Today, I want to talk to the business owners in the room and chat about your pricing.
Lord knows, no one is talking about this stuff and we need a bit of a keke.
If you’re a creative business, I’m willing to bet you got into this line of work because you’re passionate about the art you make… whether that’s graphic design, planning gorgeous weddings or creating tasty vegan snacks.
And let’s be honest, it’s super hard to put a price on your art. But in order to make a business a business (and not a hobby), you need to have a solid pricing strategy in place… or things will flop.
So let’s talk “High Ticket” vs “Low Ticket” first.
“High Ticket” means a product or service you sell at a premium price.
When customers purchase this from you, they should expect a high-end experience and the potential for transformative results. This is your signature product offering, something you’re unequivocally known for.
“Low Ticket” should still be of high quality but is delivered at a price that is more accessible to the greater market.
This could be the first offer or product that a new customer buys from you, to start their relationship with your brand on their customer journey.
What do you sell that’s “High Ticket” right now? And what do you sell that’s “Low Ticket?”
Now, what would make them better?
- Better collateral (worksheets, supplements, packaging, etc)
- More bells and whistles
- Maybe a different price point?
Set a 7-minute timer and journal this out. See what comes up.
We get this question a lot and I want to address it… you might find it’s a heck of a lot harder to sell “Low Ticket” items than it is “High Ticket” ones… why is that? I’ll tell you now.
Typically, you need LESS people in the pipeline to sell “High Ticket” items. Plus, the higher price makes these buyers much more committed to the end result than those who spent less.
When you pay more, you pay more attention.
Just think of the last time you spent hundreds on a personal trainer vs. just $40/month for a gym membership. Which did you stick with longer? Which gave you better results?
So, buyers need more ‘skin in the game’ but you as the seller need to also overdeliver on the experience, once they’ve signed on. This is where the REAL work begins.
The next thing I want to talk about is “small, medium, large.”
Friends, one thing that might be holding you back, is that you are offering WAY too many options.
Their eyes glaze over, and they get decision fatigue. Do you know what happens then? They bounce off and go back to scroll, scroll, scrolling on Facebook instead of doing the thing.
So, keep it simple.
Small, medium and large.
Three options is all people need.
Most will go for either the one in the middle or the large option. And yes, you can still do custom packages (if that’s your thing) and follow this simple pricing method. Just show them in bullet points what they get at each level (and more importantly, what they miss out on with the lower levels).
And then, let them decide.
“BINARY BUYING” IS A BAD IDEA.
That’s the thing where you just give them one option and one price.
It comes off as a pushy used car salesman, and encourages that hard sell approach. “Do you want it or not?!” Kind of thing. Bad, bad idea.
A very smart mentor of mine taught me this ages ago… “If you can truly cure their pain, the price doesn’t matter.”
They are buying on value and not price. Remember, you are not Walmart. Nor should you try to be. What you offer is custom, boutique, special and one-of-a-kind.
And if your expertise, your knowledge, your skills, your art is exactly what they need, then they will find a way.
To be clear, I’m not suggesting you fleece people. Your price (no matter if it’s $10 or $100 or $10,000 and beyond) should be rooted in the value of what you deliver.
Remember, “High Ticket” items should look and feel world-class in every single way. That’s how you create raving lifelong fans to your brand. People who tell their friends and shout about you from the rooftops.
It’s not about price. It’s about results.
And just one final whisper, just from me to you, dear friend… come in closer.
Your price is not a reflection of who you are in the world.
The number of sales you made this month does not define you. Your worth is rooted in so much more. The amount of money that sits in your bank account does not mean anything more than the definition you give it. Money is a vehicle that helps you get from point A to point B. That’s it.
Remember, money comes to you freely and easily… if you are willing to receive it.
You can do this, I believe in you.
It’s time to SIMPLIFY.
If this “Thought of the Day” inspired you…
Snap a photo of you doing the thing and send it to me via Instagram, privately or publicly… Just tag @thesimplifiers – I’ll be your virtual accountability buddy in your quest to simplify your life.
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As always friends, keep things simple.
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