Yes you read the correctly.

Starbucks sells an espresso machine for $2700.

And you thought paying $5 for a latte was crazy. 

Let me explain their reasoning in a minute…

…with some help from Perry Marshall’s 80/20 Sales and Marketing book.

If you don’t have a copy I highly recommend grabbing a copy as soon AFTER you finish reading the amazing email.

Are you familiar with the 80/20 principle?

It’s also known as the Pareto Principle.

Richard Koch wrote The 80/20 Principle and Perry Marshall applied the principle to sales and marketing.

In a nutshell, 80% of your revenue comes from 20% of your customers (probably your favorite clients). 

80% of your customer service complaints come from 20% of your customers (probably your "pain in the ass" clients who invested in your low-end products). 

You can apply 80/20 to almost any scenario and the consistency is incredible.

To see this for yourself, Perry created an 80/20 measurement tool at

Back to that $2700 espresso machine.

Let’s say 1000 people go to Starbucks. 

The least amount they will pay is $2 for a cup of coffee. 

When you apply 80/20, 20% will spend four times more than $2 (latte and a scone). 

The top 1% of the 80/20 curve is willing to spend $537.

This is hard to do at Starbucks unless they offer high end products like the $2700 espresso machine. 

This is why you need a high-end offer for your business. 

Some of your customers are ready to invest in your high-end offer today.

It’s a numbers game so why not focus on your top 20% who you love working with and are ready to pay premium prices?

About the author 

Ted Prodromou

Would you like me to help you?

I'm the #1 best-selling author of Ultimate Guide to LinkedIn for Business and Ultimate Guide to Twitter for Business. People call me America's Leading LinkedIn Coach.

I'm the founder of Search Marketing Simplified, LLC, a full service online marketing agency. The SMS team designs and implements advanced LinkedIn and social media lead-generation strategies for small to medium-sized businesses. SMS will set up and manage your marketing funnels using organic, social and paid traffic.

Did you know I've been working with the internet since 1991, long before Al Gore invented it?

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