Do you struggle to figure out how to price your programs?
What makes this so challenging?
It can bring up tons of issues and trying to come up with the right price can be confusing!
For one thing you might feel you don’t have a tangible product you are selling and so its like shooting in the dark.
And then there is that sneaky self-doubt and scarcity mind-set gremlin. He tricks you into under-valuing what you are offering.
From that place you imagine that none of your potential clients will pay over a certain low amount. You assume that people make decisions based on what they can afford and you assume that all of your potential clients are also in a scarcity place.
Actually there are many reasons people will make a decisions to buy and most of it is not based on the price. Price only becomes important when buying a commodity product where you can compare apples to apples. In fact, most of you are not offering exactly the same thing as someone else.
For one thing, you are a big reason they choose your program and you, yourself are not duplicatable.
You train your team and then can emulate your system but there is something about you that attracts them. And then, the offering is not exactly the same as anyone else’s. Even if it was, for some reason they have connected with you and if your program fills a strong need they will say yes if you have done a good job articulating this in the marketing messaging as well as the sales process.
So, the price is only a part of the equation. The other part is your marketing messages. People want to know exactly what and how they will benefit. In other words, they want to know what they are paying for.
Fair enough! Anytime I spend over twenty bucks I want to be clear this is something I need. If you are selling a higher priced program people will scrutinize even more and really want to know the take-a-way.
This very issue came up for me recently. I am getting ready to promote a new ” Wild Women in Business” event next year and I dropped into this same process. It threw me a bit but I realized it was only my emotions that clouded the issue.
My emotions are triggered by very old messages that I thought were dead and buried. I can even hear the words of someone talking to me, that make me question my own ability and self-worth. Crazy, as this was so many years ago.
Once I realized how I was getting de-railed in this way, I did a reality check by asking my mastermind buddies what they would charge for something similar.
Then I did the following process:
1. I totalled up my expenses for the event and then I added on another 10% for stuff I might have missed. Expenses include early bird discounts, affiliate payments, rental fees, food, paying team members and credit card fees. 2. I decided what I want to profit from this event so it would feel like I will be getting the energy in return for energy output.3. I added up those two numbers to get a total and divided it by my desired number of participants.
4. I then looked around at what other people are charging for something similar to see if I was in the ballpark.
When I did this there was also the benefit of really looking at the expenses closely ahead of time. I am usually quite sloppy with that part. If I want to earn more money I have to be a better money manager.
What other questions do you have regarding pricing?
How does this formula help you with your pricing your programs?
It all feels good. Now I am off to do the marketing messages. The webpage should be up in a week so watch this space.
In the meantime I am doing a free webinar on May 2nd. The Wise Woman and the Four Money Traps.