LESSON SIX: STOP FRETTING ABOUT CASHFLOW & PRICE YOUR OFFER TO SELL ON REPEAT
Let’s debunk the myth that setting prices for your offers has to be difficult, okay? Always remember that you can change your pricing as necessary, but it doesn’t have to be a stress-inducing event every time you create a new offer.
Even when attracting high-end clients, we’re faced with a pricing conundrum: Price too low (like most coaches are used to doing) and you’ll get passed over as “regular,” “cheap,” or “doesn’t know what she’s doing.” Or they may not even notice the offer.
High-end clients are not usually bargain hunters. While they don’t want to get ripped off, they know they want to buy quality, and quality doesn’t come cheap in their world. Sophisticated, high-level clients expect to dole out the dough for high-quality experiences and products (and in fact, they’re legitimately attracted to them!). Psychologically, most people view higher priced items and offers as more prestigious (regardless of whether this is true or not!)
So, since your plan is to provide a stellar service or offer, you’ll definitely need the price tag to match. Get set to adopt a Premium Pricing Strategy.
This type of strategy simply means you’re placing a higher value on your product or service than your competitors. Will most customers price compare at this level? You may have a few who do that but remember, high-end service comes with a high-end price tag. If you can promise that type of service, you’re entitled to charge a premium price for it.
Think of these examples:
You can buy a perfectly fine Timex watch at any big box store for around $30 but some people prefer the image of a Rolex that has a price tag of $10,000. Does it have more bells and whistles? Maybe. But they both tell time. The consumer is buying the IMAGE, not the product.
The same is true of high-end cars. Can a Honda and a Bentley perform the same function of bringing you from Point A to Point B? Sure. But some prefer to travel in the luxury of the Bentley over the Honda. Again, the consumer is buying that IMAGE.
Let’s evaluate your pricing. Go back to your Step Five worksheet about Offer Magnification and check out those current prices. Do they seem fair based on what the customer is receiving in return?
Now look at how much personal interaction you’re adding to each program. The more you interact, the more you should charge. The client isn’t buying your time; she’s buying access to your expertise.
Also take note about how much outsourcing you do each month. Those prices should be incorporated into your product pricing. Every physical product you see on a store shelf includes the production costs and overhead, so you should think of your pricing the same way.
Lastly, be objective – or as an objective friend – if these prices sound fair based on the features of the offers and the type of Ideal Client you’re going after. Ask them about their first impression about the pricing. After some explanation of what the client receives, ask if that makes the price more reasonable.
If you feel the need for validation, take a BRIEF glance at what other coaches are charging for their services. Don’t get sucked down this rabbit hole of comparison…just glance at their prices and the features of their programs to get an idea if your price is in the ballpark. At the very least, publicize your new offer with its new price and track the sales. Also examine if the people who are buying are in your high-end range or not.
Never look down on sales but take notes about what you can tweak to make your offer even MORE attractive to high-end clients.
Exercise: Price Point Strategy
Use this worksheet to take your offers that you created with the Offer Magnification and attach a price point to them that will attract high-paying clients so they say ‘hell yes’ sign me up.