Pricing vs. Value: How to Price Your Funnel Offer | Coaching Corner #041

Hey, hey, hey! What's up, everybody?

Hey, hey, sick.

We're here live, even though most of you probably at FHL.

I know. Here we are. You know, another coaching corner while you guys are having the time of your life in Vegas. You might ask yourself, where is Rob today? Well, you know, he's having the time of his life at FHL.

He's, he's having a great time. That's what it sounds like. Yeah. Um, this—

alas, we are here.

Just like last week, we're talking about something fun, something incredibly helpful, hopefully, uh, for everybody watching. And, uh, I feel like we, we've gotten a few people talking about this with us over the past few weeks. This has been a consistent theme within coaching calls or just live calls, doesn't matter. I feel like this is come up. Pricing, pricing and value. Like, what does that mean? It feels like it doesn't mean anything sometimes. And how do we piece it together so it actually helps your business, not hinders it?

Yeah, I think, I think that's a very common, I think, almost inner objection, if you will, of like, you're looking at your offer and you're putting something out there, let's say, and you have a certain price point and you're just— maybe you're feeling a little weird about the price point. You're like, is this right? Am I charging enough? Am I charging too much? And that's what we're hoping to kind of uncover today, some strategies and some tests to ask yourself, you know, what that might entail.

Well, there are— I I feel like a lot of times this comes up when it is pre-offer, like pre-live. Like, people will think that either one, the price is just too much, or they aren't charging enough, or in some instances they're charging way more than they should be and they aren't backing up with enough value. I don't know. Well, I feel like it's the pre-stages that we're coming up with the most.

Yeah, I would. So what's interesting about like the price objection, even within your own mind, is like I think it comes around in 2 spots. Either we've encountered a lot of people who might be running traffic to an offer and then they're like, I don't know why this isn't working. Maybe it's the price.

Right.

And then the secondary to that is what you were saying is even before they launch the offer, maybe you're getting in your own head and you're like, I'm not ready to launch yet. Like, maybe the price isn't right. So, um, but yeah, you wanna, you wanna pull up the slides and just kind of touch a little bit on what we're gonna go, go across, and then maybe we'll get into some, uh, some deeper stuff here in a second.

Yeah, so basically we're just, we're talking about pricing versus value, how to price your offer the right way, and basically, um, just kind of break down the difference between Pricing based on cost, pricing based on value, and what really comes into play for both. I feel like people lead with like what they initially put into it. I'm not gonna spoil what we're talking about later on, but I feel like a lot of times when it comes to— when we're talking about pricing, people are focused on specifically the amount, obviously, which is important, of what it requires to fulfill the actual product or service. And and make it worthwhile. Uh, but they're not really taking into account other things like the outcome that they're actually trying to help that person achieve. What is that actually worth? Like, what in reality does that, uh, show? Well, yeah, overall value and what it holds in the marketplace. Um, if you're taking somebody from, I don't know, um, starting a business to you have $100,000, uh, per month And, uh, revenue there, monthly revenue, that's a pretty big jump and a big lifestyle jump. Like, you're promising a lot, you delivered a lot. You gotta make sure that it's worth that much as far as what they're paying. Um, does that make sense? I don't know, I— whatever, I'm rambling.

Tyson, are you, are you paying $100,000 a month for a program right now?

No, no, I'm not. That sounds I don't even know what would be out there in that category, dude. Regardless, um, talking about—

Tyson's gonna show you today about how to position your offers so you could charge $100,000 a month.

Yeah, yeah, that'd be great. You know what, keep watching, it leads to that. Um, yeah, how to position your offers so that way it feels like a no-brainer to your audience. Uh, common pricing mistakes that leave money on the table and how to avoid them. That's really what we're covering today, breaking into. Um, first slide I have today is like the, the role bonuses play in increasing perceived value without increasing the price. Um, I think this comes back to cost-based pricing. Like when you're setting up something on the front end, uh, I feel like people just will list the actual thing. They list the actual item that they're selling and that is it. And then they try to think about however much they wanna mark up on top of it. That's like the normal routine people will take as far as like determining a price, right?

