Pricing
The whole goal with pricing is to make someone uncomfortable with paying you, that’s how you go from one-off purchase to investment.
You want people to be invested in you and your offer because they’re going to show up for. If you payed $30 for a coach vs. $3,000 for another, who’s calls are you going to make SURE you show up for?
Funnel hacking to find price options
Go to your competitors page
Opt into their funnel (newsletter, bio DM automation, etc.)
Get on a sales call
See what their charging and how their process work.
The key here is to not undervalue yourself.
If you've built out your offer correctly it will be a no brainer for your ICP to invest a larger amount. That’s why solving as much pain as possible is the driving factor behind offer buildout.
If you have an existing offer and want to make sure your pricing is correct:
The perfect close rate benchmark is 30-35%. If you have a higher close rate than that, increase the price by $1000 until it levels out.
Perceived value also plays a role in determining the price:
(also keep in mind, I know where saying price here quite a bit but on sales calls you ALWAYS say investment.)
The more expensive your program or product the higher the perceived value, this is backed up by a study done about Wine.
Basically researchers took the same bottle of $5 wine, poured it into two glasses, but told a panel of sommelier’s that the glass on the left housed $1000 wine.
The wine experts all claimed that the $1000 wine was so much better, more flavorful, etc.
That is the essence of perceived value.
One way we can also rationalize price is through:
Bonus and Guarantees
When you list bonuses on your offer sheet they will look something like:
Bonus Name ($$$) - explanation
Examples
Pre loaded landing page software with our exclusive templates: ($500)
Website led to $5k increase in revenue for my company
Access to GHL, sales CRM and software ($200/month)
Keep track of sales; increase in total revenue. 13.4k cash collected in 1 day
Text support for your clients (3-4 hours a day)
Save time with automated responses to FAQ
How to present bonuses:
“Only people who signup for XYZ program will have access to bonus #1, #2, and #3. They are never for sale or available anywhere else other than through this program
If you buy today I will add on XYZ bonus that normally costs $1000 for free. I do this to reward action takers.”
The value of these bonuses should always be more than the core offer. However, subconsciously your prospects will think that the core offer is more valuable than the bonuses.
When thinking about what bonuses to include, consider:
Will this bonus make their situation faster easier, or less effort?
Provide social proof to paint a vivid image of their dream result.
Know that tools and checklists are better than additional training (lower effort and time, value will be higher)
Will this bonus solve problems they will face in the future?
This shows that you have confidence in their success which in turn increases conviction and thus, the perceived likelihood of success.
Now when it comes to guarantees…
Guarantees are a huge selling point and lever for
People who think its too risky to buy
People who need a little push over the fence
The idea of anything being 0 risk appeals to every single person, so utilize that.
Type of guarantees:
Unconditional guarantee
Example: unconditional 30 day money back guarantee no questions asked. This shows an insane amount of confidence in your product.
Conditional guarantee
Example: If you don’t achieve X in Y time, we will continue working with you until you do IF you attend coaching calls, actively communicate, etc.
Anti guarantee
This is more of a “We’re so good in this market that we don’t need a guarantee, so take it or leave it.”