're saying - that no one is looking to drop that kind of money after getting hit with an online ad or two.

For more context, this product is a luxury wellness item that customers of the brick-and-mortar store schedule time to use. Think like a sauna or hyperbaric chamber. So that leads me to the conclusion that our customers are well-off individuals who are willing to drop a lot of money for ease-of-access and convenience to the service: no scheduling, no driving into our physical location, just having the equipment set up at home ready to go whenever they want.

A good chunk of the value that my partner and I provide is on the side of information, education, and support. We know the science backing all of the benefits provided by the equipment, and how best to operate and maintain the equipment. This aligns with what you're saying on building know/like/trust. We operate in an area with a lot of wealthy sloshing around, so really our thought here is to see if we can capture some of the small number of people that have lots of money and are wanting to dive deep by getting their own equipment. To your point, perhaps the way to do that is to target those individuals and get them in the front door to start building that relationship.

 

[The Composer]

Some thoughts for you...

The price point is *extremely* high for a consumer health and fitness item. I don't think anything is impossible to sell, but the audience in that range will be paper thin. The obvious problem is anyone can join a gym for $50 - $100 monthly and have access to a tremendous range of equipment and facilities. That's years of membership months vs. buying your equipment.

The only things that come to mind in a similar price range are Bowflex, endless swimming pools and that ludicrous "Four Minute Exercise" contraption advertised in airline magazines. Peloton bike are only $2K. All of which makes me think the equipment would be better targeted toward businesses that can cost justify the purchase. Places like physical therapy providers, private training fitness studios, rehabilitation centers for the elderly, apartment complexes, professional sports gym, university sports gyms and so on. Not direct to consumers.

Think of something like a hyperbaric chamber or floatation tank. How many consumers will ever own one of those?

Assuming the analogy to Bowflex, endless pools and the four minute contraption is accurate, all of them have taken the same approach to promoting the product to consumers. It took years of national advertising in multiple channels designed to both educate the market and gain trust. Big glossy prominent ads in well known magazines. High production value infomercials. Stuff like that. You would be taking the same approach which requires a hefty marketing budget, patience and experience.

Maybe someone else will have a different perspective.

Thanks Chris.

Funnily enough, this equipment is VERY much like a hyperbaric chamber or flotation tank. Agreed that not many consumers will ever own one, but we're thinking that in the wealthy, uber-health-conscious area where we operate, there's a good chance there are some folks who would love to. You bring up an interesting direction on marketing to other businesses - perhaps there's an angle here to pitch this equipment as a new revenue generator to other businesses operating in our space. The economic viability has certainly been proven out in our brick-and-mortar; these things drive a lot of lucrative appointments.

 

[The Composer]

There’s a my first million episode where he talks about buying a sauna online.

They had a phone sales type thing if you didn’t just straight up want to buy on the site.

The sales lady was great and he asked her some questions.

Basically she worked from home on commission and there was a few of them doing it.

I’d be looking into that model.

I don’t know the episode or the sauna company but I’m sure you could find it.

Thanks for the pointer Mitch - looks like this one:
https://www.mfmpod.com/190-making-b...confidence-and-the-future-of-sports-recovery/
I'll be checking it out.

 

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[The Composer]

How would you setup a funnel for a $7k product?

vs

How would you sell a $7k product?


What if it didn’t need a funnel?

Anyway, my advice would be to find out how businesses sell similar priced products, ideally products similar to the one you’re trying to sell.

Thanks for the perspective shift Andy. I was taking the term "funnel" as very broadly construed, but you're right that a standard "funnel" may not be the tool for the job. Speaking of, we've just had a sale that came from rapport and relationship building, all genuine and no "trying to sell".

 

[The Composer]

I don't know how much this will help, but I worked with a client through an agency a few years back that was selling a $3k coaching suite. He sold only to personal trainers.

The funnel was stupid simple. FB Ad (the best performers were the client himself explaining the personal trainer's situation and offering a solution) -> landing page video (like 15 minutes or something) -> Jotform -> phone call

The KPIs were:

• How much does it cost to get someone to the LP
• How much does it cost to get a Jotform submission
• Phone conversion rate (they were pretty dialed in here)

Each step existed to disqualify people who weren't a good fit, because phone time is very valuable to the company. Every minute spent on the phone with a bad lead is a minute that could be spent with a good one.

I don't know what they did on the email backend, or what they said on the phone call (all I did was run ads) but on the ads backend they did a ton of retargeting (like 20% of the budget, which drove a majority of the ROAS, content was testimonials)

The reason they did Facebook ads was because that's where their customers (personal trainers) were. Where are your customers? Your choice of channel = where your customers are. If your customers are searching for what you offer, use Google. If your customers aren't, but are spending a lot of time on social media, then choose whatever social media they spend the most time on.

For what it's worth, I've noticed that the higher priced the product, the more likely they'll want to talk to a human being.

Much appreciated. Our target client is a wealthy individual who is willing to pay a lot for ease-of-access and convenience to the therapy provided by the equipment. Where does that person spend a lot of time? Good question - the first place that comes to mind is on the golf course LOL. Maybe we should be putting out flyers there instead of looking into online ads.

 

[Andy Black]

Much appreciated. Our target client is a wealthy individual who is willing to pay a lot for ease-of-access and convenience to the therapy provided by the equipment. Where does that person spend a lot of time? Good question - the first place that comes to mind is on the golf course LOL. Maybe we should be putting out flyers there instead of looking into online ads.

“Who already has your clients?”
- Jay Abraham

 

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[Two Dog]

For more context, this product is a luxury wellness item that customers of the brick-and-mortar store schedule time to use. Think like a sauna or hyperbaric chamber. So that leads me to the conclusion that our customers are well-off individuals who are willing to drop a lot of money for ease-of-access and convenience to the service: no scheduling, no driving into our physical location, just having the equipment set up at home ready to go whenever they want.

Pro athletes? Semi-pro?

Now that sounds like an excellent target market if there's a performance improvement angle aka USP. Wealthy, performance driven, virtually price insensitive. Huge word of mouth. Huge social media exposure. Just picture selling those stupid NFL nose strips for $10K each. ;-)

p.s. Are you intentionally hiding the product for some reason? It sounds like you're talking around it.

 

[FastNAwesome]

I think there are lots of folks for whom that price is no big deal - if they're sold on the benefits.
(Or want to keep up with Joneses

Back when I was in college, a piece of fitness equipment was popular here and at the time it cost around $10k.
Also, where I live, that was a lot of money. Almost an annual average salary.

Still, it sold well. Customers were e.g.celebrities, entrepreneurs, who wanted convenience of exercising in their own home,
and didn't mind the price. With this product, you could get a personal coach too, to guide your workouts.

I knew one of these coaches, so that's how I know.
He also told me about routines of some very successful folks, which included other things too, like swimming, boxing, weight lifting - all at home of course.

Maybe your product would be a nice addition for such home gyms?
Could personal fitness coaches be your affiliates?

Also could wellness/spa places be your customers? Or some more luxurious gyms?

Part of the pitch could be that your product may attract more customers to them?
E.g.their competitors have a pool, a sauna, a this or that.
And their place has all that too + your product

 

[MitchC]

“Who already has your clients?”
- Jay Abraham

I was thinking the same after reading the other replies. Just hit the lists of people who have bought saunas and float tanks, some sort of referral or affiliate deal

 

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