In today's video, we're talking about how to set a price for your product?
This can be a tough one for so many entrepreneurs because it isn't always easy to put a value on
your own product. So let's go over the basics of pricing your products today.
Hey, I'm Marley Jaxx, I'm the CEO of Jaxx productions and I've helped thousands of
entrepreneurs build out all their products and services including pricing them all the
way to high ticket. So I'm excited to share this content with you today. First, I'm going to go over
the 4 questions you need to ask yourself before you decide on any prices for anything.
Then I'm going to share with you 4 different pricing strategies including one that plays into
the psychology of your customer knowing what they're going to be more inclined to buy.
Then I want to tell you the most common mistake that entrepreneurs make when pricing their products
and how you can avoid it. Let's first dive into the 4 questions that you need to ask yourself and
these are questions that you need to understand before you can price anything. The first one is
about your market, what are they open to paying? What is actually within their budget? Because you
got to price it reasonable but also expensively affordable that they are going to take this seriously.
What I mean by that is think about your audience. Let's say if maybe you're selling something
to a younger demographic. Maybe you're selling to kids or teenagers a product or a service.
Well keep in mind that their parents are going to need to be involved in that purchasing decision
So it's probably not likely that you're going to be able to sell children or kids a very
high ticket program that's worth like thousands and thousands of dollars. You're going to want to
make your value ladder more affordable but also in a way that it is at a price point that they're
going to respect. I had a consultant I was going to hire in my business that was going to help
me to grow my business and after this whole sales pitch and all these benefits and social proof of
the other companies he's helped. I was expecting a high ticket price tag especially with the amazing
results that he was promising for me. But instead what he proposed to me was a very low hourly rate
when I was expecting it to be in the thousands. Now as much as it had built up that rapport with
me before and I was excited about working with him. I also had some hesitations wondering,
"Why wasn't this more? Is he new at this? Was he lying to me about this?, and I didn't end up going with
the service because it wasn't priced at a point that I actually took it seriously. So how can you
price your products and services in a place that is going to be affordable for your demographic
but expensively affordable enough that they're going to appreciate it. When people pay more they
pay more attention. The next question is what is the value of what you're providing? How is
it benefiting them or maybe what are you saving or preventing them from spending in other areas
of their lives? My friend Cristy Code Red is a celebrity weight loss coach and she is known for
getting weight off of people and keeping it off. She helps people to lose 10% of their body weight
every single month without diet pills shakes or exercise that sounds pretty valuable, doesn't it?
Now her clients can sign up for a custom program where she works for 3 months with them to
help them get to their goal weight. And this custom program is a thousand dollars and one might think
that's expensive. But it's also priced at a point showing that this is something that they're going
to have to take seriously. If they're going to invest this much in their health they're
going to probably be more invested emotionally in getting that result. They're going to be more
committed to it by showing the social proof of all the people thousands of people that she's helped
to lose weight. Even people that they've gone for surgeries, they were on their last chance,
they had no hope left. They finally got to their goal weight because of Cristy's proprietary program.
And it might sound expensive but Cristy is also using the messaging of what this is going
to save them from. You could either spend that thousand dollars and be committed to this program
or you can spend that money on medication, on diet shakes, on pills, on exercise equipment.
Think of the time investment. You're either spending the time committed to this or maybe
you're spending the time in a doctor's office. The next question is what are your competitors
pricing similar offers at? And it's not that you need to be more expensive or less expensive.
But it's good to know what the competition is doing so you can compare. I want to caution you
that when you're looking at what your competitors are pricing. I don't want you to say, "Okay, well
then I'm going to be cheaper than that". Because I don't want you to discount your price and for your
audience to think that you're discounting the quality or the value that you provide.
And the last question you need to consider is what are your expenses? What does it cost for you to
produce this product or service? It's so important in your business to know your numbers. If you have
a service that you're charging a thousand dollars for But because you have to pay for advertising
or your team, or graphic design, or whatever else and it actually costs you more than it makes you?
You're going to need to make some changes in your business. You want to make sure that no matter what
you're selling that you're going to have a profit after your expenses. Now that you know those
4 questions you need to ask yourself before deciding on your price. I'm going to share with you
4 different pricing strategies that you'll consider in creating your pricing. The first one is premium pricing.
Remember how I mentioned that you might look at your competitors to see what their pricing.
Premium might mean that you are the most expensive. And think about industries or products that we
consume right now where maybe we go for the most expensive because we know that it's top quality.
When you're looking at the car industry what's more appealing if money weren't an issue. Would you
want the Tesla or would you want the Toyota? Now the next option is economy pricing obviously the
opposite of premium. An economy is when you can price your products lower. This is good if you want
to be able to reach a wide audience, more people that can afford it, and if you can also afford that
in your business if you have low expenses. The next strategy is called bundle pricing and what this
does is if you take different products or services that you have and you bundle them together.
What this does is it gives your audience a higher perceived value of what you're selling. And lastly,
let's talk about some psychology pricing. Have you ever noticed that a lot of products might
end in 99 cents maybe it's 29.99? You ever wondered why didn't they just round up to 30 dollars?
It's only one cent of a difference. But the psychology behind this is that customers tend to look at the
first number instead of the last number. So that 29 seems lower than 30. It's kind of a funny tip
but test it out I swear to you it works. And if you like tips like this be sure to subscribe to
this channel and putting out more tips like this every day of the week. I'm going to wrap this video
up with the most common mistake that people make when they're pricing their products and services.
Whenever I have clients that come to me and say, "Marley, my offer isn't converting do I need to
lower the price?". Most often my answer is "no" that is usually the last thing that I would tell anyone
to do. Most of the time it isn't the price it's how you're positioning the value. The value of
your product or service needs to seem like more than the cost to invest in it and the way that
you can demonstrate this is through some of the strategies that I mentioned. You can bundle things
together, you can add more bonuses, you can put more in the messaging of how this is going to help them
to overcome maybe pain points in their life, or save them from other investments that they would
have had to make. Whether that's time or financial investments. Take a look at your offers and see
how you can really portray, the value that the value is going to be more than the actual price.
Now that you know a bit more about setting a price for your products. Imagine being able to use those
products as an infinite cash flow loop. A system that effortlessly ascends your audiences all the
way to your high ticket offers. If you'd like to learn more I've created an entire sequence of
how you can implement this in your business. I've created a whole blueprint for you it's called the
Infinite Cash Flow Blueprint. You get access to that for free by clicking the link below.