The #1 Pricing MISTAKE That's KILLING Your Sales and Profit

What is the best strategy for pricing when it comes to your course or your membership or your subscription or your high ticket program? And what do different price points say about your product? How people trust you? Well, in today's video I want to talk about pricing for coaches, mentors, service providers. One of the biggest pieces of advice I see that's out there is okay, look what everybody else is charging and then charge something similar. And unfortunately this is not, not really very good advice. The reason why is because your competitors that are out there, they might not know anything about pricing. And the people that you're looking at as far as how they price things probably are undercutting themselves in a way where if you did what they did, you wouldn't make as much money. What I like to look at is this. What are the leaders in my industry charging? What are the people who are leading the way doing in their business? I'll tell you, in the coaching business there is a wide range of fees. On the high end, it's $30,000 in the consulting space that can go all the way up to multiple seven figures in fact. And by the way, that's a lot of people don't realize that consulting can make you seven figures. Coaching can make you multiple six figures per client per year. And courses, well, courses usually sell for anywhere between five to upwards. I've seen some courses sell for $5,000. Okay, so how do you decide how to price things? Well, the first thing I'm going to say is this. Don't be the cheapest option. The reason why you don't want to be the cheapest option is because being the cheapest option means that you're not going to get the right people engaging with you. You're not going to have the right people on board with you when you work with them. Here's the reason why. When you're the cheapest option, you're finding what is called value seekers. And you might be watching this video right now saying, well, I'm a value seeker. What does that mean? I'm the wrong person you might be for a specific product. Because here's what I'm talking about is you want to find people that truly are willing to part the Red Sea, pay anything to solve the problem that you will. I'm going to give you an example. My air conditioning went out at my house the other day. I was willing to pay whatever the marketplace asked me to pay, which was right around $10,000 for my house to have air conditioning back in my house. I wasn't gonna Sit there without AC for six months and say, well, we'll price it out. We'll figure out the best deal. I'm gonna go shop around. No. My family needed air conditioning in my house that day, and they figured out a deal to make me be able to do that. I was able to. To get a really good deal, be able to pay for that. And so what's awesome is that's what you want to do. You want to make it very easy for the right prospect who has a need and has a problem. You might be saying, well, Jeremiah, isn't that exploiting people's problems? I guess, in a sense, you could see it as that. And I would say that one of the things is that every business does that. Restaurants exploit the fact that. That you're hungry. Okay? Like car dealerships exploit the fact that you need transportation. So every business, at its core, takes a need and then fills it. I want you to think about when you go car shopping. Have you ever gone car shopping but you're not ready to buy? Right. You ever notice the salesperson's not really. They don't want to give you a lot of attention because you're not a buyer, and you might find that to be disrespectful and all that. You might say, I want. I want to be treated red carpet, carpet, all that. Listen, I understand. I get it. I get where you're coming from. I get what your desire is. I get what you want. But can I tell you this? As a business owner, you need to do what is best for your cash flow in your business, which is focusing your energy and efforts on who is going to pay me money today to solve a problem, to get a result. When I work with my clients, I help them to get more clients. I show them exactly what steps to take to grow their email list. I show them exactly what to do step by step to be able to get results better than the other coaches that are out there. I show them how to stop losing money with their Facebook ads and their Instagram ads. And I show them exactly what to say and how to say it to attract the right clients to them and get people to pay. And so listen, if you're listening to me right now, again, you're here because you want to learn how to get people to pay. So one of the keys is with pricing, is you want to price it in a way where people who are serious are going to buy from you. You don't just want anybody, and the economics don't work out by being the cheapest option. The reason why is because if you are simply merely the cheapest option on the market, there's not enough economics there for you to have a real business. You're not going to be able to pay for advertising. You're gonna be able to keep the lights on. You're not gonna be able to pay for staff as you grow. And by the way, when I talk about staff, I'm saying, like, you could hire people in the Philippines for $5 an hour that can work full time with you. And that's a truly great wage for them. But they can help and