How To Price Your Products

You're listening to the PT Profit podcast, episode number 74. Today we're talking all about how to price your products and services. Are you ready? Let's get started.

Hi, I'm Beverly Simpson, former fitness manager turned online personal training business owner. And this podcast is where smart fitness professionals, including trainers and clinicians, discover how to increase client performance and movement, package and position their products and services and get out of their own way so that they can increase their revenue to live a life that they love without sleazy sales. Welcome to the PT Profit Podcast.

What's up coach? And welcome back to another episode of the PT Profit Podcast. I'm your host, Beverly Simpson, and if you're just joining me for the first time, welcome. Thank you so much for pressing play today. It's just going to be you and me hanging out and we're going to be talking all about how to price your products and services. So currently you're listening to this when I am in Sedona, Arizona, which I've never been to before and I'm super excited about it. But this means that I'm hanging out here on a weekend doing some recording. So I really make a huge effort to make make sure I don't work on the weekends, but during the weeks that I'm traveling I do batch my content and make sure that I'm all set up for a week that I normally would be actively working and actively engaging. And so sometimes I need to catch up on the weekends like I am this weekend. And we're moving into a launch season for for be Simpsons and Fitness, which I can't believe it. I can't believe that we're already here. I can't believe it's been a 90 day cycle already. But I'm super pumped for simple selling series this this go around because we are changing it up. So that's part of what I've been doing this weekend is just really doubling down on my messaging and taking a look at the content, how I want it to be delivered. And I am so excited because this will be the first time that I've ever done a prerecorded tr and the reason why I'm doing this is because it's going to give you and me the opportunity to consume the content and then do some coaching. Rubber meets the road. And we're going to be able to uncover some questions and really do some special workshops during our time together. Instead of me having to deliver the content as well as connecting, this time you get to consume the content on your own. Time and we will just spend our time connecting. So I'm really, really excited for it. But I'm also actively putting this content together. So that's part of the reason why I have been working. And so one of the things that I wanted to do is I wanted to do a no pitch business boot camp training. My assistant and I, we connected, we got it all, the basics worked out and ready to go, but the truth was that I just couldn't get it done fast enough. In addition to also doing Simple Selling series, it was just too much on my plate. It was one of the things I needed to let go. However, the content in the business boot camp is really important and so I decided to bring it to the podcast instead. We're going to be going for the next couple of marketing podcasts. We're going to be uncovering some of the common misconceptions, common traps that fitness professionals or health and wellness professionals get into before joining simple selling. And simple selling is really going to help you take your business to increase your impact and generate more revenue. And it's really going to help you get to the next level. But before we even get there, there are some myths we need to bust through. So the next couple of marketing episodes are all are all going to be around the common misconceptions and the things that I would tell myself if I was starting my business today right now. So let's just go ahead and dive it. One of the things that comes up over and over and over again is how to price your products and services. Because in the fitness industry it can be a very complicated conversation because so many people have varying opinions about it. On the one hand, you'll hear people and well meaning business coaches tell you all the time you need to do high ticket, high ticket, high ticket, high ticket and charge $1,000 a month. And you need to do high ticket, high ticket, high ticket. However, when you really look at that high tick model, and a client of mine and I were talking about it just this last week, is that in order to generate the revenue that you really want to make on a consistent basis, you could potentially only need anywhere from 16 to 20 clients on a consistent basis to generate and make the impact that you want to make. And in theory, when you're looking at 16 people in an 8 billion person world, that's a rather small impact. And it's not that it's bad, it's just a small impact. And oftentimes it can exclude a majority of people who may not be able to have access to that type of high ticket and high level coaching. And so then the question becomes, how can I make my products and services more accessible to the masses without killing myself in time? Or maybe not. You're literally okay with serving 16 to 20 people a year and then that's it. And serving 16 to 20 people a year, by the way, is 100% okay. There's absolutely nothing wrong with that business model, if that's what you want to do. There is nothing that says you need to have a low ticket offer or an accessible offer or however you want to phrase it. There's nothing that says that I'm just a master marketer. And so if I were to make a case for a low ticket offer, that's one of the things I would say I would talk about the accessibility of a low ticket offer, in my opinion. Because here is the truth. When it comes to price, there are two truths. Number one, price is subjective. What is expensive to me is not expensive to others. What is not expensive to me might be expensive to others. So if you're asking yourself, is this too expensive? Then I'm going to encourage you to really ask a better question. Which is expensive compared to what? So I even said in this episode, a low ticket offer to make it more accessible. But accessible to who? Because the truth of the matter is that price is subjective. While $27 or $8 might be nothing to me, that could be considered expensive to a client. So the truth of the matter is that price is subjective. The second thing I'm going to say about price is that price is marketing. I'm going to say that again because it's just so important. Price is marketing. So what that means, coach, is that if you think that your products and services aren't selling because of the price, that's not really what's happening. It's easy for clients to say to you, oh, that's too expensive. They make the decision on price. But what they're really evaluating is the at the value, the communicated value compared to the asking investment. So price is marketing. And I used to say to myself, yes, I get that, but no one wants to spend $1,000 on a Butterfinger. But then my coach and I were talking about this and we started diving deeper and we started to really think about that and really apart that belief. And it was funny because I came up with a counter example where in New York there is a restaurant called Serendipity that people have traveled all over the world to try this $1,000 dessert. It's literally a $1,000 ice cream with gold flakes on it. And people come all over the world pre pandemic to try this dessert and have the experience. So while I said no one wants to spend $1,000 on a Butterfinger, a better question to ask yourself is, what goes into a $1,000 Butterfinger dessert? Because the truth of the matter is that there is a customer for every price point. And no matter what the price point is, whether it is free, whether it is time that you're asking for, or an email address that you're asking for, $27 or $2,700 or $2 million, the effort is the same. And the effort I'm talking specifically about the com, the communication of the value. That effort is the same. You still have to sell your free session. You still have to sell your free PDF, you still have to sell your product for $27 and your product for $2,700. The effort is the same. And by selling, all I mean is making a case for your perspective. And so when you can operate from that place, here is how I go about pricing my products. The first thing that I want to know when I'm working with a client is what is your desired impact goal? What is the revenue that you want to make on a yearly basis, on a monthly basis? What is the profit margin that you're looking at? I mean, this is a whole nother com profit margin is a whole nother conversation. But let's just start with the impact goals. Okay? If you know that you want to make six figures and you want to get to those consistent 10k months, so we'll even call it that's above, you know, that's above six figures. I think it's 120, right? 100, yeah, 120K. But okay, given taxes. So you end up maybe taking home like a serious, you know, 100k salary. Okay. And you're looking to make those 10k months, we need to reverse engineer it. And I know that some people, based on their own, you know, their personalities, they don't really like to do reverse engineering. So I get it. I am super. I'm a person that really loves reverse engineering. But I'll just say that at the end of the day, if you want to make 10k a month, it comes down to math and it comes down to reverse engineering. You're either going to serve 10 clients at 1k a month, 20 clients at 500amonth, or maybe you have a lower ticket offer and you have a 27amonth product and you have to go for the volume and then may, or maybe you have to to, or maybe you're already tapped out for one on one and you're looking for a lower ticket volume stream. So it really just comes down to math and really breaking apart what you want your life to look like, what you want your service to look like, what you want your business to look like, and then reverse engineering that and then asking yourself what goes into a 1k offer, what goes into a service $27 offer, and then determining how much time and then looking and seeing how many people need to purchase said offer. So now so many business coaches, especially when they're starting out, they really push the high ticket. And that is because, like I said earlier in this episode, that if you are want to make 10k a month and you're serving 10 people at 1k a month versus selling your PDF or selling your, you know, $27 membership, right, if we do that math, you need to have 370 people in your membership. And so the reason why people really go after this high ticket concept first is two reasons. Number one, if you're brand new to the industry and you're putting in your reps, you're getting some experience, some serving people. Or number two, if the effort is the same, because it is, if the effort is the same to get a 1k client as it as it is to get someone to purchase a $27 product, then literally you need to get 10 of the 1k people or 370 of the $27 people. So it ends up becoming a matter of effort and how much time it takes. So it really becomes a matter of effort. So in my experience, one difference that I often see between someone making a decision for a 1k offer or a $27 offer is just how fast it takes them to go through that ladder of believability, that ladder of believing in you, believing in your offer, believing in themselves, and believing that they need it now. And oftentimes, the journey to $27 is a lot different than the journey to 1K. And so the question becomes, you know, how are you working in your capacity? Do you have the time and space to put the amount of effort in to get 370 sales or to get those 10 clients, because time is one of our most valuable resources and we can't get that back. So that's the first question that I would ask myself. What are my impact goals and where am I in terms of cash flow? What do I need right at this moment in order to pay My bills, where are my efforts best going to serve me? So it really depends on where you are inside of your business. So if it were me and I was desperate for cash flow, I would be focusing on servicing my high ticket one on one clients because I could get 10 to pay 1 to 2k a month and then work on my other scalable offers if that's what I wanted in my business. It really depends on what you want and what you're looking for in your business. And the best news is that there are no wrong answers. You can do whatever you want. The second thing that I'm looking at is what goes in to the offer that shows my client that it's 10 times worth the asking investment. So let me say that a different way. If I knew that I wanted to to ask for an $1,000 a month investment, I'm asking myself what goes into this offer to demonstrate its $10,000 value. If you're asking for $1,000, you, you are solving a $10,000 problem. Now the reason why I don't lead with this is because so many people, they'll get into imposter syndrome feelings of I'm not good enough or feeling like I'm not ready yet, I can't serve that. And they fail to recognize that you are already ahead of the majority of people, at least in the United States, meaning that what is easy to you is not easy to most. And I can't remember what the statistics are at some point I think it was 80%, 76%. I can't remember the exact statistic in 2021. But there are a majority of people in the United States that are battling severe health risks. And you as a health professional get to be in the preventative care. And so while you may or may not recognize it, you are actually saving them a lot of money by working with them. But we don't recognize that or think about that because what is easy to us is not easy to most. However, I am a firm believer in over delivering. And so I'm going to put together a $10,000, I'm going to solve a $10,000 problem and charge $1,000. That is part of what makes it irresistible. So for me and in my business, I know that working with me for are going to double down on your revenue and you have all the tools in front of you to generate multiple six figures and you get access to those tools forever. So for me and in my business, I know that the ROI on the investment will have a double, a triple ROI if You actually applied the tools and ask for support because these are the tools that have helped me and my clients get to multiple six figures. And I'm so certain, in fact these are the same tools that are going to get us all to seven. So I have no problem communicating that the value is 10 times worth the asking investment. And so for you, putting together your offers and the price for your products and services, you want to be asking yourself the same question. And remember, you're in preventative care. You help somebody who's pre diabetic or you help somebody who's under extreme massive mental stress, the impact on their life is going to return back to them 10 times once they have the freedom to feel good in their bodies. And then the third thing I'll say to you when you're determining the price of your products and services is work with the end in mind. You don't have to have all the offers fleshed out ready to go. In fact, my offers change all the time. Every time I run PT Profit formula, I discover something new that I want to do. So I give myself the freedom to change how I want things to be delivered. However, I work with the end in mind. That's why knowing where my goal is, knowing what I'm trying to achieve, and reverse engineering it is so important to me. Because that will help you prevent burnout. Because the last thing I want you to do is to hustle and grind into the ground and constantly beg and chase clients when you can have a vision for where you're going and work backwards from there. So just a final question to really ask yourself when you're deciding on the price, because the price is marketing. So I'm gonna leave you two final questions to ask yourself. What is the level of accessibility that you want to have? Because typically the higher ticket, the more the less accessible it can be to your ideal client. And also it will mean more accessibility to you, typically, because time is our most valuable resource. So when you value your time over money, you'll have plenty of both. Because the more accessibility and the more of the time that you get that your client gets. Because remember, you can't get time back then often the higher the asking investment is. So the question becomes, do you want to serve your people in a more intimate manner or do you want to have that scalable option where you can serve the masses? And just so you know, there's no good or right or wrong or best answer, it's about what works best for you and what you want and what is going to fulfill you. Okay friends, hope that helps and I will catch you on the next episode.

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List of clients ready for your services.

Thank you so much for listening and we'll see you on the next episode.