5 essential questions to help you price your next offer (or update the price of your existing ones!)

The key to pricing your offer is NOT about how much content you provide, or what other people are charging or what you THINK people will pay. Instead, you need to be super clear on what outcome you're delivering in each offer. In today's episode, I am sharing 5 questions to ask yourself when you're pricing your online course, 1:1 coaching, programs or memberships.

– Why clarifying the outcome will dictate the value (and therefore the pricing).
– Understanding the difficulty of achieving the outcome and how long it will take them to get there.
– The link between the outcome, how much support your clients need from you and the value this provides.
– How educating your audience can help them to re-evaluate what outcomes they are prioritising.
– How the value of your offer impacts your audience's bigger life picture.

Episodes referred to:
– Episode #644 – Ask Steph: Do you have to have live calls in your online course? Nope! (Here are 6 alternatives to coaching and Q&A calls) https://listen.stephtaylor.co/644b?sid=
– Episode #561 – What to do when people constantly tell you “I can't afford it” – without lowering your price https://listen.stephtaylor.co/561?sid=

 

Today we are talking about pricing, which is one of my favourite things to talk about because it's also one of the most challenging things in running an online business, and it's something that I know a lot of you, my listeners struggle with.

It's something that I have also found very challenging along my own journey. Here's the thing, the price point has nothing to do with how much content is in your offer or what everyone else in your industry is charging, or how much you think others would be willing to pay because what you think somebody would be willing to pay is almost never actually based in facts. It's based on your own views of money and what you would pay, or it is a little bit skewed by your feelings and your fears, and I've known this as well, comes up for me sometimes, like, is this good enough? 

So let's talk today when you are pricing your online course, one-on-one coaching programs, memberships, or any of your online offers, here are some questions that you can ask to make pricing feel a lot easier. 

 

Question #1: How difficult is the outcome to achieve?

Now, the very first thing you want to do before we get into these questions is to get really super clear on what outcome you are delivering in each of your offers.

What is that transformation that somebody's going to have when they finish the offer? Whether that is one-on-one coaching, whether that is a course, whatever it is, what are they going to have? That is the outcome that we're going to be referring to in this episode. 

So the first question to ask when you are pricing is, how difficult is the outcome to achieve? How difficult is the outcome that your offer delivers going to be for your ideal client to achieve? In general, lower ticket offers are going to deliver smaller, simpler outcomes, and higher ticket offers are going to deliver bigger, more challenging outcomes. Now you've got skin in the game. 

And the other reason why a higher price point for a more challenging outcome is suitable is that if that outcome is bigger and more challenging to achieve, then somebody's likely going to need more support and more handholding to achieve it.

This means more of your time is going to go into delivering the offer, and your price point needs to reflect that. 

 

Question #2: How long will it take for them to achieve the outcome?

Now, this is a tricky one because the longer it's going to take somebody to achieve the outcome, the higher the price point. Typically, because you're asking them to stay committed over a longer period of time, which usually means that, well, we need them to have skin in the game again, we need that higher level of commitment.

But it also means that you, as the mentor, need to be there delivering more support, more accountability, and more handholding over a longer period of time. But this is where it gets tricky because it doesn't mean that if you turn your eight-week program into a 12-week one, you can charge more for it. That's not how it works, because if you can get someone the desired outcome quicker, it's going to be a more valuable of an offer, right?

So the quicker you can get someone that desired outcome, the more valuable the offer will be. But the longer it's going to take somebody to achieve the outcome, the higher the price point needs to be to justify the extra support. 

 

Question #3: How much support do they need to achieve the outcome?

Do they need one-on-one coaching? Do they need access to ask you questions? Do they need access to each other in the group to have that accountability? Do they need small group calls for coaching?

So what kind of support do they need and how much will they need? And this will depend on the difficulty of the outcome and how long it takes to achieve the outcome. But it's also going to really depend on what's going on in their minds. Do they need to make some big shifts in behaviour? Is the outcome quite a scary one to achieve? Do they have to overcome some fears to get there? Do they have to shift their identity? 

 

Question #4: How important is the outcome to them?

How much do they value that outcome? Is it something that is a massive priority to them right now, or is it something that they only loosely care about and it's not a huge issue in their lives? We spend money on the things that we value and the things that we prioritise. 

And if it's not a priority for your ideal client right now, then that's okay because you can still use messaging, positioning your content to shift it up their priority ladder a little bit, right? You can still use that to prioritise it in a way that they'll pay a little bit more for it. 

 

Question #5: How will achieving the outcome impact their broader life? 

So learning how to make the perfect smoothie, that in itself is not going to have a big impact on someone's life, but it might help them to make healthier breakfast choices, which could actually have a big impact.

So when you are thinking about pricing, ask yourself, what else will achieving this outcome make possible for my ideal client? 

Is it about creating a repeatable Launch process that brings in cash injections reliably a few times a year and that then has the ripple effect of creating more freedom in their lives?

 

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