So you're saying like from the perspective of like, let's say we have a, like a physical product and it's like, hey, I have this book and the cost to even like create this book physically and ship it is gonna cost me $30. So I'm gonna charge $45 for it so I can make a little profit on the top.

Pretty much, yeah, exactly.

Gotcha.

Yeah, I feel like that's where it mostly ends up settling into. But like, there's so much more to an offer typically that comes into play that you'd never even bring up or put into consideration, such as like the extra things that you could do on top of that. Maybe, uh, if for example one of your main offers is a An ebook. All right, or something like that. I'm stealing from Devin. Uh, we have an example coming up here, but let's say—

are we giving spoilers?

No, no, no. Okay, all right, all right, ebook is fine, ebook is fine.

Let's go with an ebook.

I'm changing it up. All right, let's say I run a coaching program, a physical fitness coaching program where I help people get, uh, from thick to skinny. I don't know, uh, how do I position that properly?

Um, how to lose 15 pounds in, in 3 weeks with this 3-week system.

I don't know. Geez. Wow, that's great.

I'm not making a guarantee, but I was thinking of some random headlines, random hooks in my head off the top there.

Yeah, yeah. But like, you, you would— if you're talking about specifically price that is included in the program, maybe it's just one-on-one coaching and you charge, I don't know, $997 for 4 weeks or 5 weeks of coaching, right? That alone, it could be perceived as the same as the value you're trying to come across. But at the same time, what are like other things that we can include in that offer to make it a no-brainer once somebody sees that price point?

I would even go as far as saying, what are some of the things that you are already doing that maybe you're just not including in your explanation?

Yeah.

I think sometimes it's as simple as that. When we're talking about adding value to an offer, I think sometimes people are stressing about, well, what value do I have to add? It's like, well, what are you already providing? And it's like, see, well, that thing you said right there is valuable. That's also valuable. That part of it is valuable too. We don't need to be just saying it as an all-encompassed one product. It's like this needs to be broken down so they know Yeah, you get coaching, but you're also going to get this. And with this coaching, you're also going to get that, and you're also going to get this. And within the 6 weeks, we're going to be doing this as well. And I'm saying very vague examples because I think we're going to try to see if we can come up with some stuff here a little later to give more of a direct example.

But yeah, but like, okay, you have the, the, uh, recorded sessions of a workout. Can you provide the PDFs on top of that? Can you provide like a the meal sheet for them to— one, you're, you're probably sending as an email, but you have it in the course area where they can come back and visually see that. Do you have a community that they can come in, interact, and ask questions live, or whatever it might be? Is there live calls part of this? Like, these are all individual items that we can add and make it visible and apparent when you come to a point of presenting an offer. Um, but those don't come up until you're already present, you're already working through it. Like, people don't think about these small individual items that are moving parts or things they've already created, assets they've created that could help increase the value, uh, perceived value.

The other thing too that I think is worth noting is like internally believing that something isn't of value to someone else. Like you might have something that you're like, sure, I have this, this community, but like nobody's gonna want access to that. There's not much value there. Sure, I have this this worksheet for like a meal plan, but nobody's gonna want that. It took me, took me, you know, 10 minutes to create. Like, nobody's gonna want that. Like, I think, you know, some of it even comes back to just like your false beliefs in and of yourself. It's like you've spent so much time as the expert in a certain field. Like, yeah, something might take you 5, 10 minutes to create, but imagine how much longer it would be for them to actually, you know, have what you can provide if they're having to do it on their own without your experience involved too. Um, just a small thought there.

Fair enough. Um, I guess one last thing on like the act of finding bonuses to increase the perceived value here. If you like, maybe there's something you can do that is a little bit of effort up front but won't be something you have to fulfill or not, won't be something you have to actively maintain or keep referring back to moving forward. Uh, for example, if we have a course, a fitness course, we're staying on the same path where you're just walking people through creating the right meal structure and working out throughout the week, right? Maybe we can do something else like time management. Might be something crazy, but like the time management between you know, meal prepping and working out and finding the right, right time of the day to make that happen.

That's huge. I like that.

You know, something small, but you're just— you have like 1 or 2 videos breaking it down. And now we have a way to, I don't know, complete the, the offer in a sense. I don't know, complement it.

