How to get over pricing issues

At a Mastermind meeting one of my good friends was sharing her concerns about setting her prices.

She wanted to charge what she was worth for her 1-1 work, but had mixed feelings as she was concerned that not everyone could afford the fee, and was also worried that people would judge her for charging “too much”.

“I know if I don’t charge enough that I end up overworking and getting stressed and sick – but I still feel like I need to make what I do available to everyone”.

We discussed the importance of charging enough for her business to be sustainable. Often clients only see the hourly rate and don’t realise that this also has to cover overheads like webhosting, paying staff and room hire. “Yes, yes I know that” she said “but some people just can’t afford that much and they really need what I’m offering, and some of them will resent that”.

Having been in the auto industry in my “past life” as an engineer I used cars as an analogy to show the importance of having a range of products at different prices

Early last century Henry Ford made cheap and very basic cars so that “everyone could afford them”. They were very basic, with no options – not even of different colours, but they worked and people loved it. But nowhere and never did he suggest banning or outlawing the luxury models.

Personally I don’t currently wish to spend quarter of a million on a Ferrari, but I don’t get angry that they are for sale. I don’t get upset that other people choose to spend this much.

I explained that it is all about choice. You can choose to buy a Citreugoet 101 or Nord Fuzzy, or you could choose to buy a Ferrari. Not everyone will choose the Ferrari, but isn’t it great that they exist?

We all know why a Ferrari costs more – because it costs more to make. There are more man hours in designing and crafting it. It uses more expensive materials, and it’s rare.

Just because not everyone can afford something doesn’t mean you shouldn’t offer it

Let each person decide what they can afford and have a range of products to match every purse and to match the amount each person chooses to invest in themselves.

Have a range of products and prices, from low investment, with less 1-1 time and access to you ranging up to full 1-1 VIP programmes.

It’s true some won’t choose to invest in a VIP programme, but to not offer them is to do a disservice to those who are waiting for them right now.

Here’s an example of the range of products and price levels that Psycademy offers

Have a look through and work out how you can apply this in your business…

1. Teleseminars, blog and newsletter articles – I aim to deliver great content that people can use right now – FREE!
2. Home study programmes – deeper content, information and transformation on a specific topic -  £197
3. Live Teleclass programmes – even more in-depth on a specific topic, deeper content, forum and access to me as we work through a specific issue – £297
4. Group programmes – small groups, live events and some 1-1 access to me, very intimate and individual support within a group is available – from £1,700 – £8,000 (dependent on length of programme)
5. VIP 1-1 programmes – as it says, you get 1-1 access to me, my private e-mail and direct line, private 1-1 calls and a VIP day – from £12,000 – £18,000

So take this list and see how you can apply this in your business. Not all of it will map across but some of it will. What can you offer right now that delivers value with little input from you? What should you REALLY be charging for 1-1 intensive support from you?

Although I don’t choose to spend my money of a Ferrari, I’m personally delighted that they exist

I’m delighted, too, that others buy them so that I can appreciate them. Me, I still love my 8 year old Landrover that can cope with all the Hampshire mud, and has space for all my training course gear (and my dog too).

As my friend and I finished discussing the existence of Ferraris, just to show us we were on the right track the universe sent us a perfect sign. We heard the rumble of a bass note in the exhaust first, and then round the corner came a scarlet Ferrari.

We laughed at the perfection of a universe that creates Ferraris.