How to Price Your Products and Services

You're listening to the PT Profit podcast, episode number 239. Today, I'm walking you through how to pick your price for 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 product, 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? Thank you so much for pushing Play on another episode of the PT Profit Podcast. I'm your host, Beverly Simpson. And if this is the first time you're hanging out around here today, welcome. Thank you so much for pushing play. Let's go ahead and dive right in. So today we're talking about how to price your products and services. It's one of the biggest questions that I get asked inside of my accelerator program inside of my DMs. So chances are, if they have that question, so do you. Okay, so before we even dive in, we're going to just break down the three common mistakes I often see people do when it comes to making their pricing decisions. Number one is they'll go and look at in the market space and say, oh, what is Sally doing? What is she charging? And then they charge a couple dollars less because they think, oh, I'm new to the space, so I better just be the cheaper option. And that's pricing on commodity, which is the fastest race to the bottom. And one of the worst things that you can do because you're basing your business model, basing your pricing on someone else, and you don't even know if that's profitable. So that's mistake number one. Mistake number two is that you often make decisions based on your wallet instead of your clients or wallet. And what that means is you're depending on the market that you're trying to get into. If, especially if it is high volume, high pre, like a premium offer, and you tell Beyonce, oh, it's only going to be $10, that market. And you've now said to, to be honest of the world, oh, if it's too cheap, it might be too good to be true and therefore I'm not going to do it, or you're telling the Beyonce of the world, this is not that valuable. You don't need to show up for yourself. And you are actually doing a disservice to your client, if there's not enough of an emotional investment on their part to say yes to themselves, you end up feeling like, oh, I'm just trying to convince them to show up. You're running yourself into the ground. Nobody wins. And then the third mistake people make when it comes to pricing their products and services is they don't value what it is they bring to the market space. So what that means is just like when your clients don't count bite licks tastes because they think, oh, I didn't sit down and eat a meal, that doesn't matter, that doesn't count, you're technically doing the same thing every time you say, oh, well, it's not that big of a deal, I'm just going to do this check in real quick or oh, it's easy for me, so it shouldn't matter. But it's. And what happens is you're not taking into account the fact that what is easy for you is not easy for your clients. So here's what we need to do when we're thinking about pricing. Number one, you need to understand what is the business model that you want to be in? What is the market? Are you wanting to be in the low ticket but high volume market space? That doesn't mean low ticket. Low investment means low value. It just means that we are going to go for the volume of people. The Walmart model, the Netflix model, the Disney plus model does that really well. If you want to be in that market space, great. Do you want to be a me in the Neiman Marcus market space where you have premium products for premium clients? Can you be in multiple places? Sure, you can. Just don't make the mistake that a lot of people make when they're trying to be in a premium market space, but then they're too cheap and then they lower their price because they're making decisions based on their wallet. Or they lower the price because they're making the decision of, oh, Sally's in this market space, this is her price. I'm just going to be the cheaper option. We do not want to make praise the differentiating factor. What makes a differentiating factor is you, your reason why, the experience, and then your process that will be proven. So when we understand and know what the market is that we're trying to get into, then we can start coming up with what's the price, what's the investment? Because there needs to be an emotional investment on the line for your client in order for your client to show up for themselves. The price is not about you. It's an opportunity for your client to say yes to themselves. So how do you pick the price? Well, if you go back to last week's episode, you're going to hear how people determine value. And so when you're picking the price, we want to make sure that we're solving big problems and that the outcome is 10 times worth the asking investment measured against the cost of not getting started. Now people will say to me, well, Beverly, it's easy for you because you can tangibilize an ROI because you build businesses. So it's easy for you to say invest 10 and then 10x your investment. It's easy. So how do you do that in the health and wellness space? How do you do that? B2C business to consumer? Well, there's a couple of ways that you're going to want to do that in your messaging because we need to communicate that your offer is the best, fastest way to get to your, your client, the result that they want and do it and remove resistance around resources, time, energy and effort. And when you can do that, they become a customer. Time, energy, effort and money. Remove resistance around those four resources. Okay? So that when they believe that they need it now, they'll say yes instead of not yet. So what you need to really be thinking about when it comes to how do we make the intangible more tangible is we want to, especially if we're wanting to go into premium market, is how can you tangibilize the outcomes? How can you make those outcomes transcend into a bigger purpose? So for example, what I mean by that is what when they get more energy, when they're more rested, when they are calmer with their kids, how can that translate into monetary priceless things they can't get back? Not yelling at your kids, that's one of the biggest things that you can gift, that you can give to a parent, giving parent full night's rest so that they wake up more confident, feeling better inside of their, their clothes, inside of their skin. That is one of the biggest priceless gifts you can give to a human being. And if they could figure out it, figure it out on their own, don't you think they would have already done that by now? This is exactly how you will start to communicate that your, what you bring to them is going to transcend into other areas of their life. Otherwise, what's at stake and how expensive, what's the cost, how expensive is it going to be for them to not get this taken care of? And this doesn't have to be like your medical bills, right? Having low self esteem, that's expensive and people aren't thinking about it in that way. This is part of why your communication, your messaging is so important because most people are looking at things through this really small lens and we need to push out the context of their box. And your messaging is what is going to be, what does that. So once you're clear on what market you want to be in, once you're clear on the value that your products and services are going to be at, then you can make sure that your investment, the investment that is required, is 10 times worth that, if not more, but at least 10 times. So for example, if you want to charge $3,000 for a health and wellness program, you're solving a $30,000 problem and you're going to save them time and money. You're going to make it more convenient so that they can then use more of their resources to do whatever it is that they want. Time is infinitely more valuable than money. Time you can never get back, money we can always find, make, attract, time we can never get back. So when you can save your client more time, you're increasing the value. And then lastly, you want to remember that what's easy for you is not easy for your client. So if you're not valuing what it is that you bring to your market space, they're not investing in your time, they're not investing in your service, they're investing in the speed of implementation to get to the outcome. So when you can really, when you are convicted in knowing that your process is proven and that it works and that it will take what it takes, until it takes, then you win, then you'll be able to confidently share the investment of that program. So this episode helps you please be sure to screenshot it, share it on your socials. It helps me get the message out to more people so that we can raise the industry standard and help more professionals just like you. And if you want to hear more about how specifically we can help you price your products and services, send me a DM over on Instagram. I'll be happy to connect with you. Thanks so much. I'll catch you on the next episode.

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