Well, it kind of goes back to even a conversation you and I were having like off screen yesterday where we were talking about offers like we wanted to create. And I was even getting in my head and I was like, I don't know, like, I have this idea, but like, how is that of value? And you're like, what do you mean? Like, think about all the experience you have and like what, what you have in regards to that product. Like, how is that not of value to somebody? And I was just like, I, I just— it comes so easy to me. Like, I don't— So I just, you know, I, I think it goes to show you that this is a constant struggle sometimes that It's useful to kind of brainstorm and write things out. Or hey, if you have, if you have a friend, um, you know, uh, like I do in Tyson, or you, you have us in, uh, open office hours, like, that's, that's a, that's a good time to talk through these things because some of that stuff doesn't, doesn't ever go away.

Yeah, it doesn't matter how many offers you create. It doesn't. Once you create a new one, you're like, ah, I don't know, I have, uh What is it? Where like you are—

Imposter syndrome.

Imposter syndrome. Jeez. There we go. I was like, what is that word?

No, I think, I think we've had a, I think we've had a long day cuz I was also like shiny object syndrome.

I was thinking that too, but that's not right. That's not the correct one. Imposter syndrome in most, most of these new things. Like honestly, the best thing you can do for this type of scenario is just throw things at a wall. Uh, whiteboard, go on, get a, get a Google Sheet open or something like that and just start listing out items like you can end up delivering, uh, based off of whatever offer you're, you're trying to create. Yeah. Um, yeah, anyways, the difference between cost-based pricing versus value-based pricing. What's, uh, what's your first thought when you, when you hear this, Devin?

Cost-based pricing versus value-based pricing. I mean, it kind of— I guess I kind of spoiled this a little bit earlier, but it kind of kind of goes back to my thought of like, well, I'm pricing this based on how much I had to pay for the product plus my profit that I wanna make.

Right.

Versus like, I'm pricing this based on the amount of value I think this is truly going to provide for my audience. And one thing I'll ask people, Sometimes that maybe is worth asking yourself if you're asking like, okay, do I need to add more value to this offer? Is this enough? How do I feel about it? It's sometimes like even when I'm working with a client, if they're working on something and they're like, yeah, I think this is good. I'm not sure what's happening though, or why people aren't buying. And I'm like, okay, well, how do you feel about the product? And they're like, well, what do you mean? I'm like, Would you pay that much for just this specific product? And sometimes the answer is yes, and maybe we dive into something else. But oftentimes it might be as simple as, well, no, I wouldn't. And if the answer is no, then it's like, okay, then maybe we have a value problem.

Yeah, so agreed. Um, I think you summed up pretty well. That was a good example. Um, yeah, I feel like a lot of times you end up undercharging Because if you're focused specifically on cost, that's all you're looking at for other programs and stuff, other things that you're comparing it to or getting up and running, and you're not really thinking about the effect that the thing that you're delivering can actually have on somebody's outcome or life, right?

The other thing too is if you're focused on cost, I feel like sometimes that spews into the offer and that's all everybody's focused on too. They're like, okay, I'm not gonna pay $40 for this book. Are you, are you kidding me? Because it's like that, that's all, that's all it's focused on is the price versus like the value of like, oh, I see it now.

Yeah, focus on making the emotional connection and mostly offering the logical connection so you understand and list out the different items that they might be stuck on. And then we have the urgency and scarcity lead them back to why they need to make that decision, right? That's most, most of the structure of, of any sales page, any, any page that you're after.

Right, absolutely. Also, I'm usually pretty bad at looking at the comments, but I just saw a comment come through from Sammy, said good afternoon, watching from Minnesota.

Hey. Hey Sammy, good to have you. Thanks for hanging out with us. Um, yeah, I, I think that's, that's it for, for I guess this side of things. But the— don't get bogged down in specifically the cost side of things. We're focusing on the value you're trying to add with The products and the offering that you're piecing together.

Um, we might, we might run out of time if we do this, but do you want me to open a funnel and maybe we can try to just like build on some ideas with—

Yeah, I think that's a good idea, honestly.

Yeah, let me pull open ClickFunnels real quick and then I can swap, um, swap the screen that's sharing.

I gotcha.

