Want to know how to price your programs so you can get paid what you’re worth, but still sell the darn thing? Today you’ll learn how to price your programs the right way, what to avoid and the pricing trap you need to stay away form.
Do you randomly grab a number from the sky (but magically make it end in .97 or .98 ?)?!
And if you’re being honest, when you sit down to price your stuff (your coaching calls, one-on-one work, webinars, coaching packages…the list goes on), you think, “am I even WORTH this? Who the hell am I to charge so much?!”
There’s a right and wrong way to price your products – and unfortunately, when you’re trying to choose a price, it’s usually done very, very wrong. The ‘wrong’ way will keep you stuck on an online business treadmill to nowhere: no cash flow, no capital, no idea what your revenue is month-to-month.
So you’ll consume loads of content, spend a generous amount of money buying low-ticket courses from all the gurus, and download every podcast you can get your hands on to figure out how to sell more of your stuff.
But pricing itself AND your price points could be part of the problem — and it could be part of your business model problem in general.
How To Price Your Services
So pay attention because today, I’ve got a brand new free training for you to learn how to price your programs the right way when you’re in a price-based business — the sweet spot to you getting paid what you’re owed AND attracting loads of new clients.
You can watch the free step-by-step training right here:
The Wrong Way to Price Your Offers
Based on the Competition
The wrong way to price your services is based on what competitors are charging. I’ve seen it too often, someone wants to start a business so they look at what others are doing, create something very similar, and then price it at less than what the other person is charging. This doesn’t work long term for the reasons I’m going to talk about shortly.
The other thing I commonly see is people lowering their prices when competition hits the market. Again, this is not a viable long-term business strategy. The lower the price, the MORE you have to sell of a product to make up the difference. Oftentimes, this results in running sale after sale to ensure you get the volume needed to be profitable. This can also dilute the perceived value of the service or offer which will just hurt you more in the long run.
The Right Way to Price Your Services
There are several things to keep in mind when it comes to pricing your services. I’ve broken them down into two categories:
The Formal Ways to Price Your Services
Hard Costs: There are certain fixed prices associated with your programs and services that are considered hard costs (software, team, platforms to name a few). These costs are the same regardless of what you charge the end customer. While it’s possible that you need or have a ton of overhead costs, it’s important to know what those costs are when you are thinking about your pricing and profit margins.
Your Hourly Pricing: You will also want to take into account the amount of time you will spend delivering the service or program. Be sure to account for any live components like calls or coaching sessions, time to answer questions in a group or via email, and any time behind the scenes prepping, shooting training, creating materials, etc. Having a solid estimate of your time and multiplying that by your hourly rate will help ensure you are compensated for your work.
Market Demand: While you don’t want to base your services or pricing directly on the competition, it’s helpful to know what similar products or services are selling for in general and what customers are willing to pay for these services. You will also want to consider the demand for the service as a higher demand usually means a higher price. Using this as a baseline will help you remain competitive in the market.
Profitability: When you are first getting started, it’s important to account for your audience size and be realistic when it comes to your first sales. Anticipating slower sales initially and knowing your costs can help set you up for profitability from the beginning. When I started selling DIY legal templates and the Ultimate Bundle™ 6.5+ years ago, I didn’t have an email list, a big social following or Facebook group, or a load of cash in the bank. While it was tempting to hire a designer and a copywriter and go “all out” for my first launch, keeping my costs to a minimum allowed me to maximize profit margins early, create capital and reinvest into my business for growth.
The Informal Ways to Price Your Services
Above we talked about the more formal pricing model – but there are some more intuitive things that I think are important to take into account when pricing your services.
Your Differentiators: What makes you different from the competition? What do you offer that the others aren’t offering? Maybe you are adding a live component, or a bonus training, or something extra that you haven’t seen the competition do. Those differentiators should be taken into account when setting a price. If you don’t currently have something, is there something you can add?
High Volume vs. High Touch: You will need to decide if you want to be a high-volume dealer or a high-touch dealer. There is no wrong answer to this question – only what is right for you and your business. High Volume will allow for a lower price point, but require more people to make a profit. High-touch might require more direct contact with your customers, but will ultimately allow you to make more money with fewer sales.
Unique Position: Differentiators determine what makes your products or services different from what others are offering, but your unique position is what makes YOU different from the competition. For example, I am a former corporate attorney, who started a health coaching business before I landed where I am (selling legal templates and training to online business owners). My unique position is that I know what the online space needs from a legal perspective because I’ve been in both worlds. Knowing your unique position will help you stand out from the competition and show the value in the services you provide.
“Resentment Killer”: Last, but not least, is what I call the resentment killer. At the end of the day, no one wants to feel like they aren’t being adequately compensated for their efforts. When you feel like people aren’t paying enough for what you provide, it quickly breeds resentment and can quickly lead to burnout. Long-term success is based on feeling good about your services and running your business and pricing your services appropriately can play a big piece in feeling valued for your efforts.
The bottom line is that once you’ve set your price, you want to be sure you feel confident in the value you are providing and can communicate that value to potential customers. No matter how high or low the price of your services, someone will tell you it costs too much. It’s important to know that this price sensitivity happens for even the lowest ticket offers (I actually had MORE people request coupons and discounts when I had a lower-priced service than my highly-priced offer). Remind yourself that you are worth it. Not everyone is a great fit for your offer. There will always be a customer base who see the value in your product or service and are happy to pay your price. You want to work with the ones who believe in the value they are getting and let the others go.
Finally, remember that you are not your revenue. It’s really easy to take things personally when you are a personal brand. There will be highs and lows when it comes to business – but it’s not a direct reflection on who you are as a person.
Because I used to be in the coaching business, I learned a lot from my own experience and those in the health coaching community about how to price your coaching programs (1:1 AND group coaching programs), or any online program in general.
I used the pricing strategies I teach you in this free training to build a sustainable business overtime. And today I’m passing it on to you.
When you go watch the training here, be sure to ♥️ the video and drop me a note in the video comments to let me know if the video was helpful!
Next Step: Watch my free legal workshop
If you’re ready to legally protect your business and have the legal knowledge you need to know what to do with difficult clients, watch my free workshop ‘5 Steps to Legally Protect & Grow Your Online Business’ right now by saving your seat here.
In that workshop, you’ll learn:
- How contracts can actually save your (vegan, GF) bacon — if you have the right one.
- What your website needs to be legally protected.
- How to keep copycats off your content.
- The mindset shift you’ve got to make if you want to actually grow your business without looking over your (online) shoulder.
- The only way to form your business so that you’re personally and professionally protected.
Ready to watch? Sign up for my free legal workshop right here: