It’s a question so many business owners struggle to answer…
“How much do you charge?”
Pricing can be tricky. Should you position yourself as the high-end option in your market… or offer lower prices to try and win more customers?
A lot of people will tell you “it depends”, but I disagree. I believe there IS a best pricing strategy for you.
What’s more, this strategy works regardless of your market, where you live, or how long you’ve been in business.
thanks for share this content, I’m Interested in your Mastermind if its possible to get in please let me know. thanks rafael
I think this is one of your best videos! So much value in here — not only about pricing, but also about entrepreneur psychology, ideal prospects, marketing, and positioning. I also loved your delivery style. 😁 🌟
Thank You for reminding about ”move the freeline”.
And I see that I use that in my Facebook group. Thanks again 🙏🏼🙌🙏🏼
Jody L. Miller-Young
Jeff, always love not only the great info you share, and this is a very helpful video at the right time for me, but how you deliver your info. I trust you. Thank you for sharing this.
Question: This sounds reasonable and ethical in theory. What do you do Jeff when people sell comparable value at low price just to build a list? Wouldn’t this change the perception of our product because obviously we will not be the only ones that show up when customer search for their need? If we have not yet built significant authority, how do we deal with this cheap price game? What do you answer customer who do price comparison for knowledge based product like an e-course? How do you create a unique value proposition for your people in such “noisy” environment? It seems the only uniqueness is you because there can be only 1 you and no one can copy that. The challenge thou is how to build authority because unless i do that no one will buy from me. I can’t think of any way other than identifying the niche within the niche and finding the person who is looking for closest match with what your offer.
‘How much should you charge’. Thanks Jeff this is really good advice. I’ve been talking to a group of Nutrition coaches I belong to about pricing recently and you’re video is perfect to share with them. X
Samuel J Harkous
Thanks for the great advice, Jeff!
Hello Jeff, I appreciate your input.
Since 40 years I am very successful in my niche as a lawyer for export controls, and my success rate in those years has been 80%.
One typical situation is the following:
A client is calling me, pretending not to be in panic.
He has an export contract to be shipped within 6 weeks, and every expert tells him it can’t be done: “Scrap your goods, and forget about it!”
Now he comes to me as last resort. His contract can be anywhere between $500,000 and $400Million. He has already manufactured the goods, and cannot use them anywhere else. I not only provide the solution now – icluding getting his shipments through customs – but also provide an expertise which will hold him harmless if within the next 10 years a State Attorney or Judge may challenge my position
I have a tendency for the lower end to charge 10% of his turnover upfront, and pay him back half of it when I don’t succeed.
Would you agree that this is fair pricing if no else can do it? My work is no risk for him, as I never bended the law in the last 40 years.
Now, what about the high end contracts: Charging $10Mio for a contract of $100Mio?
What do you think? What would you do?
Super helpful video! Thanks a lot, Jeff!
I bought and read your second book and I absolutely loved it! I highly recommend it to everybody!
Pricing is always such a headache, especially for those of us who start out and launch our products. I’m in the veganism niche and I find it very difficult to price products and offers.
As you say, pricing depends on the market.
Interesting comments on pricing but I was a little surprised Jeff didn’t mention a very important thing I noticed in my years of being in business: the more you charge, the better class of clients you attract.
Sell your training for $50 or $5,000 and your problems, time and effort will be with the $50 client, guaranteed! The costlier client simply respects you and your service more. I’ve personally seen this many times.
Great video on pricing Jeff. I’m currently struggling to set a price on my beginner guitar lessons video course. Any thoughts, I know you play guitar.
The more you give it away, the more they will pay you for it.
Jeff, it’s uncanny how often you show up with the right message at the exact right time. This video helped me realize there is a gap my value delivery/pricing model that will help me serve more people that need to transition to a higher level of transformation in both their personal and professional lives. Thanks!
Gary V Carter
What do you say about this Jeff? https://bit.ly/2U1trI2
Jeff, I so appreciate your information and authenticity! Your accessible presentation style makes the value you deliver even more powerful. Thank you for nudging me to think about my market and the the value I provide, and to price my offering at the higher end based on the transformation that I provide.
Great video. Just purchased Launch! Looking forward to reading this. Often have the pricing conversation with young start-up businesses I work with. Love the Walmart pricing analogy.
This was very helpful and made a lot of sense. Thanks for all your efforts to help us.
I am a children’s book author. I would like to know abut setting prices for these children’s picture books
THE BEST AND EVIDENCE-PROVEN WAY to decide on the BEST PRICE to charge for your product or service is to ask prospects what they would pay for it. Ask via an interview, questionnaire, perhaps zoom, though it’s best to ask face-to-face (in person). You need to ask a large enough sample and then overlay their responses onto your file. You must show or demonstrate or send the product or service you offer to your prospects, then ask.
Ask them the most they would pay, ask them the least they would pay before thinking it is somehow too cheap. Ask them what would be too expensive. Capture their demographics (age, education, geography, which features they prefer most, etc.) because one prospect’s interests and “willingness to pay” can be very different than another prospect’s.
For example, men 25-49, college educated, etc. will pay more for grooming products than men 50+ for many reasons. Women 25-49 college educated, etc. will pay more than men 25-49.
Before you know it you will discover 8-10 customer types (personas) that will happily buy from you BECAUSE you can offer each persona type a product they like at THE price their fellow, like-minded prospects said they are willing to pay. No sense guessing wrong when you can just ask them!
Jeff, I always appreciate what you share. I feel that most people are afraid to charge more because they lack the confidence to do so. They are afraid no one will pay for their product. It takes courage, which you promote (thank you), to step up and charge real prices, prices that allow us to live better while helping others do the same. Thanks again!