Um, okay, do you want to push my screen up for me? Because I'm on a different profile on ClickFunnels here.

You're live.

Okay, cool. All right, so, um, this is just a template, um, inside my account here. So we're gonna kind of see what's here. Everybody go easy on me because, um, I was just doing this very quickly here. Um, this is what I was saying when I was saying Tyson was spoiling my, uh, beautiful idea. of selling an ebook. Now, this ebook right now is priced at $97. So we're going to see if somehow, some way we can give enough perceived value for somebody to nod their head and say, you know what, I'll pay $97 for that ebook. Maybe we pass the test or maybe we don't. I'm not sure, but we're going to see how it goes. It's a very basic funnel. This is just an opt-in page here, and then it's going to go over to the order form. But what we're going to focus on is we're just going to kind of do what Tyson said and just brainstorm a little bit. So we have this ebook. I don't even think it had a topic on it per se. It says, promote your ebook and get the chance to outrank your competition. The ideal funnel for selling your ebook. Pretty broad.

Kind of selling ebooks.

Cool.

Yeah.

A course on selling courses. So all that aside, let's pretend like we had, a little bit more of a direct topic there. I'm gonna go down here. I already, spoiler alert, off screen put a stack on here. And so we're gonna think about how we can kind of add some value to this product. So obviously first we have, if it'll work here, we have, hopefully my keyboard's not too loud, but we'll see. So this is the ebook. Right here.

Yeah.

Okay.

Uh, and the other thing that comes to mind would be like if you provided some form of a, like, a downloadable resource that somebody can grab in the book itself, possibly. Or—

You know, you know what sounds interesting?

Huh?

Hear me out, hear me out. What if we do author's notes? What if they don't even want to read your ebook but they still want to know? Okay, so you're just like, hey, You might, you might not even want to read the ebook. What if I just give you my notes about this?

Like the synopsis prior to actually creating the book.

Yeah, exactly. Like the synopsis of like what each topic is and maybe you're going more into depth.

Okay. What if you had like a, a video per chapter? This might be crazy. I don't know. Like just a video.

I love crazy.

A video per chapter of like breaking down that topic so people can watch instead of read.

Okay, no, I like where you're going with that. Um, I would just position it as like, so it's a video per chapter, but we could position it as like, um, uh, let's say, uh, ebook in-depth mini course. What if we did something like that? Okay, so it still encompasses the same idea, but I think it's letting them know a little more of like what it is, right?

Got it. Okay.

And then like a more practical sense, I, I'm not always a huge fan of just doing like this small stack here. I would probably go into more depth of like each bonus somewhere either beneath the order form or above it. Um, so that we have a more in-depth explanation of like, well, what is the author notes? You know, what is the mini course? Why do I need the mini course? And you could add a little information here, but, um, just a side tangent there as well.

Yeah. Um, but regardless, the, the concept we're trying to break down is if it was just the ebook and there was nothing else listed here, no other option, no other thing that they get from buying that, or like the perceived benefit and value, then it makes this a lot harder to sell, especially if a $97 price point for an ebook at this point, a lot of people are doing ebooks. Depends on who you are. If you have like the status to be able to sell it at that point and a warm audience that makes sense for it, then it might be fairly easy. But if you're—

I'll even go as far as saying too, and this is full transparency just 'cause I picked just a random template. This might not be as powerful for an ebook, but if it was a physical book, you might have a little bit more leverage because there's something about having like the physical book in your hand. There's books that I listen to on like Audible or whatever that I'll still go and buy because you kind of just have that trophy after you've finished it of being like, yeah, I remember this book.

You buy wall trophies?

I do. Me and the wife do the same thing. Yeah.

Okay. All right.

Yeah. So I have tons of books that I've never read the physical copy, but I have listened to it. And so I'll put it on my bookshelf as like a reminder. But all that to say, I know we're positioning this as an ebook, but it could still be a physical book if we wanted from that perspective. And you might have a little bit more leverage because you have— let's just say we changed it up and let's just say this is the Physical book, if I could spell. Right. So now you have the physical book, you have the author's notes, you have the in-depth mini course right here. The nice thing that you could do on the backend of something like this as well, to my point exactly, is we can say, you know what, maybe they don't even want to read the book. Maybe they don't have the time for it. Maybe they're— maybe their life is just insane and they want the audiobook, but they want the trophy still, right?