assist you to grow your business so that you're not the one doing everything. And that's important to do. In my business, I have multiple people that work with me. They work with me, they come alongside me, and I work with them to build my business. As a business owner, it's important for you to position yourself for maximum profitability and attracting the right clients to you. So when it comes to pricing, it is a boundary. You can't be all to everybody that's out there. And if you're underpriced, you're literally missing out on a ton of money that's out there. You might say, yeah, but Jeremiah, if I charged more, I'd have less people. You would make more money, though. Let me explain. Less people paying you more money equals more money. If I have a hundred people paying me 10 bucks, 50 people paying me $30 is going to make me more money. I'm going to make $1,000 off of a hundred people paying me $10. Whereas if I have 50 people paying me 30, that's $51,500. So that's higher profitability. And those 50 people are more serious about the need and the desire. And there's an economic curve here as how this happens with pricing. There is a price point where people won't buy. And there's a few things to decide with that. If people won't buy from you, there's two things that are at play here. Usually it's actually not that you price too much. The offer just is not attractive enough to them because again, the right offer to the right person, that solves the right problem. People will yes to and they will pay you for it. And so if your offer is not solving a big enough problem for people, you need to redevelop your offer so that it solves a big enough problem so that they will pay you. And really, this is where we can't let our ego get in place. While I do this or I do that or this is what I do all the time. And I, I'm afraid to change my offer or adjust it or do that because I don't want to offend people or things that like my friends. Take your emotions out of this side of things. When it comes to pricing, pricing is not an emotional equation at all. It is very much logical. And that's one of the reasons why a lot of coaches, mentors and service providers, they attach their identity to their pricing. Now I've seen it both ways. They undercut themselves because they really have this whole like superhero, messiah, mantle type of a thing. I want to be all things to everybody and I want to help so many people. And then they're losing money because they're not charging enough or they charge so much and nobody is going to pay them. And so if like nobody is going to pay you, what you're looking for is you want to look for a closing rate of right around like 30% of the people that you get to make an offer to. I'm talking ones who go all the way through your offer. Like if I get leads on my email list, I'm not talking about 30% of my leads. That's like 3% of the leads are going to sign up. But out of the leads that sign up, how many of them go through the whole presentation? Out of those who go through the whole presentation, a good 30% are going to become a client. And that's effective. And that's how you know your offer stack is effective. If you're going to price something cheap. Like I'm going to be launching a class here real soon all about Instagram ads. It's an Instagram ads playbook. And I'm gonna charge 495 for it. $4.95. Really cheap. I'm not making money on that. It's gonna merely pay for my ad spend. But what it does is it qualifies people better than a free offer. If it's a free offer, I'm gonna have a lot of people who are not serious. If I'm charging five bucks, I'm gonna have a lot of people who are serious and those who pay that are going to be more willing to become my client. Okay, so when it comes to like pricing tiers, here's how we price things out. In my low ticket offers, I usually do like five to seven dollars. And these are merely just attraction offers to attract new leads, new people into my ecosystem, into my space who can become a potential client. From there I Have my wealthy Coach Academy program. Right now we charge $197 a month for it. I have a 14 day free trial at the end trial. I also give people $120 off their first month. So I'm giving a really good deal. I mean that's a really good deal. It really is. That's unheard of in this industry. For the value that we offer, we have tons of courses. You get coaching with me, I help you build your landing pages and the language of your ads and exactly what to say, how to say it, how to put it all together, how to get more clients, exactly what to do, all the nuances of that in there. For that the value is incredible. And then above that I have my $900 a month vi. Above that I have my $8,000 a month consulting offer. $8,000 a month? Well, who's paying that? Well, a business owner who's already making a million dollars paying $8,000 a month to have me consult them so they can go to 10 million. Is it very affordable? Okay. And I, and I have multiple clients that pay at each of these levels. And this is what my business is, is I want to ascend the 495 person up to the $8,000 level. Maybe you're watching this right now. I'd love to work with you at whatever level works best for you. You know, we have these new courses come out. You can find some of our latest courses. We still have a couple free ones that are in the, in the