Customers won't pay for abstract benefits like 'community' or 'support.' Frame your offer around tangible results they can achieve, such as 'master a skill in 3 hours instead of 30,' to justify a premium price.
Related Insights
In an age of abundant free content, sell your course by highlighting its curated path to a clear outcome. Emphasize saving users time and avoiding mistakes, which scattered free resources can't guarantee. This reframes the value from pure information to guided transformation.
Customers don't care about your P&L or that a competitor is a "side hustle." To justify a higher price, you must clearly communicate tangible benefits like better organization, time savings, or superior staff, which directly improve their experience.
Customers don't buy features, software, or services; they buy change. Your focus should be on selling the results and the transformed future state your solution provides. This shifts the conversation from a commodity to a high-value outcome.
Instead of focusing on the monetary cost of mentorship, reframe the value proposition. The client is already 'paying' with their time and stalled growth. The investment allows them to trade money, a renewable resource, for time, which is finite, by skipping years of painful, expensive mistakes.
To set your price, ask clients what they would do if your service didn't exist. Their answer, like hiring a full-time employee, reveals the 'replacement value.' This figure provides a concrete benchmark for your pricing and uncovers powerful marketing language.
Price objections don't stem from the buyer's ignorance, but from the seller's failure to establish clear economic value. Before revealing the cost, you must build a business case. If the prospect balks at the price, the fault lies with your value proposition, not their budget.
Don't wait for customers to ask about your value. Assume they view you and your competitors as commodities. It's your job to proactively explain why you're different and what additional value they receive for your price, effectively telling 'the rest of the story' beyond the basic product features.
When designing a premium service, prioritize reducing the time to value (latency). For affluent customers, time is more valuable than money. A promise to deliver the desired outcome in half the time is a far more persuasive selling point than a discount or greater magnitude of result.
Effective pricing is not just a number; it is a value story. The ultimate test is whether a customer can accurately pitch your product's pricing and value proposition to someone else. This reframes pricing from a simple number to a compelling narrative.
Don't overcomplicate defining value. The simplest and most accurate measure is whether a customer will exchange money for your solution. If they won't pay, your product is not valuable enough to them, regardless of its perceived benefits.