"Your price is too high."
How many times have you heard that, or how many times have you thought to yourself, "That's
what someone's going to say to me if I even think about starting a business or charging
what I really want to charge or charging what I think I'm worth"?
It's a very common and probably, I would say, the most common response that you get from
somebody who feels like they're not ready to invest in what you're offering, regardless
of what that is.
So I talk about this a lot.
I teach this inside of my program, the Authority Accelerator, all the time, and I wanted to
do a really deep dive training on this for you, because there really are only three responses
I've found in speaking to thousands of people over the last couple of years in building
my business to this question.
They may surprise you.
So we're going to get to those in just a second.
But first, if you're excited about this video, hit that like button.
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If you know somebody who could benefit from watching this, which I think there's a lot
of people who could, because this is such a struggle.
I struggled with this when I started my business in such a big way, and I'm so excited to give
you this information, because I think it's going to be really helpful for you in making
more money, bringing in more amazing clients, because that's what you deserve and should
have, and, overall, just creating more peace of mind inb your business.
All right.
So let's dive in.
So the first thing you want to talk about is ... Let's just do like a little pros and
cons list, because I love one of those, but sacrificing on your price versus charging
what you're worth.
So sacrificing on your price.
So let's say someone says to you, "Your prices are too high," and you're like, "Oh, okay,
well, I'm going to discount it then, and I'll give it to you for 50% off" or whatever it
may be.
The issue of doing that in a reactive way is that you allow the client to break your
boundaries immediately.
So what do you think they're going to do when they actually start working with you?
They're going to become those clients that are the largest pain in your ass you have
ever met.
They're going to be the people who ask for all the extras, ask for all your time, message
you when they shouldn't be messaging you, and just break every single one of your boundaries.
Again, I say this with love and from so much experience.
So the moment you let somebody break your boundaries right off the bat, they're going
to think that they can continue to do that, moving forward.
So sacrificing on your price breaks boundaries.
The other thing that it does is it devalues your worth and outcome.
If you guys can read this, bless.
I have the worst writing in the world, but hopefully you can read that and it makes sense.
But that's another thing, is that the moment you discount your price again just to get
somebody in the door, it means that you don't truly value what you do, and you don't see
the value in what you do, and you're not confident.
Therefore, they can smell that.
It's not saying that the potential client's bad, but, I mean, we all want a deal.
We all would like to pay less for what we're getting.
But what it does is it says, right off the bat, "Oh, I can of take advantage of the situation,
and I can take advantage of this person again, moving forward."
Here's the thing.
If you watched last week's video right here on how I started my business very lean and
for under $100, a big part of why I did that was because I wanted to make sure that I was
never in a vulnerable state, and not having money in the bank and having so much debt
puts you in a very vulnerable state.
Now, everybody's been there.
I've been there.
But it makes you more reactive when you're trying to get people in the door, when you're
trying to create revenue, when you're trying to close deals, because you're like, "I just
need the money."
So you feel very sort of panicked, and you're just going to take what you can get.
Taking what you can get means you're going to get bad clients.
Can I get an amen in the comments if you've ever been there?
So those are just a few of the reasons that sacrificing on your price is detrimental to
your business.
You might think, in the immediate terms, that it's going to bring in more people and you're
going to get an influx of clients.
But the thing is you might get that, but you're going to get more headache later.
So charging what you're worth, first and foremost, it combats all of these.
But secondly, it makes you premium choice.
It makes you this aspirational choice that people want to work with.
So they're not just working with any Jack or Jill off the street.
They want to work with you because you know your worth, and you are the premium option.
People will save up just to work with you.
When you're the premium, you become desirable.
It's kind of like dating.
I pretty much compare everything in business to dating, but it's kind of like dating.
The more readily available somebody is, the more clingy somebody is, generally the less
desirable they are to us.
So it's the very same thing in business.
You've got to stand your ground and know that you are worth what you're charging, and we're
going to talk about how to price what you're charging and your products and everything
in a second.
But when you understand that and you charge what you're worth and you have a premium price,
it gives you the option of being the premium choice that people really, really want to
work with, and you become more and more desirable.
It also makes you more profitable, which, again, combats the fact that you are not going
to be reacting to clients and just saying yes to clients because you need the money.
That is the worst and most vulnerable place to be as a business owner.
If you're charging what you're actually worth, you're charging a premium, you are the premium
choice, you're creating more profit in your business.
Therefore, you have the safety net, and you have what I like to call runway, which I'm
going to dive into deep in my next video, which is going to be all about the simple
steps to financial freedom.
But runway basically means that you have money in the bank for at least a few months.
So if, God forbid, something happens to your business or to you and things stop running,
you can still sustain your lifestyle and your business because you have that runway or that
money in the bank.
So makes you more profitable so you're less reactive to taking on bad clients.
So really important to understand those pieces of why sacrificing on price and charging your
worth are very different things.
If you're just reacting to clients and you're just trying to get people in the door, it's
going to create all of this.