Oh, I don't know about the audiobook. I feel like that's a good value point. Well, I guess it's $97. All right, if the price point was down to like—

yeah, if you're at like $10 or $20, yeah, I'm gonna say if we were at $10 or $20, this would be order bump all day. Order bump city if we're just trying to sell This here. Yeah. And honestly, I might even still, because I don't want to leave money on the table, I, you, you still need an order bump. So I would, I might even go as far as saying, you know what, I'm gonna list out as many bonuses as I can, and I'd probably still take one of these bonuses and use it as an order bump, um, on this page.

Yeah.

So that it gives me leverage to say, okay, Let's say we do decide in the end, you know what, maybe $97 is a little high, but $47 still feels right, right? And so we have $47 here, but you're like, man, I was really hoping I would make a little bit more than $47. That's kind of why I was pricing it a little higher. Well, what if your audiobook was, you know, $27 or, you know, whatever the case, you're still adding more to the cart. So there's ways to kind of, you know, know, move things around, if you will, as well.

Yeah, yeah. Uh, I got a lot of them for you. We got additional unseen chapters. Oh, I feel like for an Expert Series book, you know, it might come into play.

Unreleased chapters.

There we go. Um, yeah, all we're doing though, just what we're illustrating here, is that we're just going down the list and trying to think of like other things that we can deliver upon this that don't take away from the initial offer. We're just adding to it. We're making it so it's such a well-rounded package that the $97 doesn't seem like it's expensive anymore. They get the audiobook, they get the physical book, they can get the unreleased chapter archives. There we go. What is this? 30-minute Q&A. Oh, wow.

Get your questions answered about the book.

Yeah. See, just making it a no-brainer at this point. That's the whole point. You were trying to make it so it's, it's such a valuable ask or, or overdeliver of what they're trying to initially buy.

This, this Q&A too, I feel like would, would also be really powerful if you were selling like a fiction book, because maybe you're like, dude, I wanna know more about like what you were writing about here. Like, what did this mean for this character?

Well, that'd be perfect actually. Yeah, yeah, that exactly. That'd be great.

There's so many times when I'm reading a book like that, When I'm reading a book and I'm like, what did they mean when they said that? And you're speculating and you're just like, I may never know.

You're searching YouTube afterwards trying to find the answer.

No, you know, side tangent, I had that happen when I read one of Hank Green's books and I tweeted him and I was like, he's never gonna respond, and he responded.

Really?

Yeah, I was like, what the heck?

Okay, that's pretty cool. Yeah, so he could take that Q&A all day long. I love that.

Yeah, um, but all that to say, I mean, maybe you might still be saying to yourself like, okay, I wouldn't pay $97 for this, but you can kind of test that meter and say, okay, maybe the price still is an issue, but I'm adding a lot of value. Then the question becomes, okay, would you pay $47 for it? I'd pay $47 for this.

I'd pay $47. I think I'd still go with the $97. I've paid more for a signed copy of a book book. Uh, that's true.

I just feel like I just paid $70 for a signed copy of a book and it came here and it was literally just a, like, a hello, my name is tag with their name signed on it. And I was just like, okay, they got me.

Autographed hard copy edition, uh, that adds value too. Like, obviously these things, it depends on your current, uh, position in the market, but Regardless, you're just trying to find other small things that can bring us to the next level.

Yeah, I don't know how many people would want my autograph, but maybe there's a couple.

Yeah, it maybe would— it wasn't worth 97 by itself with just the book, possibly, but now it's the full package. Think of it like the basket deal, basket bundle, and it just makes sense. Uh, I feel like this leads— we have a few more minutes here before the end of this. I— at least leads us back into, you know, this last slide here. I got you. Okay, you're good. Uh, the last slide here, which is, is it the price or is it the value? And, um, basically all that means is when something isn't selling, I feel like the first thing that people aim for is to lower the price. They aim to lower the price because they think that that's the, the biggest thing that's holding people back or preventing the actual sale from happening. But I— most of the time, the price, it's, it's probably not the problem. It's, it's not the problem at all. As we kind of just laid out here with the example. The price for the, just the ebook itself, it might've been kind of crazy depending on how, who the author is, what the book's about. Is it fiction, nonfiction? All these things come into play and overall your, where your current, I don't know, brand lies, I guess, with the amount of people watching. But if it was just like if you're a fresh author, you're selling your first book, it's $97. I don't know. There's— the problem is that we don't know the value behind it yet. We're unsure of what the other, other components, uh, that are in play here. If it's just $97, I don't know who you are, I feel like I wouldn't spend that much.

