Posts Tagged ‘pricing online products’

What is it that you are using as a benchmark to decide your pricing? Is it market related? Is it based on the value that you are providing? Or is it simply based on what you think you can get? Often when I consult with clients one of the first things I do is look at their pricing and challenge them to increase it. This often meets with resistance. So many people believe that they will lose customers if they increase their prices. But is that really the case?

Finding the Right Price for the Value you Offer

Often business people simply place a price on their products because that is what they think people with pay. The problem with that is that you often have to churn out large volumes of that product in order to meet your targets. Raising the price of your average sale is one of the three simple ways in which you can grow your business. To be able to do that without putting customers off is simply a case of showing them how much value they are getting for the price. I have one client that is a massage therapist. Up until a point the average price she charged was just $70. After working through a program together we developed a new package that instead sold for $500. Now she was not a sales person and she had never sold anything for that price level before. But in the package she wasn't just offering a single treatment, she was offering her clients a whole lot of added value. The amazing thing is that she went out there and promoted the package and got results.   With another client we worked together on her pricing structure and in just 6 weeks later she brought in revenue of over $25000. Developing a premium priced product is a way in which you can substantially boost your revenues. It is one way in which you can raise your prices without putting customers off. They will be so impressed with all the added value that they are getting that to them it will feel like they have still gotten a bargain.

How to raise your Prices and keep Customers

•       Know the value of what you are providing to your customers in terms of your time and expertise.
•       Believe in your products. When customers see the confidence that you have in what you are offering it will give them the confidence to believe that you are offering something of value.
•       Provide products that offer customers incredible value.
•       Make sure that you are able to demonstrate the value of what your customers will be getting.

Pricing is often one area where far too many business owners sell themselves short. Especially in the consulting industry, many people undervalue their expertise. Don't be afraid to ask for your true value in terms of price. When clients see the results and the added value that your product offers they will often pay your price with a smile.

Tips for Setting Your Price is just one topic Bernadette Doyle is covering in her brand new FREE WEBINAR – Big Income Leaps.   Register here:

“Big Income Leaps”

FREE Masterclass

Tuesday 14th June, 8pm UK, 3pm EST

What’s holding you back from experiencing the breakthrough you want?

Chances are, you’re not taking chances like you need to. You’ve got to put it all on the line.

It’s not about doing more business the old way. It’s a new strategy - to create and sell the high-value, big-profit solution. That’s what you’ve got to do to experience the big income leap you’re looking for - the huge increase in your profits that will lead to MORE free time, MORE freedom and MORE fun. That’s what I’m going to cover on this Masterclass, “Big Income Leaps.”

Here’s a taste of what I’ll talk about:

• A common mistake people make when creating programs - and why you’re better off starting BIG

• Why you don’t want to attract the clients who go for the lowest prices

• How to find clients who are willing to pay you BIG for your expertise

• Why it’s CRITICAL to offer a premium priced product, programme or service (and it’s not about the money)

Proven examples of high value, high profit solutions - they’ve worked for Bernadette and her clients, and they can work for you, too

• What your solution must deliver to your clients in order for it to serve your clients and you

• 5 key questions that will help you determine what kind of high value, high profit solution is right for you

• Tips for setting your price - you may be surprised

• Successful sales strategies that have worked for Bernadette and her clients - and how to use them depending on what type of offering you’re creating

• Why you MUST NOT reinvent the wheel when you’re aiming for a big income leap - and how to link what you’re doing now to a high value solution

Exercises and assignments you can use to get past your limiting beliefs about sales and selling

• And much more.

Ready to join me - so you can finally take hold of that Breakthrough?

Reserve your spot here:

Business seminar

It's your responsibility to establish the value of the service you provide.

Today I’ve got some suggestions for you on how to set prices for your training.

I’ve recently been receiving regular reflexology treatment. At my last session the reflexologist told me she’d been invited to submit a proposal to provide training at a dance school. “I have no idea how to structure the proposal, or even what to charge”   she told me. “They’ve asked me to run 12 two hour sessions”

“How many people will be receiving the training?” I asked. “10″     she replied. “And overall they’ll be getting 24 hours of training. What would it cost if they individually went and bought 24 hours of reflexology training on the open market?” “At least 600 euro per person”, she replied.

“Great. Well 10 times 600 euro is 6,000. So immediately we’ve established the value of this training at 6,000 euro”.

Her eyes widened, “That’s 3 times what I was thinking of charging.”

“Well I’m not saying you should charge that, but I would definitely include that piece of information somewhere in your proposal. You see, perception of value is a very subjective thing. If the decision makers have an idea that your time is worth 40 euro an hour, and they see you providing 24 hours of training, then the figure they may have in THEIR heads is 960.

On that basis, it will be difficult to persuade them to part with 2,000. You’re going to encounter price resistance and have a lot of objections to overcome. Even if you can convince them to pay 2,000, they’re going to have a feeling that they were overcharged. Even though their expectations were unrealistic and didn’t take into account your preparation time. It will be an uphill struggle.

In contrast, if you take the time to establish that this training would cost them 6,000 if they were to source it elsewhere, you could charge 3,000 and they will still feel like they’re getting value.

It’s your responsibility to establish the value of the service you provide. Before this conversation, my reflexologist was going to set her prices by calculating how many hours were involved, and then multiplying that by her hourly rate.

Yet her hourly rate as a reflexology practitioner is IRRELEVANT to the proposal she had been asked to submit. She is providing training to 10 people NOT a reflexology treatment to one. It’s a completely different service, with a completely different end value and should be priced accordingly. Same applies if you are a coach, consultant or providing any form of one-to-one service.

If a customer has a certain figure in their head, even if that figure is unrealistic, it’s YOUR job to educate them.

You don’t want clients agreeing to your fees, but feeling that they were overcharged. And they will if there is a big gap between their expectation and your fee.

So well before you reveal your fee, make sure you have reset their expectations and demonstrated convincingly what your solution would cost were they to source it elsewhere. Please note, you need to do this BEFORE you reveal your fee. If you wait until afterwards you will simply come across as defensive and trying to justify your fees. It’s not a pretty picture.

Making the effort to establish value and educate your clients up front can pay off in many ways.

You can eliminate price objections before they come up, and notice that in this case the reflexologist could submit a proposal that was 50% higher than she had planned AND it was able to present her price in such a way that the client knew they were getting good value. That’s a real win-win. Had she NOT taken the time to establish the value up front; she could have had a real struggle convincing the client to part with her original figure of 2,000.

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