#42 - How to price your offers so the sell easily (and make profit too!)

There's a lot more to it and it's not just about saying, hey, I'm awesome, I'm going to charge $10,000. There's actually a lot of steps behind that. There's a lot of strategies behind that behind which are going to help you to craft a price.

This is the Doing It Online podcast with your Host, serial entrepreneur, 6 and 7 figure funnel strategist and super nerd Kate McKibben, where every week we're here talking nerdy and sharing the things that actually work to help you do what you do online, but easier and with a ton more profit too. Are you ready? Let's do it.

Hey. Hey everybody and welcome to episode 42 of the Doing It Online podcast. I'm your host, Kate McKibben from HelloFunnels Co and today I want to dive into one of my favorite topics. But I know a topic that can make some people feel a little icky and that is let's talk about pricing. Let's talk about how to price your offers. So not only do they sell with ease, but also so they are profitable. Because an offer a price, it needs to be both. Otherwise you're going to run into oh so many problems. So as some of you guys would have seen, we just kicked off our six figure school workshop this week. So excited about running this workshop. The, you know, we put so, so much into it. And one of the things we were talking about, which was when this goes live will be yesterday, was all really about diving into this topic of nailing the pricing. And I do. As I said, I feel like it is so, so important and I wanted to share it here with you guys too. But before I do that, I want to share something else really exciting with you guys because right now applications are open to our totally overhauled, totally, even more amazing if that's possible, ecourse Empire program. And right now you have a chance to not just join myself and my team of experts as we guide you to creating your own six or even seven figure e course empire. But you are able to get a second six months of access to our amazing support, which includes two hot seat calls every single week with either myself or someone on my team. So there's a Facebook ads expert, a copywriter, designer, social media experts, mindset experts. You have, you know, two, we have two calls a week at different times in different time zones that you can jump in, get your questions answered, get the support that you need, as well as our twice yearly virtual retreats. So you get an extra six months of Access to all of that right now, totally for free, if you are accepted into our and join our Ecourse Empire program. So it is application only, guys, but the applications are open now, so just head to ecoursempire.com and apply ASAP before all the spots are gone. Now hit pause, go do that, and then come on back. And we're going to jump into, as I said, talking all about pricing. So it's not just a matter of having good or bad money beliefs. And sorry, guys, I have to apologize if I sound a little nasally. I am. We had rather disgusting, snotty cold come through our house and everybody got it and we all still seem to have it weeks later. So yes, if I, if I am channeling someone slightly more nasal than usual, apologies. Anyway, back, as I was saying, when it comes to pricing and having a good profit price or having a price that works well and sells easily, I know a lot of people kind of go down that it's all about having good belief in yourself, about not having money blocks, things like that. Like, you need to know your stand in your power and all of these wonderful things, which partly are true, but there's a lot more to it. And it's not just about saying, hey, I'm awesome, I'm going to charge $10,000. There's actually a lot of steps behind that. There's a lot of strategies behind that behind which are going to help you to craft a price and a pricing strategy that, as I said, is going to make it much, much easier to sell your offers. So it's not going to feel like a struggle. And also it's going to mean that those offers are actually profitable as well, which means that you end up with more money in the bank, more money to reinvest back into your business. You're able to grow your business, bring on staff, give your clients better results and more quality attention because you have the systems in place to support you. But all of that requires that your price is profitable. How do we do that? How do we do that? So basically it comes down to finding really the sweet spot between. And there's five things that really need to be factored in to when you're choosing your pricing. And it's that sweet spot where they all, all of these things kind of overlap. So the first one is, the first couple are actually really down to you and how you want to run your business. But the first one is how do you want to deliver this program? Because your pricing needs to be in line with that and it needs to Reflect that. So if you really love working one on one with people, going deep with them, then you need to have a price that's going to be a more of a premium price. Because of course, your own. It has to, you know, cover off and, and correctly, you know, the value exchange for all the time and energy and heart that you're putting into it has to be equal to what you're wanting to do. But also it has to. Your pricing has to reflect the fact that there's only gonna be a certain number of spots and there's only gonna be a certain number