Now, I made a few other notes, so I want to make sure that I'm hitting everything that
I want to.
But the piece that I wanted to add into this is that this is the long game.
This is the short game.
So you might get an influx of clients by sacrificing on your price.
But, like I said, in the long term, it's going to create more headaches for you.
This is the long game because you're going to create a business full of clients you love
and you're obsessed with, as opposed to having a business full of clients that give you a
heart attack because they stress you out so much.
So, again, long game versus short game.
If you want to be around for a long time and have a business that you like and doesn't
make you miserable, this is why charging what you're worth is really, really important.
Now, the only reason that you shouldn't be charging what you're worth is if your product
sucks.
If your product doesn't do what you say it does, if your program doesn't do what you
say it does, if your service doesn't do what you say it does and doesn't deliver the outcome,
then you shouldn't be charging anything at all.
That's also a short game to play.
So if you just make something to make money and you're not thinking about how it's going
to affect your clients, then you shouldn't be charging anything at all, and you are sacrificing
your integrity as a business owner by doing that.
So whatever you're making, it should be the best in the business.
If it's the best in the business, you have no problem charging your worth and being the
premium choice.
Okay?
Okay.
The final thing I want to say on this before we dive into pricing and how to price is that
when people know that they're working with the best and when they actually have skin
in the game, meaning that they have invested money into you and it's a decent amount of
money for them, they are going to be so much more committed to getting to the outcome that
your service, product, etc. provides, which is a win-win for both scenarios.
The client is going to get what they want.
So they're going to see success, and they're going to get the outcome that you're telling
them they will.
You're going to get an amazing testimonial and amazing social proof that you therefore
can use to continue to scale your business and share the results with other people, to
say, "Yes, I am the best," which is going to attract even more amazing clients to you.
So that's a big part of this, is charging what you're worth makes people committed.
If someone's buying a $19 e-book, do you think they're actually really committed to the outcome
of that e-book, or do you think it's more of a mass play versus "I'm actually going
to change your life with this"?
Okay?
If you have a $19 e-book, don't get mad at me, but I'm just saying ... and I've charged
all levels.
I know that the clients who actually have skin in the game get way better results because
they're serious and they take it seriously and they're focused.
So those are all the big things there that I wanted to go over.
Okay, so lqet's move on to the next part of this, which is ... I promise I'm going to
get to this question.
"Your price is too high."
How do you respond?
We're going to answer that a little bit later, but before we do, I wanted to explain to you
how I price and how we show our clients how to price.
Now, if you are interested in working with me, I put a link below where you can actually
apply.
If you're a coach or consultant or an expert and want to have an online business, there's
a link to apply for our Authority Accelerator program below.
So it's an application-only program.
But wanted to just tell you that.
So there it is.
So the value-based pricing system is what we use inside of the Authority Accelerator.
It's what we teach our clients to do, and it's a really effective way of pricing your
products and your services, because it no longer positions you as trading time for dollars,
and it no longer positions you as charging hourly, because that doesn't really serve
any benefit and, again, doesn't create the level of commitment that people need in order
to really create transformation.
Now, do you want to charge something astronomical just for the sake of it?
Absolutely not.
Again, I've charged all levels, so I know what I'm talking about here.
What I know to be true is that value-based pricing is the best model to actually land
on how to price your program and services.
So what is it?
Let me tell you.
So value-based pricing looks like this.
Cost plus income minus barrier equals value-based price.
What the heck does that mean?
So why this is so powerful is that you're looking at the cost to your client.
So you actually do the research, you speak to a lot of people who are in your ideal client
realm, and you get to know what it's costing them to not get the outcome that you're going
to provide through your paid program service offer.
That is mentally, financially, and emotionally.
Then you have your income.
So that's you as the business owner.
Realistically, to keep your business afloat, to pay your bills every month, what is your
income goal?
Let's just say it's 10K a month, and you then would set your goal.
If you have, let's say, a $2,000 program or offering or something like that, then you
would need to sell five of those.
That seems pretty manageable and doable, especially when you're creating an outcome that transforms
people's lives or businesses, which is what a good program or offer does.
It actually creates a transformation, because at the end of the day, people aren't paying
for time.
We all don't have enough time.
That's one of the biggest complaints you'll ever experience with anybody in your life,
is that "I never have enough time.
There's not enough time in the day.
I wish I had more than 24 hours."
So creating this really long program and thinking you can charge more because of it isn't actually
the case.
It's the outcome and the transformation you create that creates the value of it.
So people aren't paying for time.
People are paying for results and paying for transformations.
So what are your income goals?
What's the cost of the client, financially, emotionally, and mentally?
Then what's the barrier to entry?
So this is doing research in your market to see what's everyone else charging and making
sure that you understand what people are already paying for this solution.
Then you can kind of cross-reference that with what you're going to be charging.
So cost plus income minus barrier to entry equals the value-based price.
So before I dive into the responses to "Your price is too high," I wanted to give you an
example of this.
So let's just say that ... I actually have a client who does this, and I love her.
