“Nice shirt!”
Marie: I told you I was wearing this.
“I told you I was wearing this!
Marie: Well, one of us has to change.
Q: Irene writes:
I want to create digital products based around my blog content and I'm having the 'scaries'
about slapping a price tag on it.
The content I provide is top notch and one of a kind. People pay to come to my classes
and private sessions, so I figure, why shouldn't I be able to charge for it online?
My question is, how do I figure out the best price to charge for this content?
A: Great question Irene because SO many people ask me this - What do I charge? And it’s
a very BIG topic that I could talk about for dayszzz.
Since I don’t have DAYYYZZ, I’m gonna give you a few steps to get you started and
help you find your product pricing sweet spot.
Step #1. Is you need to Understand Your Big Picture Positioning.
Here’s what this means. You never price your product in a vacuum. You need look at
the BIG PICTURE of your business and see where this product fits in.
Is this an entry level product that you want to feed into higher priced offerings? OR is
this your premium flagship product that you really want to charge high a price for?
But we can’t stop there, because you also need to think about your broader POSITIONING.
Here’s what I mean: How do you want to position your whole business in the marketplace?
So for example, do you want to be like Walmart that have super high volume and lower prices?
Or do you want to be like Bergdorf Goodman.They have much much higher prices and fewer customers?
Your answers to these questions help you strategically price your offering. And then you’re ready
for step #2.
Step #2: Is you want to quantify the RESULTS that you’re promising.
To do this, you’re gonna use what I call the “mattress method” - which I’ll explain
in a minute.
A few years ago, we were at Sleepy’s shopping for a mattress and I really wanted the Temperpedic.
Now, that runs about $3K which is waay more expensive than any other matress, and I was
having a tough time paying that much for a mattress.
Then the sales guy said something that really clicked. He reminded me that I spend over
⅓ of my life in bed, and that the quality of my sleep impacts my productivity, my health
and my good looks.
He said, “What’s it worth to you to sleep well over the next ten years?” Now I thought
to myself, Great effing question dude!
Well, since sleeping well essentially makes you richer, healthier, and prettier, then
I’d say a whole hell of a lot. All of a sudden, that $3k started to look like a steal.
The “mattress method” is when you deliberately translate the value of your product and service
into real life currencies like time, money, love, or health.
Ask yourself, What RESULT are you helping people achieve and how can you translate that
value into even more time, money, love or health?
For example, let’s say you’re selling a program that helps women stop fighting with
their husbands so a real result that you should be able to get is SAVED MARRIAGES.
That sounds like something you can’t put a price on. But actually, you can.
Let’s say you take women through your program in just two weeks.
Now, most couples when they go to therapy, spend an average of $200 per session and they
are usually in therapy for at least 6 months. So you could estimate that an alternative
to buying your program is spending over $4,000 and 6 months in therapy.
Or, a worse alternative: a $20,000 divorce. That’s the average it costs in this country
according to an organization called maritalstatus.
So girrrll... You could potentially be saving people $20K if you can help them save their
marriage.
Now, I’m not saying you put that breakdown in your sales pitch - but you could. Either
way, it’s a very effective strategy for figuring out what your offering is really
worth to your customer so you can price it accordingly.
As I said earlier, this is a complex topic that’s tough to cover in a wee little video.
But the these pricing strategies are solid as a rock. Now take that shirt off! and are
enough to get you started!
Thank you so much Irene that was a great question! I appreciate you asking it. Now here’s what
I want you to do NOW. Use the mattress method to take the results of what you get to people
and quantify it and show me what you got on the comments below right now! Do the work
right now! I know that you got it in you and I can’t wait to see it.
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