5 Factors That Influence The Price
1. The reputation of the person selling – if this is someone who is very famous or who has a lot of impressive credentials and qualifications, then they can charge more for their time. Your aim is to build up to your reputation so that you can charge lots for short lunches!
2. How much one on one time you’re getting. That high price that Elliott was charging is high because he’s speaking directly to that one person and giving them all of his attention. Conversely, Pat Flynn’s seminar would have been to a room of people. This makes it less exclusive and means he can make a profit by charging lots of people at once.
3. The amount of information/time – Of course, the amount of information and/or time you are providing is going to impact the amount you can charge. If you have a course that offers 100,000 words worth of text, 48 hours worth of video, and one-on-one time with you, then you can obviously charge a lot more than if you’re selling a short email course. Likewise, five days and five nights with Tony Robins is of course worth a lot more than a single seminar with him.
4. The information – How exclusive and exciting is the information you’re providing? If you can present a formula that will make someone instantly get the body of Captain America, then you can charge thousands and thousands of dollars. That’s because it’s powerful and it’s exclusive. On the other hand though, if you’re simply offering an in-depth training program that’s not that different from all the others out there, you’ll need to charge a little less.
5. Exclusivity – Many high-end coaches charge a lot for their courses because they are few and far between because they are picky over who they select and because there is a lot of mystery surrounding them. The fewer seminars you give, the more exclusive and scarce your time and information is.
At the same time, you also need to think carefully about the type of person you are targeting and how much income they have. You also need to think about the emotional heft of what you’re offering and whether it’s enough to encourage someone to spend a lot of money.
If you’re teaching
millionaires to find love, you can charge a lot.
If you’re teaching
students how to ice skate, you might want to lower your price.
Bonus … Pricing Examples
The precise price you charge is of course up to you. The worst-case scenario is that no one pays for your product and you can always lower the price at that point (in fact, it’s worth leaving yourself a little wiggle room in terms of price so that you can offer discounts and special deals).
However, if you’re looking for guidance, then a good place to start is to consider what most other people are doing. Here is a rough guide that might help you get an idea of what to charge for your product:
• $99-$300 – This is ideal for a one-day seminar or a brief, one-to-one consultation. You probably aren’t famous for this price, but you’re qualified/experienced/well-respected/have some exclusive information to share.
• $500-$999 – At this price, you are either doing the same as above except with a lot more experience and fame behind your name or you’re offering a lot more information and a lot more time.
You might either be providing a whole day one-to-one, or you might be offering a longer course. Elliott can charge this because he is world-famous. This would also be a good starting point for a basic online digital course.
At these price points, you will often be able to charge more for an additional product. Having a ‘tired system’ is a good way to get people biting and then to increase the price.
· $1,000-$2,000 – At this point, you’re now looking very much at a premium product. This is most likely going to be something very in-depth in terms of what you’re offering and that means lots of materials, one-on-one time, and access to a gated community.
· $2,000-$5,000 – This is for people who are better known and who are providing the full package as before. This might be your ‘second’ high price item after you’ve used the first to make a name for yourself. Provide lots of great information, some real ‘take homes’, and attach your name to it.
· $5,000-$10,000 – This is something to aim for but isn’t likely to be what you’re doing to begin with. This is the kind of price that someone like Tony Robbins or Tim Ferriss can charge for their time. You will hopefully get to this point but not on day one!
The only way you can charge this kind of money is if you have a really powerful secret/system/method and you can really make your audience believe that (a money-back guarantee is a good strategy).
If you have more ideas like this, don’t hesitate to share them in the comments.
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