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You Your Brand Your Pricing Your Image, what does it all say?

by thesuccesscoach
9 replies
Hey dudes and dudettes

How are things?
Today I got out of the metro and started to think about the forum, IM in general and an audio I had listened to.

In this particular audio they talked about pricing and it's importance.

The thought process went like this
in the offline world plumbers, electricians etc don't sell their services cheap, in fact even with all this recession going on, prices have never crashed. I think in Ireland a plumber will cost you a minimum of 20 euros just to call out (probably a lot more).

In the audio the person was explaining that sometimes in IM people under price themselves. 1 on 1 coaching for $20 a month
I will install X and Y for only $7 etc

The central point was being that customers will remember you as the $7 once in your funnel and the you will find it difficult to sell more expensive services later on.

I remember this from a sales training course as well. We were told always offer your most expensive product or service first, for example life insurance with all the trimmings - $200 a month
Then you offer the deluxe version for $150
and so on until you get to the basic offer which is $75 per month

It is easier to sell the $150 offer now with all the pricing on the table than if you were start low and try to end high.

What do people think of this?

Do many people do it wrong by pricing themselves too cheap?

I am thinking perhaps yes?
#brand #image #pricing
  • Profile picture of the author barbling
    It all depends upon how you position it.

    Some people buy $7 products continuously to get the 'retail high' of spending money that contributes towards their dreams.

    Other people are serious about their business... and view their expenditures as cruicial tools to build their bottom line.

    The $7 buyers will buy again and again and again even though they will never use the tools they purchased.

    It's like folks who want to lose weight and buy all the programs/exercise equipment/etc. It makes them feel better about themselves. It's an emotional purchase... like retail therapy.

    I've done it both ways (low ticket/high ticket). Honestly, it all depends upon the business *you yourself* want to craft.

    Your mileage may vary, of course.
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  • Profile picture of the author thesuccesscoach
    True Barb true

    But I guess can you do enough 7$ to make enough money to retire

    what if you want to ramp it up and sell a $500 coaching program after this?
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    • Profile picture of the author danieldesai
      Originally Posted by thesuccesscoach View Post


      what if you want to ramp it up and sell a $500 coaching program after this?
      Yep, there are a lot of people who actually do this.

      Their funnel structure typically goes like this:

      Free opt-in bribe to capture email >>> trip-wire offer ($7) >>> upsell for ($47 - $97) >>> higher-ticket product (often anywhere between $297 - $997)

      Granted the numbers might be a bit different, and there might be a recurring billing product thrown in there as well, but the above structure is pretty common these days.

      Regards,
      Daniel
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    • Profile picture of the author barbling
      Originally Posted by thesuccesscoach View Post

      True Barb true

      But I guess can you do enough 7$ to make enough money to retire

      what if you want to ramp it up and sell a $500 coaching program after this?
      I've done that myself (although it was $997).

      Very simple - build a fanbase.

      Start a FB group where said fanbase can interact. Mine is Perking Up Profits.

      Start with $79/$147/$197 3 week masterminds - create a webinar that gives away free info regarding the topic and then upsell into said mastermind.

      After a few months, announce you're starting a private mastermind group for a select few.

      Charge accordingly.

      Works great.
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  • Profile picture of the author thesuccesscoach
    indeed that is true and yes the structure works,

    although to jump from 7$ to $997 takes a lot of trust to be built up, which of course as we know is really important
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    • Profile picture of the author Lucian Lada
      Originally Posted by thesuccesscoach View Post

      although to jump from 7$ to $997 takes a lot of trust to be built up, which of course as we know is really important
      And with everything, you have to start somewhere. It's easier to get your foot in the door with a $7 price tag than with a $200 one.

      Personally, I'm more inclined to follow the "start small and sell increasingly more expensive stuff as time progresses" than to start big and then sell lower-priced stuff. It actually makes no sense to sell cheaper stuff once you know they buy more expensive ones, but that's just me.

      That's one aspect of your discussion. The other is, as you've said, that people undersell themselves on the Internet. That's different from selling low-priced products/services. $10 for a five-page e-book is a low price, but that's the be expected given it only has a handful of pages. But $10 for a 30-minute Skype call is indeed too little, and people buying your coaching will be trained to expect a lot of value for little money, whereas people spending $10 for a five-page e-book will not. See the difference?
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  • Profile picture of the author thesuccesscoach
    you rock barb
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  • Profile picture of the author jdjenkins
    I think pricing also depends on context, and the buyer's perception of value. Many people won't buy "gigs" on Fiverr because they perceive a $5 product to be low quality. A purchaser may well expect to pay (and have budgeted for) a cost of $100 or more for a web designer. They may take some convincing that a $5-dollar job can give them the same quality!
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  • Profile picture of the author Jason Kanigan
    Originally Posted by thesuccesscoach View Post

    Hey dudes and dudettes

    How are things?
    Today I got out of the metro and started to think about the forum, IM in general and an audio I had listened to.

    In this particular audio they talked about pricing and it's importance.

    The thought process went like this
    in the offline world plumbers, electricians etc don't sell their services cheap, in fact even with all this recession going on, prices have never crashed. I think in Ireland a plumber will cost you a minimum of 20 euros just to call out (probably a lot more).

    In the audio the person was explaining that sometimes in IM people under price themselves. 1 on 1 coaching for $20 a month
    I will install X and Y for only $7 etc

    The central point was being that customers will remember you as the $7 once in your funnel and the you will find it difficult to sell more expensive services later on.

    I remember this from a sales training course as well. We were told always offer your most expensive product or service first, for example life insurance with all the trimmings - $200 a month
    Then you offer the deluxe version for $150
    and so on until you get to the basic offer which is $75 per month

    It is easier to sell the $150 offer now with all the pricing on the table than if you were start low and try to end high.

    What do people think of this?

    Do many people do it wrong by pricing themselves too cheap?

    I am thinking perhaps yes?
    Depends on you and your market.

    Who are you trying to attract as a customer?

    A higher level business owner simply will not buy a $7 product...or get $500 help for web design...because they see the vendor as not having the "Oomph" to help them at their level.

    Do you have the marketing collateral and skill to support the higher level business?

    Pricing by most people here is haphazard and without strategy. They're trying to make "as much money as they can", which is no target at all, and therefore they make nothing.

    If they chose a revenue target, and therefore a pricing level, they would automatically choose a customer profile, and therefore a service level to warrant that price. And that would dictate what kind of marketing they would have to do.
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