And that's the thing too, the, the less people know who you are, the more you'll have to position yourself in a position of value. But the irony is, the more people know who you are and the more products you have and the bigger your audience is, Probably the more repertoire of things you have that you can throw in of value. Like if we think of things that Russell creates, like he's got—

Yes.

He's got an endless amount of stuff that he could throw in at a moment's notice. Right. But I think that just goes to show you, it's like the more you do it, the more people know who you are, the more you keep these products in your back pocket, the more you could just start pulling from your own library of things. You're like, you know what? made this thing that one day, and like, that feels like it could fit. Let's throw that in there.

Yeah, yeah. I— okay, the, the first point here on this I feel like sums up most of what we've talked about today. Before dropping your price, I, I think Devin even had an example that kind of leaned on this a bit before. Uh, before dropping the price, make sure that your page is actually doing a great job, or a good job of communicating the value that they're going to get. whatever it is that they're buying. Maybe the ebook is not the greatest example in this scenario. Maybe we can align it more with a physical product. Maybe we can align it with back to the physical fitness trainer, whatever. It doesn't matter what you're selling regardless. At the end of the day, you're just trying to position it in a point that if I looked at the sales page or if one of us looked at the sales page, we would instantly understand that, oh, I'm getting all this for that price. That's the feeling you're going for. That's, that is it. Like, it's, that's no-brainer.

I'll leave you guys with like a really small note too. I know we got like 20 seconds left, but I, I feel like, um, sometimes if you're in a spot where you're like, man, you're, you're, you're building on a stack and you're putting all this stuff together and you're like, I feel like I might possibly be giving away too much, that might also be a, like, a point of like, hey, like, this is actually like really valuable. So If you find yourself in that point, because I come across a lot of people that are like, you know, Devon, I would love to sell this book for $10 or this product for this much, but I feel like I've put too much in it to only do that. And I was like, see, but that's the answer right there. That's so much value encompassed in what you've created. Imagine what people are gonna say if we can convey that value and they'd be like, only $10, huh?

Wow, only $10. That's it. Yeah, I feel like anybody has $10. Um, okay, uh, if that's pretty much it for this, we just want to give you permission— if, uh, that's the best way to say it— it's like, go back to the offer, try to throw some more things at the wall here instead of reducing the price, and make it so what you're selling actually is worth the amount that you're selling it for. Um, just go through the page as if you're a buyer. And if you have too much bias to go through and do it yourself, have somebody like a friend or someone close to family that you can— I don't know— that, or reach out.

Or we can definitely open office hours. Wink wink, good segue.

Or if you want to work with us directly, um, speaking of which, if you would like help with this on your own side for your own business, whatever it might be, and you want to do this one-on-one, then, uh, just go ahead and click that link I just put in the chat there and, um, go and speak with the team. I don't know, see if this is a good fit and we can break it down together one-on-one.

It's a fun time. Fun time on the coaching calls.

Absolutely. There's so much you can cover in this. We can expand on what you're currently delivering. There's usually something that is just unseen. And, um, once we bring that up, usually you'll see some good things on the other side. So that's all we're gonna say. Uh, check it out. Otherwise, uh, that's it for today. Um, hopefully this is helpful.

We'd love to promote you going to FHL, but if you're not already at FHL, I hate to break it to you, it already started.

So it's already happening. Today is that day. And, uh, that's okay. We're enjoying it from a distance. All right, that's it, guys. Have a fantastic rest of your week. We'll see you next Tuesday. And I don't have anything else to say today. That's it. Have a fantastic rest of your week.

See you guys.

Have a good one. See you later.