Why it’s important to charge PowerCore Members full price, and how to violate that rule.

The purpose of PowerCore is not to do business with each other – if it was, you’d just attend once, collect everyone’s card, and follow through. When people do that they might get a bit of business, but they don’t get any where near the value the Team has for them.

PowerCore’s purpose is for Members to get to know you closely – close contact – close enough to consider you are a friend and introduce you to their clients.  It sounds like this: “I know exactly who you need, you need my friend Valerie. I’m having coffee with her Wednesday morning, I’ll have her call you.”  PowerCore’s purpose is Members’ referrals >to their customers >who are your potential best clients.

Check out a We Did Business slip:
We Did Business slips

Members who do business with you are most likely to be coded On Base; least likely to be Home Run or Grand Slam. Our purpose, at 7am, is not to sell to each other.

But, Members will want to do business with you.
They see you every week!
They know you better than they know anyone else in your industry.
And your InfoMinutes and 7-Minute Presentations make them eager.

If, when they choose you, you give them a discount . . .
what will they say when their client asks “So what does it cost?”
They’ll share the price they paid, of course.
OH NO!
Now their client is expecting the discount price too.
And when the price is higher . . . Ouch.

You can not afford to let Team Members think your discounted price is your usual price.

Here are two tools to fix that problem:

1: Talk price in every InfoMinute. Every one. Either give a price with the Blue Card (the new, valuable, usable information for the left brain) or include it in the Red Card (the client example story for the right brain). When you include price in every InfoMinute two things happen, both of them good:

1A: When Members use you they know what your rate is, and expect to pay it.

1B: When Members refer to you they know and share your usual rate.

2: Show the usual rate on every invoice. If you have a really good reason for giving a Team Member a discount (I can’t imagine what it is, but you may have one.) always show the real price first, then show the discount amount – with a valid* reason – and then the amount due:

Project __ Rate __ Due
Layout and design, 10 hours $150/hour $1,500.00
PowerCore Member discount*  15%     -225.00
Balance due: $1,275.00

Now they know what to quote when they refer to you, and they know the value of your gift to them.

But wait – there’s an *.  Why are you giving a PowerCore Member discount?
(Are you catching that I don’t consider that a *valid reason?)

Is it because your prices are inflated?
_____>Then why should their clients pay your full price?
Is it because you’re not worth your stated rate?
_____>Then how can they, in good conscience, refer you to their clients?
Is it because you never charge anyone full price?
_____>What else shouldn’t they trust?

Here’s the wrap:
1: Members do business with you because they like you and need you, not “for the deal.”
2: Members have to know your price in order to refer to you profitably.
therefore
3: you must charge Members full price.

 

Want to argue?  Comment? Question?
Join in below and step up referrals,  W!

 

 

5 Responses to Why it’s important to charge PowerCore Members full price, and how to violate that rule.
  1. Kashima Peters
    January 5, 2017 | 12:56 pm

    This is on the Money!!
    Thanks

  2. Marianne Gudina
    January 5, 2017 | 12:58 pm

    HI Wendy,
    You are so correct. When I was in a different organization they had a policy of members receiving 10% and when I asked why they had no answer. At that time I had the financial seat and I said that I cannot do that. The answer was to send them a gift.

    Now you know why I am not there any longer.

    I have used LaToya. Found out that my husband needed part D and he has never had it. She gave us a wonderful breakdown of his penalties so I went with her.

    Marianne

  3. Diane Campbell
    January 5, 2017 | 12:59 pm

    True dat.

    Diane

  4. Valerie Beeson Lyles
    January 5, 2017 | 2:35 pm

    Wendy, After taking the time to read and digest your article it now makes perfect sense why you should charge a PowerCore member the full price or fee. I know personally I have struggled with this issue inside and out of PowerCore. Thinking it was just expected. Not to speak for others but I believe when you are independent it is harder to stay strong on this issue verses someone who works for a company. This will give me the backbone to charge the correct price for the services given. Thank you Wendy for explaining this issue so clearly. Val Lyles

  5. Venis Sims
    January 6, 2017 | 12:32 pm

    WOW!! I have given two power discounts in my tenure. However, they were both to the end client. The referral was from a table member to a friend of theirs. I gave the friend a 15% discount.

    The other time was to a past table member.

    Now that I think about it (and because of your email) I could have easily not given the discount.

    Consider me having been “taken to school”

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