The Psychology of Pricing Your Programs and CoursesJan 31, 2022
I’ve studied psychology for many years, it’s the foundation of my education, and I love anything that has to do with human behavior and how the mind works. So, today I want to present you with some psychological reasons and tips for pricing your programs and courses, so that you can choose your prices strategically.
Your potential clients want to achieve results, and they’ll feel more confident about your ability to help them achieve those results if your pricing takes the following tips into account.
Lower prices tend to go hand-in-hand with lower value – or at least that’s what most people think when they’re making purchasing decisions. When potential clients are considering your program, they’re probably considering it against other programs that offer similar results within your niche.
What you don’t want is for your program to come across as cheap and low-quality to your potential clients. So, if your program is priced considerably lower than other similar programs in your market, then you may be giving the wrong impression that your program isn’t going to be good enough for your potential clients.
I understand that as a heart-centered fempreneur, we want to serve and give without asking for too much in return – I see it all the time. However, when we do that, we often undervalue ourselves in the process.
How are you impacting your potential clients purchasing decisions through the pricing of your program – will they clearly understand the value you give through your price?
The “Magic” Number 9
I’m sure you’re familiar with seeing prices that end in 9 … but do they actually work to bring in more sales? According to researchers at MIT and The University of Chicago, the answer is YES. Since we read from left to right, we see the “9” first and perceive it as being lower than “10.”
But, should you use this strategy while pricing your programs?
Since we’ve been conditioned to see prices that end "9" (especially ".99") as a discount or bargain, you'll want to think twice about choosing a price that ends in 9, especially if you're selling a premium program.
You want to communicate value and transformation through your pricing, and a number that ends in “0” rather than “9” will help you do just that, as prices that end in “0” are signifiers of a high-end product or service.
If you want to test out a price that ends in 9, entry level, low-ticket offers can be a great place to do that.
Limit Your Payment Options
When presenting your program pricing (on your website or in your marketing materials), I recommend limiting your payment options to 2 – pay in full, or a payment plan.
I understand that it can be tempting to offer countless options so we can have a solution that works for everyone ... but I don't recommend doing this, especially on the front end.
If you have a potential client who you know is completely invested and who really wants to work with you, I think it’s okay to present a third option on an individual basis. But keep in mind - this option doesn’t mean lowering your prices, it just means that you could offer, an extended payment plan, for example.
Having studied psychology for many years, I know that when we're presented with too many options, we experience a decision paralysis. When you offer more than 2 options (publicly), your potential clients will get confused, and as I like to say, "a confused mind always says no".
Base Your Price on Results
I recommend that you avoid basing your program's price on it's length, or what's included. So… what should you base your pricing on?
Now, this may be a big shift in thinking about the way you price your programs – but you should price your program based on results.
Of course, sharing the program length and what’s included are important things for potential clients to know before they join, but they shouldn’t dictate your pricing. Think about what you actually sell that your ideal clients want to buy – they want the result, the transformation that you offer - the value of this transformation is what your price should be based on.
If you want to go more in-depth into pricing your programs, creating your programs, and building a business that scales with ease, then I invite you to join us in the Impact Tribe! There, you’ll receive the right steps in the right order to successfully build the business of your dreams without wasting time wondering what comes next or if you’re on the right track. Learn more and join us today at the link below!