Pricing your coaching program or product can be a tough decision.
It’s amazing how much time you can spend thinking about whether it should be $267 or $297.
…or $1,247 or $1,249
The psychology of pricing your program is partly intuition and partly science.
That’s why I wanted to share with you 3 proven principles that will help you to make this decision a lot easier.
This is something I like to share with my Sell From Stage students and I hope it helps you today.
1. Choose a price that is a good match for your audience
It’s interesting in this coaching industry because there is a big push for selling high-ticket programs.
And I can see the sense in this because if your programs are more expensive it will attract committed people and you’ll make more money per person.
Well, not always.
The problem is that if you have a program that prices too many people out of your offer then you can sometimes make a lot less money.
I’ve had the chance to chat with many market leaders when it comes to pricing their programs.
And a lot of them say to me they “don’t want it to get too expensive” because they feel like the price they have for their current program sits in a ‘sweet spot’ for the audience.
That ‘sweet spot’ is where the price requires their audience to bring a good level of commitment to join, but it doesn’t price too many people out.
Getting more expensive isn’t always the answer, in fact I’ve had friends who have dropped their price by half and made twice as much money!
It’s just an interesting thing to consider.
I had an interesting conversation with Kayse Morris on the Expert Edge Podcast this week about how she has created a ‘low-ticket’ membership, but she has been able to make millions! You can check out the interview here
2. Your payment plan needs to capture a different demographic
Some coaches think that a payment plan is available just because everyone has a payment plan!
You need to understand the psychology of a payment plan.
The mistake people make is that they price their payment plan too close to the full pay price.
The problem here is that if someone could pay the payment plan, then they can most probably pay the full price.
An example of this is if your full pay is $997 and your payment plan is 2 x $597.
Your payment plan installment should capture a different demographic. That means having your payment installments priced at 40%-20% of the full price.
For example, if you have a program that is $1,997, then you’ll want to have a payment plan that is less than $500.
3. Make sure the perceived value your program delivers is more than 5X or even 10X times the price
Value is all about perception.
So when you articulate your offer you need to make sure that the value you’re articulating would be worth at least 5X more than they’re spending on the program.
Obviously, if you help people make money, like myself, it can be a little easier to show that value.
But if you sell something that doesn’t make someone money an easy way to articulate this is to ask them, “If they had the result you help them with, what would it be worth to them?”
You could even ask them to write down a value of what that would be worth from a money perspective.
The key here is to ensure there is a big enough gap between what the audience is paying and the perceived value they get from your program.
So three ideas…
- Choose a price that is a good match for your audience
- Your payment plan needs to capture a different demographic
- Make sure the perceived value your program delivers is more than 5X or even 10X times the price
These are three principles that I think you should consider when you’re pricing your programs.
If you found this helpful, make sure to put your name down on the Sell From Stage Academy® VIP waitlist as we discuss creating irresistible offers and how to price them inside the Academy.
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Now onto the Podcast this week…
This week on the Expert Edge Podcast I interviewed Kayse Morris.
The reason I wanted to bring her on the podcast is because not only does she run a multi-million dollar membership program, but she does it using low-ticket offers!!!
She helps teachers gain back control of their income and generate revenue from their expertise. Her audience of teachers is probably not going to pay $10,000 for a program. She has priced her program to create demand, but also high revenue in her business.
Kayse is a great example of someone who has created a program that matches her audience and has scaled that up to run a very profitable and successful business.
In the interview you’ll discover:
- Why pricing your program at the right level is crucial to creating momentum in your offers
- How to build a membership program that suits your personality and doesn’t burn you out
- The specific mindset shifts you need to have to go from a six-figure to a 7-figure business
- You’ll walk away from this interview feeling inspired and ready to build your business on the next level
>>> iTunes Link: Enjoy this interview w/ Kayse Morris on Making High Revenue With Low Ticket w/ Kayse Morris
>>> Listen on all other platforms
Colin “The Price is Right” Boyd
P.S. Here are some other simple ways that I can help you grow your expert business:
- Register yourself for the VIP Waitlist of Sell From Stage Academy®. This will ensure you don’t miss out on any bonuses or unique opportunities when the Academy opens again!
- Listen to the latest episode on the Expert Edge Podcast to get all my latest content and interviews with industry experts Click To Subscribe
- If you want to implement high-converting virtual events and webinars in 2022, you can book in a quick call to chat through your strategy and how to improve it here.