of people that you can actually take on and deliver at. That sort of, that way of delivering it and that really high touch one on one kind of style. If you're on the other end of the spectrum and you're like, hey, you know, I'm much more hands off. I'm super introverted. I like to be, you know, I like to show up, do some group calls a few times a month or whatever, once a week or once a month or however you want to do it. I want to just have a Facebook group and it'd be pretty sort of hands off. Then your pricing needs to reflect that as well. So that's the first thing think about. You know, and this is one of the things we always go through inside our programs is we always, the first thing we always do is get people to stop and think about what is this business that you actually want. There is important decisions that need to be made here. How do you want to deliver it? The price kind of has to match and has to work with that. The second thing is how do you want to sell it? And again, this is something I think a lot of people don't think about. They just go and they look around at what other people are pricing their thing at and they're like, okay, that's how I'm going to price it. But again, the way that you want to sell your offer will have some impact on how you price it because certain price points work best with certain different methods of selling. So if you hate doing sales calls, for example, then you're probably not going to want to have a $10,000 offer because you're going to most likely not always. We do have an application funnel that we go through inside Ecourse Empire that has been, you know, that has worked for people up to about $10,000. But that's, that's kind of hitting this limits there. But for most people, it's going to be a sales call. If you've got a $10,000 offer. And if you don't like doing sales calls, don't create a product that requires you to do sales calls. So I want to give you a really good example of this, guys. So one of my clients, when we first started working together, they were kind of stuck in this place. And I could see it. It was like the. What they were saying they wanted and the actions that they were taking, they were not in alignment. They. The way that they'd structured their offer, the way that they were selling it, they were not in alignment what they actually wanted. So they were at a point in their business. They'd been working for years. They'd been really over the Last sort of 12, 18 months had been like in a real season of hustle. And they were tired, like they'd work. They were just felt like they were pushing, pushing, pushing all the time. Things weren't moving. It was still staying hard. And they would. They were tired, they wanted. They needed a break. So really what. In that. That point of their lives, what they wanted was they wanted more ease, they needed more space. They really needed to be able to take their foot off the pedal a bit, recharge. They needed to. So they needed an offer that was going to allow them to do that, an offer that was going to be able to be delivered and to be sold in a way that wasn't so, you know, reliant on their time. And currently the offer that they had was, I think it was about $5,000, required a sales call to convert. And they were saying that these sales calls weren't even converting. But I was looking at it going, you know what, it's no wonder, because you actually don't want to sell this thing. Because if you think about it, what they wanted was more time, more space, more ease. The offer that they had was really high touch as well. So I didn't say that before. It was, you know, it's really high touch. One on one program, which if they had the brain space and if they were feeling recharged and stuff like that, they probably would enjoy to deliver. But at that point in their business and their life, it was going to actually deplete them to be delivering that. So they were going out there trying to sell a thing that to be able to sell in the first place took up a lot of time, a lot of energy. Because sales calls, they didn't enjoy them, they weren't converting very well. So they're having to do a lot of them. And then when they actually did convert, they were like groaning internally because they didn't want to then have to go and commit to this high touch offer. So this is what I mean, guys like you, you have to create your offers and structure your offers. Like you get to design all this stuff, but you need to sit down and go, what do I want? What do I need? And sometimes it's what do I need now or for the next, like, you know, 12 months, 24 months. And other times it's like going, what? Where do I want to end up? And making sure that you're making those small adjustments to get you there. So another example is when I found out I was pregnant, I was like, okay, well you know, I still want to be able to really serve and to really create great experiences for my clients. How can I structure my offers to be able to do that? Like, what team do I need to bring on? What price points do I need to do? I'm not going to be able to do and I don't want to have to do sales calls. So how does that impact on what we create and how we can price that? Like it's all, it's this little dance, it's finding, like I said, it's finding that sweet spot between these things. But it's not just about going out there and go, everyone charges $2,000, I'm going to charge $2,000. There's a lot