July 28, 2025
PipemanRadio & Michael Barbarita Discuss The Five components of a compelling offer
Dean K. Piper, CST and Michael Barbarita of Next Step CFO discuss one of the reasons why people are not making sales is their offers are weak. We will discuss the 5 components of what makes an offer compelling!
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Hi, you love done too?
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That's sure? Wow, great you young. This is the pipe
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Man here on the Adventures of pipe Man W four
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c Y Radio. And it's another positively pipe man. And
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again we're gonna have our resident expert on business coming
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on the show and talking with us, or is here
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with us on the show. And so i'd like to
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welcome Michael Barbarita.
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How are you?
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Thank you? Dan hope you will today.
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I'm well.
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And you know what, every time I say your name,
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it's everything in my power in my brain not to
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say Barbarino.
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I know that shows age.
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I would get that joke, but it is here like
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when I was just saying it, like it was about
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to come out of my mouth and my mind.
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I had to change it. Uh. I won't be the
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last personally. There you go.
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At least you're not worshack. Okay, uh so okay. This
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time we're talking about the five components of a compelling offer.
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And I love this segment the best because I'm all
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about compelling offers when it comes to business sales, and like,
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to me, it's all about finding out what see to me,
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sales is not people have it the wrong way.
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Sales is not selling something that somebody wouldn't buy. It's
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convincing somebody to buy. It's not selling them.
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It's convincing them to buy something they already were going
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to buy, but they're buying it from you. And in
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order to convince them, there has to be a compelling
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offer that's going to make you stand above the competition
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or even above any of their objections. So while you
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tell us what your strategies and your five components are
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for a compelling offer.
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Be happy to do that.
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Dan, thank you, thanks again for having me. So if
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you recall from the convergent formula, captivate the problem, fascinate
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the solution, educate where we elaborate on why that solution
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is far superior to the competition.
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And then finally, the offer.
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And as I said in a previous segment, that the
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offer has to be so compelling and so irresistible that
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the customer can't say no. They feel foolish if they
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were to say no. And so there are five components
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of a compelling offer through our research to our studying.
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Now maybe there's more, but through our to our research,
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we've narrowed it down to five.
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And by the way, you don't have to do just
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one at a time.
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I've seen the most effective offers combine at least one,
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but one or more of these of these components. So
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the first one is urgency and scarcity. So urgency, right,
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this offer ends on Friday. Scarcity, there's only three left.
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Or if you're in my business, for example, this is
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an example. I only have so much bandwidth, I only
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have three spots on my calendar. Whatever the scarcity is,
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whether it's actual quantity of product or time, whatever, the
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scarcity is urgency and scarcity, and I combine those as
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one component. So the second one is risk reversal. Now,
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if you recall from my story in the ski business,
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we had a ski guaranteed skive the ski three times
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you don't like it, bring it back for a brand
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new pair, and keep bringing it back until we get
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it right. And that is a risk reversal. And the
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risk reversal is where the seller and the transaction takes
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most all the risk and very few times there's a
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risk reversal backfire, like almost never. But yet many business
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owners are scared to use it.
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They totally are. Yeh, they totally are. And I'm here
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to tell you as a motivational speaker. As the number
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one thing that's used when selling your program or your
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audio program or your video program. It's the thirty day guarantee.
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And ninety nine percent of the time, nobody is ever
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not satisfied at that thirty day.
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Mark, right, and especially if you believe in your product. Yeah, right, exactly, absolutely.
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Yeah, So that has been That is a great way
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to make it off of compelling. So think about it.
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If you combine should see in scarcity with a risk reversal,
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that doubles up on the power of the offer. The
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third one is adding more value to your product or service.
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So let me tell you what I did when I
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was in the frozen cookie dough business. So the problem
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the customer had in the frozen cookie dough business is
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they didn't want to waste valuable oven space baking cookies. Okay,
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So what we did, and there's a couple of things
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dynamics here. Number one, we understood the long term value
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of a customer, which is extremely important for every business
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owner to know what is the long term value of
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a customer. So we understood the long term value of
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the customer. Just so you know, it was five thousand dollars.
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So when we sold cookie, when we had a customer
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in the cookie dough business, we can't expect at least
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five thousand dollars of sales over the term three to
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five year term, which we considered was the lifetime. It
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was longer than that most cases, but we had to
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use a criteria. So what we did is and by
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the way, the average opening order was fifty dollars. And
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what we did is we gave away a free convection
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of it, which cost us two hundred dollars m with
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the with the with an opening order that average fifty dollars.
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So we obviously lost money for a couple of orders,
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but we had confidence in our product.
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That's very important.
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We believed in our product and we understood the long
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term value of a customer and it worked famously. It
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solved their problem and by the way, they got to
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bake other stuff in it two okay, but it solved
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their problem and we got orders because we added more value.
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We weren't just cookie dough, okay. We added more value
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to a cookie dough purchase.
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And people like they eat that stuff up. You know that,
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even somebody like myself who knows what these marketing things are.
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It's still it adds value, so it's not like it's
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not like a trick or something. It just it makes
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you want to buy the product. And you know, going
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back to something you said, it reminds me of this industry.
