There’s no doubt about it, nailing down the value of your offer can be confusing for course creators. Is this number too high? Is it too low? But just because it’s not easy, doesn’t mean you should throw the whole concept out the window (as tempting as that may seem…).
The value of your offer gives people more context into your program and why it truly is worth it. While there’s no magical formula for setting the value of your program, Nicki and Kate offer practical ways to approach it in this episode, giving you the confidence to finally tackle this task head on!
Looking for closed captioning or a transcript? Watch the episode on YouTube!
A Sneak Peek at the Episode
[0:55] Nailing down the value of your course can be confusing for course creators but it is certainly valuable to include it.
[4:13] Price can feel less nebulous than value because you need to have a price if you want people to buy your product. You also have more information to help you set a price in a way that allows you to hit your revenue goals. Coming up with the value of your course requires a bit more digging in.
[6:12] Fundamentally, the things that we sell have to be worth so much more than the price that we charge for them.
[7:20] The actual real world value of our programs is often so much more than people would believe–Nicki gives an example from the Circuit Sales System program.
[9:20] The concept of real world pricing context is where you show potential customers the financial ramifications of not solving the problem that you help them solve.
[13:25] If you tried to tell people the true value of the program, it would be unbelievable–so we need to put it in numbers that they understand. Generally you want your value to be around 10x what the cost of your program is.
[14:37] It’s so important to have value because you need that higher price anchor to help your actual cost of your program have context and feel valuable.
[19:40] Customers don’t understand what a deal they’re getting unless you tell them! The goal of price anchoring is not to show a fake price compared to a sale price and say “oh look at the steal you’re getting.” The point is to make people understand that this purchase is worth it.
[21:16] When it comes down to it, we will buy things that we want badly enough. We don’t know what expectations people have, so the only thing we can do is give them some guidance as to the true value.
[24:51] If you show potential customers a price before you’ve broken down the value, and before they’ve truly understood the worth of your program, then you’ve lost them.
[27:29] Two of the things to dig into for your value: the return on investment that someone could reasonably make within the first few months or years, in addition to the amount of time, energy, and expertise that you’ve put into creating this program.
[29:42] There is no exact science when it comes to pricing and value but what your competitors are charging should have very little bearing on what you charge.
[32:45] There is no perfect formula for your value, which means it’s also changeable. Listening to your customers gives you additional context for the impact your course is making on people’s lives and what your value really is.
As with every episode, we highly encourage you to listen to the entire conversation! But, here are a few of the highlights:
“What is my program worth? I created it, I think it’s really valuable but is anyone else going to feel like it’s really this valuable? What is it truly going to do for someone? It might be tied to a financial goal certainly, but it also might be tied more to life goals, making someone’s life easier, better, smoother etc. and how do you put a dollar amount to that? It takes a lot more work and sitting down with it and it won’t come as fast is all that’s to say.” Kate
“Fundamentally, the things that we sell have to be worth so much more than the price than we charge for them. It has to feel like a deal for someone for them to make that purchase.” – Nicki
“I understand the idea of wanting to get rid of the price attached to the value because it can be a little ethereal or hard to nail down, but the price of our courses is hard to nail down.” – Nicki