more to be considered. The third thing that you really want to think about is, as I said, is what feels actually good and I would say in alignment for you, price wise. So again, I think, you know this, there is a lot of stuff around, you know, people's self belief and money blocks and stuff like that when it comes to people choosing their pricing. And I would say most people, when I start working with them, their price is probably half, if not a third of what it actually should be. But you can't just go out there and double your price because someone tells you you should. If you don't in your heart of hearts believe that that is what it's worth because it's going to come across. I'm not saying don't push it. I always tell people like if, okay, if that's your price and it feels like a safe price and there's a few other ways that we sort of contest if, if you know the market is sort of happy with the price or not, but like if you sort of feel like that price feels bit safe, a bit even a bit under, you can incrementally start, start increasing it and know that you're aiming for that higher price down the track. But if you're. And you know, and I feel like your price should always feel like a little bit exciting, like it might be just a little higher than like just slightly out of your comfort zone, but not so far out of your comfort zone that you show up and you're going to sabotage yourself and you're going to feel like a gross, sleazy salesman and you're going to feel like you're taking stuff from people because you don't believe it. And the other thing with that caveat is I'm not saying that you're. So you may currently have an offer that you're charging $500 for, and it's worth 5,000. And it is that fact that you don't have that confidence yet, you don't have that belief yet, to just be able to put a $5,000 price tag on it and convincingly sell a $5,000 price tag, even though that is what it is worth. But your confidence builds over time. And if you, if you just go out and just go, okay, I'm just going to 10x my price and see what happens. Some people can do that. Some people are very confident humans. And if that is you, then go for it. But you probably wouldn't be here and that having this problem in the first place if that was you. Yeah, if that just feels like. Not just like slightly uncomfortable, but just completely out of alignment. Like not, you know, you just don't have the belief that it is worth that yet yourself. You have to increase your prices gradually. And you have. And the thing is that as you run a program, as you make more sales, as more people come in and they start getting great results, your confidence will grow and you will just naturally start to go, oh, hey, this is worth more. I can see that now. And then you'll bump your price up, and then you'll bump it up again. And then as you refine things and improve things, you can, you can bump it up again. I feel like that's a lot better way to increase your prices than just to go and read someone's book about increasing. About your money beliefs. And not that, you know, one of my dear friends is an amazing money mindset person and I fully, you know, it is a thing and I believe in it, but I think that a lot of people kind of just go too far too fast and it, it will come back. Because if you, yeah, if you're out there going, oh my gosh, it's not really worth 5,000. I hope people don't realize. Oh no, that's going to come across and people are going to, you know, their BS monitors are going to go off and you're not going to make sales. So it has to be in alignment, it has to feel good to you and it has to feel like a fair exchange. Like this goes both ways. Like if you're currently feeling like your offer is way too cheap and it's. You're almost like resenting people for purchasing it, or you feel like you're being ripped off when people purchase it, then again, energetically, you're not going to be there and it's not going to, it's not going to sell well. Like if you've gone, I'll just make it cheaper. It'll be easier to sell. No, if you. Again, energetically, if it's not, it doesn't feel like a fair exchange, but your time and energy and the, you know, because as money's just energy, guys, it is. If it doesn't feel like a fair swap, either way, whether it's too high or too low, it's going to show and it's going to impact your sales. So that's the third thing is it has to feel good for you. Good, if not just slightly out of your comfort zone. Because I would, as I said, I would assume most of you guys are probably undercharging. The fourth thing is it has to feel like good value to your clients, guys, obviously. And by that I mean usually it's not around. And this is where I think, again, a lot of people get it wrong, is they go, oh, well, to make my offer more valuable, I'm going to shove more in it. I'm going to go, here's 30 more PDFs and 20 more videos. And my offer is valuable because it has all of this content. And actually usually that's not what people value. So to make your offer more valuable, you just have to make either. The first of all, you have to know who you're serving and what it is that those, you know, those outcomes that they want or those pain points they want to get rid of. Like which ones are the ones that they value enough to actually invest in. Like if you have a look at who your target market is and how they currently spend their money, if they're not spending their