Page 174 - The $100 Startup_ Reinvent the Way You Make a Living, Do What You Love

broad range of products at different prices told me. “We have far more
complaints from people who pay $10 and expect the world than from those who
pay $1,000.” I’ve noticed a similar effect in my own business, with people
buying the lower-priced version of something generating a much higher rate of
customer service issues than those who buy the higher-priced version.

The key lesson in all these ideas is to always be experimenting. Try new
things and see what happens.

Product to Service, Service to Product

Another easy thing many existing businesses can do to add a new revenue source
quickly is to create a service from a product-based business or create a product
from a service-based business. Remember the story about the restaurant in
Chapter 2? Most people go to a restaurant so they can relax and let the staff
serve them. But others really are interested in how the cooking works, so
restaurants sometimes offer cooking classes to show off their favorite recipes
and create more loyalty among frequent diners. The key is that the lessons are
held on Saturday or Sunday afternoons, times when the restaurant is closed or
not very busy. Saturday night is reserved for the main event of regular dining.

If you have a product business, ask yourself this question: “My product is
x … how can I teach customers about y?” Then create a new version of your
offering that includes consulting, coaching, a “jump-start” session, premium
technical support, or something else. Make it clear that customers don’t need the
service; they can get by on their own with just the product. But for those who are
interested in some extra hand-holding, the service is available and waiting for
them.

Perry Marshall, a Chicago-based business consultant, made the switch from
product to service by offering an educational course based on knowledge he
usually shared through a one-time product. Perry had written a popular report
that sold multiple copies every day for $50 each. He was also busy offering one-
on-one personal consulting, but one day someone gave him an idea: “Everyone
who buys this report loves it, but they don’t always know how to implement
what you teach. They also don’t need your high-end one-on-one consulting, so
why not offer a series of jump-start workshops that people could take as a
group?” Perry wasn’t sure at first but decided to give it a try. When the idea
generated more than a million dollars for his small firm, he was astounded.