This video talks about a clever way to cut down expenses and make more money, especially when setting things up for clients. Instead of charging a monthly fee that includes a big chunk for the company, the approach is to charge a one-time setup cost. This way, customers pay less over time, and the company still makes money by providing the complete setup service. It's a win-win that focuses on customer savings and a different revenue stream for the service provider.

Key Takeaways

• Focus on a one-time setup fee instead of monthly margins.

• This lowers the overall cost for the customer.

• The company makes money by providing the setup service itself.

Rethinking Pricing Models

Most businesses operate by taking a cut from every transaction or monthly payment. This is how they make their profit. But what if there was another way? This strategy suggests stepping away from that usual margin. Instead of building profit into the ongoing monthly price, the focus shifts to the initial setup.

The Setup Cost Advantage

The idea is to charge customers for the setup process itself. This means the monthly price can be lower. Customers benefit because their regular expenses go down. The company, in turn, makes its money by offering this setup service. It’s a way to give customers a break on recurring costs while still getting paid for the work involved in getting them started.

Why This Works for Customers

Think about it from the customer's point of view. They pay a bit more upfront for the setup, but then their monthly bills are significantly less. Over time, this adds up to real savings. It makes the service more affordable and accessible, especially for those who are watching their budget closely. It’s a more direct way to show customers the value they are getting right from the start.

How It Benefits the Provider

For the business providing the service, this model changes how they earn. They aren't relying on a small percentage of every future payment. Instead, they are compensated for the work and resources that go into the initial setup. This can create a more predictable revenue stream based on new client onboarding. Plus, it can be a strong selling point to attract new customers looking for cost-effective solutions.

Implementing the Strategy

To make this work, a business needs to clearly define its setup process and costs. Transparency is key. Customers need to understand what they are paying for with the setup fee and how it leads to lower monthly expenses. It requires a shift in how sales and marketing talk about pricing, emphasizing the long-term savings for the client.

Ready to see how a similar strategic approach could boost your sales revenue? Let's explore how AI can transform your specific sales process. Book a strategic discovery call with us today: https://cal.com/kevin-oliveira/ai