4 ways to restructure your pricing

Have you noticed that the price of everything has gone up? I mean, I probably don't have to tell you how true that is. In fact, yesterday I just got an email from my gym telling me that they're raising our monthly fees incrementally, but raising them nonetheless. And it's been several times since I've joined that those fees have gone up. So, as a practitioner, as we notice things are getting more and more expensive, we have to start looking into, are we structuring and pricing our programs and our services correctly to make sure that they align with the times, right? We can't be left behind while everything else is getting more expensive. I mean, we buy those other things. We buy groceries. In fact, yesterday I went to the grocery store and 2 bags of groceries that I could easily carry without struggling were almost $100. And I looked at the bags and I'm like, what did I actually buy here? Everything adds up pretty quickly. And I know that I could have I bought an entire grocery cart full of food for $100 at one point. The price of gas, like all these things are getting more expensive. And because we use all those things, we're also sensitive to how things get priced, you know, and it's important for us to look at our business as being regenerative for ourselves and our families, for the business itself, and of course for the clients that we serve. And when there's imbalances there, where you're perhaps offering more value than, than what you're getting compensated for, I find that the karmic energy and the universal energy doesn't like that very much. So we actually get penalized for undercharging because it's an unfair system. And the universe, I believe, God, whatever your higher power is, believes in fairness. And so we have to fairly price ourselves to reflect the value that we offer. Now, if you're in the same boat as a client I just spoke to, and you're maybe in a rural area, or maybe you're in a price-sensitive market, and you're concerned about that, I totally get it. My suggestion here isn't to just raise your prices for the sake of raising them. It's to, it's to adjust your pricing to adjust for the marketplace. And if everything else in the world is getting more expensive without actually adding more value, then we have to adjust while adding more value. So let me give you a few ways to start thinking about your pricing. Now, one thing that people struggle with, or practitioners struggle with, is that they trade time for dollars. So they charge an hourly fee of, let's say, $500. So we're, in a sense, valuing our time for an amount of money. Which means that we might say, "Okay, my time is $150 an hour or $500 an hour." And that's really not accurate because if somebody came and just sat next to you and you didn't say a word to them, they probably wouldn't pay you $500. Now, there might be some freakish people that would, but my point here is that it's not your time in the same space as that person that's valuable. It's the expertise that you bring to that time. Which means that if over the last few years your expertise has increased, your problem-solving skills have increased, your experience has increased, then you actually bring more value to that time. So that's one thing I want you to take into consideration. Now, if you're charging the same price while just with inflation everything is getting more expensive, you're kind of unconsciously telling yourself you haven't grown, that there isn't more value that you're bringing to that time with that person. And I know deep down inside, you probably know that there is, unless you forgot everything you learned, or unless you've— what you do makes people sicker than rather than healthier. Maybe that's something for you to evaluate further. But if you have experience and you're bringing more experience to that hour, that's justification for you to adjust to fair market pricing. Next, you want to kind of consider, uh, if you'd have a hard time adjusting your pricing, then we can adjust the other variable, which is time. So which, uh, an example of that would be instead of spending 60 minutes to have a conversation with somebody, because you're smarter, wiser, more experienced, you could probably get that same amount of information into a 45-minute session, thereby freeing up 25% of your time, thereby in effect raising your value 25%, if you will. If you're still trading time for money, you could probably take it and make it half an hour. If you just took out all the vagaries and fluff, you could probably take what you used to do in an hour and do it in half an hour because of the experience that you have. And if you set up the right tools and right resources for your clients, you don't have to tell them about gluten and spend 10 minutes on it. You could just send them a video about the topic. So now we have a way to condense the amount of time that we spend with somebody, which means that if you condensed it down by 25%, in the case of a 45-minute appointment, then you could see 25% more clients if you wanted to, or free up 25% more of your time. Your client is getting the same value because you can do the same work faster and smarter with the experience that you have, and so therefore they're paying the same price. Okay, but you've created an efficiency leverage for yourself of freeing up more of your time. The third way to think about your pricing is to blow up your current offer or keep them on the side and not offer them anymore, but reevaluate. If you were to start all over again in today's age, in today's time, with today's technology, how would your offer be different? What would you want to bring to the table if you had to start with a clean new slate? Now, you bring all the experience with you, You might even bring certain components of what you've always done with you, but you've added more tools since you created that initial offering of your initial discovery call or your initial packages or programs, whatever you were selling prior, which means that if you come up with a whole new offer and every offer you create, no matter how whole and how new it is, is gonna have components of everything that you've learned up until this time. So we're gonna bring that with us. We're gonna carry that forward. Uh, but every offer now, this new offer that you're creating is brand new, which means it requires a new lens through which you price it. There's likely more value in this offer that you're making to people, and there's likely more favorable outcome that you're gonna help these people create. With this new way of offering what you are sharing. So let me give you an example of that. If right