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So before I ever had a network, I used to
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pay to have a RAO show on other radio stations.
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And one of the things I found with all my
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competitors is they all do a thirteen week contract that
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they all have a revolving door of business, and they're
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always after fresh blood. And you know, because they would
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charge as much as they possibly could in the very
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beginning to get the most money right up front. And
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to me, first thing I think they're alluding to what
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you were saying before, is they don't have confidence in
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their product or their service or else they wouldn't need
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to charge the most amount they ever charge in the beginning.
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They would charge the least amount in the beginning and
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charge the most later once they gained that client to
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be like a forever client. The second thing that I
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found is that you know, I'll tend to say to
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people and I joke about it. It's like a joke,
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but I'll say I'll make you a deal you can't refuse,
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and that goes along with what you're saying, even though
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I'm joking. Basically, what I'm saying is, Hey, I want
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to find out what your needs are, what your problems are,
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what the solutions are, and your budget, and I'm going
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to try and make you a deal that's so compelling
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that you're not going to want to refuse it because
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it fits every criteria that you need. And so I'm
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living proof that everything you're saying is absolutely one hundred
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effective in stick.
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So yeah, you know, and that that fourth component is
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what I call packaging and bundling. Now, let me give
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you a quick example of that. So when I was
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in oh, by the way to the adding more value,
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I just want to give one other example. So if
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you if you if you sell popcorn and you put
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it in a box, and you sell it for two dollars,
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and then you instead of putting it in a box,
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you put it in a vase. Okay, you can still
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sell it for like seven the veins by the cost
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extra two dollars, but now you can sell that product
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for eight or nine dollars.
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Because they can reuse it.
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So that's adding more value without really adding and and
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get and also adding more profit botching.
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Yeah yeah, you know.
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So, So that's just another example. So it's not just
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a giveaway thing and understanding the long term valuable customer.
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You also can just to add more value by being
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creative with how you package.
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Listen, Flores do it all the time, don't they.
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Flores have the package deals where you get the stuffed animal,
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the vase and everything, and people spend a lot more
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money for that, They make a lot more money and
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everybody's happy.
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Terrific example, that's right, yep.
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And so the the component of a compelling offers packaging
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and bundling.
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And let me explain.
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When I was in the ski basin, everybody, everybody, I
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mean everybody package skis, bindings and polls. Okay, fine, but
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what we also did is we took the best, uh
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the most, the highest selling ski graphics, so the skis
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with the graphics that sold the most, and we went
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to the clothing department and put together clothing packages a hat,
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a sweater, parker and pan bib.
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For one price and they and they sold famously.
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And so it's that perception of value when you package
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and bundle together, and you're also my competition.
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I don't know why they didn't even copy it. They never,
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they never.
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It was working great and they never copied it, which
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is another interesting thing.
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People.
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I'm a big believer in the packaging by the way
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people buy packages. And a perfect example too, it's McDonald's.
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Did you ever do the math on a value meal?
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You know, if you bought the value meal everything separately,
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it would cost you a penny less than buying the
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actual value meal.
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Right, it's unbelievable, right, yeah, because it's the perception of
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value value meil Well, how.
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Can it not be a value exactly? And nobody calculates it.
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They just buy them.
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Like I can't tell you how many people I know
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that don't even drink a soda or eat fries and
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they'll still get the value meal because they think they're
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getting a deal.
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Right. That's an excellent point. Excellent point.
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And then the file component of a compelling offer is
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the toughest one. It's in difference to the outcome, not
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being connected to the outcome. Many times, many times, too
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many times salespeople are connected to the outcome. And what
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happens is when they're too connected to the outcome, the
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prospect can tell that they're not in it for them
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they're in it for themselves.
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And there's ways to do it. You know.
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One of the ways that I do it is that
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you know, whether you work with me or someone else,
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there are five steps that you must take in order
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to properly implement business and financial strategies that your competition
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isn't doing. And then I would go through those five steps,
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and then I would recap it once again, whether you
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work with me or someone else. And so that's just
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one part of the difference. There's other parts where some
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people would say, you know, I don't want to get
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in the way of you succeeding. So if for any
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reason there's a lack of trust, or if for whatever
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reason you don't want to work with me, I'd be
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happy to refer to somebody else. So there's a bunch
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of different ways. Because everything is transactional. Dem Yeah, we
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have to make it transformational, Okay. So if we're in
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different to the outcome and we identify the problem that
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the customer has, that's transformational. If we're not indifferent to
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the outcome and we don't connect it with a solution,
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we're just We're just a transactional sales weasel.
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Yeah, no doubt.
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And that's why you know, and a lot of salespeople
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that you're talking about that are doing the transformational and
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they do this strategy without even trying to do it.
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That's why the takeaway is the best sales tool there is,
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because that's it. Yeahs And most salespeople refuse to do
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the takeaway because they are afraid they're going.
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To lose the sale.
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And the point is, I've always believed exactly what you're saying. No,
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it just shows that, hey, you're providing something value. If
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it's not good for them, it's not good for them.
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Or if if they don't want to do business, they
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