What price point should I pitch these leads?

5 replies
Hi all,

I hope you're well.

Question.

I'm selling chatbots as an entry level product to then sell other things to local businesses.

On average, I've found a chatbot can generate around 10 queries a month for the businesses I'm building these for (they're templated chatbots that don't require much customisation for them).

I'm working with local service-based industries right now.

Question, for the US market, let's say the 'cleaning service' market (companies that clean properties/businesses/etc), how much would you charge per query/complete conversation (I.e., only those that leave all their details)?

I've been charging £3.00 per query in the UK.

There are no other costs for these businesses.

Any other tips?

Thanks again.

Scott
#chatbots #lead generation #leads #pitch #point #price
  • Profile picture of the author Jason Kanigan
    I would offer this as a monthly subscription service, rather than a per lead model. There is too much out of your control with the per lead approach. You're providing infrastructure and templated content, but you can't control traffic volume. That's up to them and a good qualifier for you as to whether someone will be a good client or not.

    Get the prospect to figure out how much it's worth to them. How many inquiries do they conservatively believe they could get a month, based on the traffic they now have? And what's the average order value? How many inquiries do they think it'd take to get an order? With these factors you know the value of your service, and they came up with the numbers so they won't argue. 5% of the value is an easy amount for people to say "Yes" to.

    Eg. 1000 visitors/month, 5% fill out the chatbot info = 50 inquiries. 5 inquiries to make a sale = 10 sales. Average order value = $800 = 10 X 800 = $8000 total monthly value of your service. 5% of that is a price point of $400. If you think that's "expensive" then $200/month is a no-brainer price, isn't it.

    I shared how to do this kind of filtering and value-building a long time ago.
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    • Profile picture of the author Scott Stevens
      Thanks, Jason. I'll go and check that other post also.

      Originally Posted by Jason Kanigan View Post

      I would offer this as a monthly subscription service, rather than a per lead model. There is too much out of your control with the per lead approach. You're providing infrastructure and templated content, but you can't control traffic volue. That's up to them and a good qualifier for you as to whether someone will be a good client or not.

      Get the prospect to figure out how much it's worth to them. How many inquiries do they conservatively believe they could get a month, based on the traffic they now have? And what's the average order value? How many inquiries do they think it'd take to get an order? With these factors you know the value of your service, and they came up with the numbers so they won't argue. 5% of the value is an easy amount for people to say "Yes" to.

      Eg. 1000 visitors/month, 5% fill out the chatbot info = 50 inquiries. 5 inquiries to make a sale = 10 sales. Average order value = $800 = 10 X 800 = $8000 total monthly value of your service. 5% of that is a price point of $400. If you think that's "expensive" then $200/month is a no-brainer price, isn't it.

      I shared how to do this kind of filtering and value-building a long time ago.
      Signature

      Yours in prosperity,
      Skochy - The Musical Salesman

      {{ DiscussionBoard.errors[11710937].message }}
    • Profile picture of the author Scott Stevens
      Just one more thing (said Columbo), Jason.

      Do weekly subscriptions generally work well? Where people get billed weekly as opposed to monthly?

      Or bi-weekly?

      Thank you.

      Originally Posted by Jason Kanigan View Post

      I would offer this as a monthly subscription service, rather than a per lead model. There is too much out of your control with the per lead approach. You're providing infrastructure and templated content, but you can't control traffic volume. That's up to them and a good qualifier for you as to whether someone will be a good client or not.

      Get the prospect to figure out how much it's worth to them. How many inquiries do they conservatively believe they could get a month, based on the traffic they now have? And what's the average order value? How many inquiries do they think it'd take to get an order? With these factors you know the value of your service, and they came up with the numbers so they won't argue. 5% of the value is an easy amount for people to say "Yes" to.

      Eg. 1000 visitors/month, 5% fill out the chatbot info = 50 inquiries. 5 inquiries to make a sale = 10 sales. Average order value = $800 = 10 X 800 = $8000 total monthly value of your service. 5% of that is a price point of $400. If you think that's "expensive" then $200/month is a no-brainer price, isn't it.

      I shared how to do this kind of filtering and value-building a long time ago.
      Signature

      Yours in prosperity,
      Skochy - The Musical Salesman

      {{ DiscussionBoard.errors[11710964].message }}
      • Profile picture of the author Jason Kanigan
        Originally Posted by Scott Stevens View Post

        Just one more thing (said Columbo), Jason.

        Do weekly subscriptions generally work well? Where people get billed weekly as opposed to monthly?

        Or bi-weekly?

        Thank you.
        Well let me ask you this:

        Why would you want your buyer to revisit and make a purchasing decision every week, 52 times a year, instead of every month, 12 times a year?

        Consider the impact of this.
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        • Profile picture of the author Scott Stevens
          Well, it's auto-bill subscription, after they've paid the first time round. But thinking about, I guess your logic still stands, since their transaction with me would show up on their statement 4-5 times a month, as opposed to once a month with a monthly subscription.

          Cheers again, Jason.

          Originally Posted by Jason Kanigan View Post

          Well let me ask you this:

          Why would you want your buyer to revisit and make a purchasing decision every week, 52 times a year, instead of every month, 12 times a year?

          Consider the impact of this.
          Signature

          Yours in prosperity,
          Skochy - The Musical Salesman

          {{ DiscussionBoard.errors[11711030].message }}

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