description below. The goal is to ascend people up the ladder and you price out each tier depending on what the different price points are. So like low tier, I would do under 50 bucks. Your low ticket attraction offer, this is like a lead magnet, but you charge money for it. It's like an opt in offer where people give you their email address. But the problem is that now a lot of people, you don't want freebie seekers. So if you charge just a little bit of money, even if it's five bucks, because that's what I like to do, five bucks goes a long way because then my next offer after that is free 14 day trial, which is just a no brainer for those people, they already spent five bucks, might as well do something for free. And, and if they like it, the only risk to that is another $77 after that. Okay. And so from there, like that is exactly what we do in our business. That's exactly what I've done for the longest time to be able to get clients to be Able to have the economics work out to where we're making the kind of money that we know we need to make in our business. You need to price things out so that you are profitable and so that you're attracting the right people and so that you're repelling the wrong ones, the ones that are not a good fit for working with you. And that's a really good thing to do. That's a really great thing to do, in fact. And so what I would recommend, if you're a business owner, if you're a coach, if you're a mentor, if you're somebody who is building a business and you're trying to figure out, okay, what's the right way to do all this? How can I make sure that I'm not wasting my time, that I'm not undervaluing myself? One of the best things you can do is get into an environment like my Wealthy Coach Academy program. We can look at your offer. We can look at exactly what you're doing to help you know how to price things. You can also leave a comment below this video and I can just leave a quick little comment back to you on that. That's something. A free service that I offer people is being able to comment back on the videos that I create. So that's something that I would like to do to. Would like to help you with. If you're a coach, if you're a mentor, if you're a service provider, you owe it to yourself to get paid. To get paid significantly for what you do, to not undercut yourself for the type of value that you offer people. The type of value that you offer people is tremendous. It's worth it to charge what you're worth. Know your worth. See yourself that if you are solving a problem for somebody, a real, true, valid, actual problem that you are solving for somebody, they will pay you in exchange for solving that problem and for alleviating the pain that they are experiencing. You are a pain killer. You're killing and alleviating the pain that they are experiencing by having this problem. And if you do that, if you. If you come to the table in your business and you're willing to lay aside your fears, your worries, your hesitations, the resistance that you have to this, and you say, you know what? I'm gonna do what Jeremiah says, I'm gonna follow him. He's been doing this a long time. I've been in this industry for 22, almost 23 years, and I know exactly what it takes to get results in a business. Like this, as a business owner like you, what to do to be able to get the kind of results that you want. And so if you follow what I'm saying in this video for pricing, you could make a ton of money. The different tiers you have the low ticket tier, right under $47. The next tier up, if it's a course, 500 to $5,000, a high ticket would be 6,000 to 6,000 to $19,000. And then above that you might go to 30,000 upwards to 60 or 70,000. From there in your offers you're like, what would it, what would I offer people that they would pay that much money for? Well, if you solve a big enough problem, people are willing to pay you that much money. What I recommend a lot of coaches do is this. I recommend you have your low ticket offer, under 27 bucks, you have a coaching program that's maybe 97 to 197 bucks a month. You can offer a trial or discount on the initial ticket to that. And then from there offer some kind of like a $10,000 a year with a monthly payment offer like I do, 900 bucks a month. Those price points are really tested. They're dialed in and they work. And then above that, find something that you can do that, that might be over a hundred thousand dollars a year, 100k a year offer. That's what my $8,000 a month offer is, something that you can make 100k a year from one client. And usually again, there's probably gonna be some kind of a service, some kind of a white glove thing that you're doing with that. But the right person will pay it. They will. There's so much money available out there, you don't even realize it. Most people don't realize how much money is available in the world until they go out there and they start selling and they realize, okay, I can actually make a significant income, a full time income, doing what I love in my business by simply raising my prices, by simply finding the right people to work with. And that's what you can do in your business. And I'd love to help you do that. Inside of my wealthy Coach Academy program, click one of the links below. Jump in, check it out, try it out. We'll see you in there. We'll talk soon. Have a good one.