now somebody schedules a new client appointment with you, and that new client appointment is— we'll just use round numbers, for example— is $250. They come in, they fill out a form, you review it, you talk to them, you give them some recommendations, maybe you send them a follow-up email, right? That's your version 1 offer, and that might be going amazing for you. Okay, now imagine this. Starting tomorrow, you have— you give this initial appointment a new name. So, ours was Discovery Call. We also have a Metabolic Roadmapping Call, and our latest offer is a DNA Discovery Call. And so, we didn't want to call it the same old thing because that same old thing was not same old thing, but that initial service was free. We started off with doing free discovery calls, But now our DNA Discovery Calls, that's a different service. And of course, we've priced it in accordance to that. Giving a new set of— putting a new fresh set of eyes and creating a whole new offer, giving it a new name, and then giving it an appropriate price point. So let's say you have your normal discovery call that you do, or intake call that you do, it's $250. How can you upgrade this call? You could maybe call it a Super Discovery Call, or I'll let you come up with a creative name for it, where you now record this call. So, the client can sit back. They don't have to take any notes. You're then going to give them the transcript of the call, the recording of the call, and you're going to give them an executive summary of the action steps that you want them to take. So now, I've taken this really anxiety-inducing experience where I've gotta write everything down really quick, they've gotta write things down really quick, they have to remember everything that you say, and their brain is probably not where you'd like it to be and they'd like it to be, that's why they're probably there to see you. You're creating so much stress and anxiety around the process. If they could just sit back, have a nice meaningful conversation, everything's being recorded, they get a copy of the recording, and they get an executive summary, Doesn't take you much time to do that. Literally pressing record on your phone, and then the transcription is done for free on your phone, and you then transfer it into whatever service you want to create that executive summary. Doesn't take more than an extra couple of minutes of your time. Your staff can actually do it for you, but you've created at least double the amount of value than them coming in and not having that call recorded, not having the executive summary, not having something that their spouse can go back and listen to that amplifies the value of what you're offering. So you see, just by— like, I wouldn't charge the same price for that as what I was charging before. I would charge a new price that makes sense for that offer. And moving forward, we've retired the old way we do things and we've upgraded them. So we don't even offer the old named service anymore. This is all we offer moving forward because this is the best of what we have to offer. It's values-driven. It's aligned with the times. And I believe it just makes the most sense to view your business and offer through that lens of just creating something new, creating a new name, creating a new price point while bringing the elements of what you've always had to offer people, the experience that you've had to go through to be able to add the value to the time and your expertise to that time. Now, the fourth way I want you to look at your pricing is by creating a price anchor. A price anchor is where, let's say you charge $250 for your call and you've always, you've charged that for the last couple years and you're kind of comfortable there, but you want to explore a little bit. Here's what you could do. You can create a price anchor. A price anchor looks like if I go to your website to schedule that call, it's $500, it's $499. If I send you to that link to schedule an appointment, I can have a coupon code that brings a price down to my previous price point. So let's say your previous price point is $250 and you want to bump it up to $500. right? Or $400, whatever that number is, right? You're never— not going to charge anyone $500 just yet. You're going to give them a coupon code that brings it back to the old pricing. So you see, that's very— feels very safe to your nervous system, but you've created a price anchor now that your time is worth that much, and you're offering that person the discounted rate. Maybe your old clients, you grandfather them in, but they see, oh, like, Susan now charges $300 for this appointment, but I get a $50 coupon because I'm grandfathered in as an old client. So you're creating that price anchor. And then when you feel comfortable, or it'll probably happen when the first person pays you $500 and they somehow got into your funnel or got the link and they paid it and you're like, oh my God, people will actually pay this much. I promise you that'll happen. And of course you can, if you want, refund them half the money back. But that will happen to you where people will be happy to pay you for that time because of the expertise that you bring to the table. But that price anchor gives you that comfort zone to work with. So I've given you 4 ways to look at your price. One is by looking at the value and experience and the intellect that you bring to the time that you spend with the person that you're helping. The second way is by adjusting the amount of time that you spend because you can do things faster now with the experience that you have. Number 3 is creating an entirely new offer, bringing the best of what you've always done and adding to it. And I give you an example on how to do that. And then number 4 is creating a price anchor where you set that new price point and then use coupon codes to adjust back down to your existing price so that again, it could be a soft landing and price transition for you. And you can also anchor your old clients into the old pricing if you want to. I hope that helps. I'd love to know what strategy resonated most with you. You can let me know in the comments. And if you're enjoying these practice pearls that I'm sharing, please let me know. Subscribe to the channel. That's one way you can let us know that this information means a lot to you, and you can also leave some comments below, like the video, and share it with others. I feel like it's my duty to share my experiences and wisdom with others, and Hopefully you can pass it along to those that need it, need to hear it the most. Much love. I am Sachin Patel with the Precision Wellness Practice. I'll see you soon. Bye for now.