money in that area, usually just day to day without you even going and telling them about your amazing product, even though you might know it's amazing and they need it might not be something they actually value enough to spend money on. If they're not day to day spending their money on that, they're probably, again, it's not something that they necessarily value as much as you might want them to or need them to to invest at that level that matches how you want to deliver it, how you want to sell it, all of that stuff. This is why this is. Find the sweet spot, guys. How do you make sure that you know that is an offer that they value? Like I said, do that quick test, look at your target market, where do they spend their time, where do they spend their money? And then look at your offer and don't try and just cram more stuff in there. It's not what it's about, it's about going, okay, this is the outcome that they want. This is my promise to them. My, my program, my, you know, whether it's through coaching or it's an online program, whatever it is, you will have a promise that you are making to people. We go, if you invest in my thing, this is my promise to you. This is what I'm going to help you with. This is the outcome I'm going to help you to get. And then look at that, that outcome and think about how can I make it more of an abs, more certain, how can I make it faster, how can I make it easier, how can I make. Take away all the stuff you don't need and just make sure that I'm dedicated to getting you from a where you are now to be where I promised you you're going to be in the fastest, easiest, most enjoyable way possible. That is what they value. They value the certainty, they value the ease. They value, they value the fact that they're going to get this outcome without having to work as hard as they thought they were going to have to work or give up things they didn't want to have to give up. If you can nail that, then you're going to increase the value of your offer and that's when you can then start increasing your price. And the final thing, guys, is, and this kind of probably really overlap is really that it's how good it is at delivering the promise that you offer. So like I said, if you want to have a more premium offer, if that's going to fit better with how you want to deliver, if that's going to fit better with what feels good for you, price wise, how you want to sell, you need to make sure that your offer is delivering. If your offer doesn't deliver, it's, you know, you might get a few people through to start off with. But you know, you're going to start to see the fact, oh, not many people are completing this. No one's getting results. That's going to be at the back of your mind whenever you're selling and you're not going to get all that amazing word of mouth from people you're not to going not going to feel good about selling it. It's going to be a vicious cycle. So got to make sure, make sure your offer is good, the value of your offer is there and that all of these all match up. So now the other thing to think about with this is that yes, this is not something your pricing strategy is not necessarily something you're going to just, you know, like I said, pluck out of the air day one, get right from the start and then never change. Over time your pricing will change. You'll. You might go, hey, actually like I said, I want to be more hands off with the way I sell this. So how does that go to impact my pricing or actually we really want to be able to go a bit deeper with this. I want to bring on some team to make this, you know, even better experience. So to be able to deliver it that I need to increase the price. That's going to have a flow of effect. That's going to mean I'm going to have to probably change up how I sell. How does that feel to me? Like it's got to keep coming back. Checking all of these checkpoints, when you do find that sweet spot between them all, like I said, that is when the sales will start to flow with ease. When you're gonna feel really good about every sale you make. You're gonna feel really good about every time you make an invitation or you make an offer. And that's when it starts to get really fun, guys. So I hope this has made sense. I hope this has helped you. If anyone is sitting right now and you go, I know I've got this great product, but it's not selling. Pricing could be part of it. And it's not about making it cheaper. Sometimes you need to actually make it a higher price for people to say, oh, that you know, for it to be seen as something that's valuable to them. Sometimes things, if they're seen as too cheap, people are going to assume they're no good. So it all, like I said, it's a dance. It's about finding that sweet spot. I hope this has been helpful. If it has, make sure you go and share this episode with someone else. You think would would love it. Or hit us up over on Instagram, let us know what your biggest aha was guys. And until next week when I've got another super GPS super juicy episode for you, I hope you all have an excellent week. Keep doing what you do guys and I will see you online. Bye.

Thanks so much for listening to the Doing It Online podcast. If you love this episode, don't forget to subscribe and leave us a review. And if you're ready to take your online course sales to the next level with your own six or seven figure funnel, let Kate show you exactly how today@Stealmyfunnel.com.