Pricing Your Products
I can’t tell you how to price your products, of course. You have to learn your market’s expectations and sensitivity points by experience and research. But I can and will offer you some general guidelines for pricing that prove true across a broad range of products and industries.
Always offer people an A, B, or C option. What the price points are for each of these options depends on the market you’re in. If you’re selling to plastic surgeons, the numbers will be significantly higher than if you’re selling to caterers.
Let’s take an “average” example. I would suggest you price one package at around $100. Price your package “B” at around $300 and package “C” at around $700. Play with these numbers in your market to see what works best. But, that’s a good place to start.
If you have a book, never sell it alone. It gives people too easy a way out when they want to buy something but aren’t sure what. They give you the $25 and they’re done. Instead use your book as a premium for anyone who buys one or more of your packages (A, B or C).
Depending on your attendees, you may want to adjust your prices upwards or downwards. I have a standard order sheet in one of my markets. It lists three packages. Package A goes for $397. Package B goes for $597 and package C goes for $997.
When I start my pitch from the podium during a seminar, I tell them to strike through the $397 price and put $297. Then I have them strike through the $597 price and put $497. I mark the C package price down to $777. Maybe I’ve been in Las Vegas too long, but that’s what I do.
If I’ve got a group that I feel can afford it, I may only knock $50 off each of the smaller packages and $100 off the large package. It all depends on the group and what I think they will “tolerate.” If you have a multi-day event, you can always go back and cut prices some more if they don’t buy.
Again, this is more of an art than a science. Test things for yourself. Email me and tell me how it worked out.