She helps women heal their acne using natural methods, and her results are insane.
She is amazing.
She was telling me the other day that there were some moms talking with one of her friends
across the country, and they were saying, "Oh my gosh, there's this celebrity skin specialist
that I've been following on YouTube."
That was her.
So she started to really build a name for herself, and we have talked a lot about pricing.
So the cost for her clients is actually very high, and when she's been speaking to clients,
they're saying things like, "I've missed a week of work because I'm so embarrassed about
my acne.
I'm paying for therapy because of the mental toll that it's taking on me.
I'm going for a facial every two weeks."
Those things add up.
That at least is almost $1,000 a month.
Now, her program does not cost $1,000.
It's actually slightly less.
So the value of her program is super high when you consider the cost that our clients
are experiencing by not having the solution.
Her program actually works, so the value of a program is so high to her clients, and her
income goals, she's able to hit them, because she's hit a price point that allows her to
not sell to many people, but have a good amount of clients that are manageable, that are paying
her a decent amount to get this amazing cost to them solved.
So no more therapy, no more missing a week of work, no more X, Y, and Z, the mental,
financial, emotional toll that it's taken.
So you could be selling business services.
You could be selling health and wellness.
You could be selling personal training, whatever it is, but there is a cost, and that's why
people want to buy a solution.
So you've got to figure out what that cost is and then base your price off of that and
your income goals and research what the barrier to entry is right now, meaning what is the
average cost in the marketplace for the solution that you're providing, and what should yours
be, based around that and the other two factors?
So that's value-based pricing.
All right.
Moving on to what you came here for, which is "Your price is too high."
I think you need to understand all of that before I get into the answer to this question
and the three responses to this question, the only three responses that I think you
really need.
So let's dive into those now.
Recap, compare, and fit.
So what do I mean by that?
Recap means, "Okay, let's go over what this is currently costing you," and this is something
that you would talk to the potential client about and say, "Okay, with where you're at
currently, tell me what's going on with your situation.
What is this currently costing you on a mental level, on an emotional level, on a financial
level?"
So with the example I gave earlier, it's close to $1,000 a month.
So recap that cost and make it really clear that that's the current cost.
You want to repeat it back to the person, because a lot of the objections around "Your
price is too high" comes from a place of scarcity, and it comes from a place of "Nothing else
has worked.
So why would this work for me?
I don't want to pay you, because nothing's worked."
So it's this internal monologue that's happening for the person who is objecting, because they've
lost all hope, and they really don't think that anything else is going to work, which
is totally fair once you get to that point.
But you need to help this person through to make the decision, because you know what you
have to offer is actually going to work for them.
"Do you want to recap?
Okay, so currently this is costing you, let's say, $1,000 a month.
It's costing you $1,000 a month."
Then the next thing you say is, "And when you say my price is too high, what are you
comparing that to?"
Then you want to kind of reiterate again, "Are you comparing that to the therapy sessions
that you're currently doing once a week that you don't feel like are progressing you?
Are you comparing that to the facials that you're spending a couple hundred dollars on
every two weeks that aren't helping with your acne problem?
Are you comparing that to maybe another program that you took that I'm unaware of?"
It kind of adds a level of clarity, of "What am I comparing this price to?
Why am I saying this is too high?
Is it because I'm comparing it to those things that have not worked for me?"
So, of course, a dollar would be too high, because nothing has worked.
So you then compare it and stop talking.
Let the person kind of let that sink in, because they really have to think about what are they
comparing it to?
Then the final thing is, if they still won't budge on it, this is the final thing that
I say.
It's something along the lines of, "Listen.
I don't want to take your money if you don't think this is going to work and if you're
not committed to the process of making it work, because this is not a magic pill.
It's not going to work overnight.
That's never what I'm going to guarantee, and I only want clients who are committed.
So I understand that you are committed and you really want this problem to be solved.
I'm prepared to help you with that, and I know I can, but I don't want to work with
you if you're not committed to that outcome as well.
I don't think it's beneficial to either side."
Then just stop talking and let them do it.
Let them go with it, and let it marinate, because, a lot of the time, people will say,
"No, I am committed, and I want to do this.
I'm just scared."
Then you can kind of talk through that.
But that's the process of getting people to the place where they realize, "Oh, no, it's
not too high.
It's just too high to compare to the things that I've done before that haven't worked.
That's why I've come to you, and you are going to actually help me with this.
So I am willing to pay you."
So that's my whole process of how to do this.
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Share this with someone who needs to see it, because I think it'll help a lot of people.
Like I said, if you want to apply to be part of our Authority Accelerator program, you
can click the link below this video.
It is for coaches, consultants, and experts who want to elevate their income, impact,
and authority online in an evergreen way using my help and working with my team.
So application-only.
Application is below.
If you want more info on all of this stuff, check out this video on how I started my business
for less than $100 and this video on the one thing that I needed to know in order to become
a millionaire.
Thanks for watching.
I'll see you in the next one.
Bye.