Badass Is The New Black (Season 3) Episode #28 3 Things To Consider When Pricing Your CourseJul 20, 2021
How do you price your online course offering? What factors do you consider when pricing your course? Krissy Chin tackles these questions and more in this episode as she takes on the thorny issue of price. Krissy discusses the factors that will affect your price point and how the customer’s needs will impact your pricing. We also examine several real-life examples of course pricing. Listen in and learn more about course pricing and how to do it.
Concept to Cash Masterclass: www.thekrissychin.com/masterclass
Build a blissful business https://www.thekrissychin.com/build-a-blissful-business
The Scalable Podcast System www.thescalablepodcastsystem.com
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3 Things To Consider When Pricing Your Course
Knowing what to price your course can be a huge challenge for coaches, trainers and course creators. People are scared that if they price it too high, no one will buy or they're new to the industry and think that they need to price it low because they're a new coach. This is a new course for them but that is not the right strategy to have when it comes to pricing your course. I don't want you pricing out of fear or the belief that you aren't worth what you want to sell it for. Instead, I want you to price your course because there is intention and strategy behind it. We are going to walk through this in this episode as I share three things to consider when pricing your course.
Before we dive into the topic, if you are at the beginning stages of your business, you haven't had any kind of formal training on entrepreneurship or building a profitable business online, then I want to invite you to a masterclass called Concept to Cash. In this masterclass, I will teach you my four-step framework for building a profitable business online that you love. It's free. You can sign up for this at TheKrissyChin.com/masterclass. Let's dive into the topic, three things to consider when pricing your course. I want you to feel confident about what you are putting out there and make sure that you are pricing it for a win-win scenario. What is that win-win scenario? It's when you get paid, and your customers are ecstatic with what they get for what they paid.
Pricing Your Course: At What Stage Of Their Journey Is The Customer At?
The first thing to consider when pricing your course is where your customer is in their journey. If they are at the beginning stages of their journey, then a lower-priced course may be more in line with where they are and a little bit more unsure as to where they're going or if they want to invest. Think about someone at the beginning stage of something. They're unsure about themselves, lack confidence, not sure if they'll be able to get the results that were promised to them and are less willing to invest a lot of money into something.
The price of your course ultimately lands on what your customers are willing to pay to get the result that you're helping them achieve.
I'm not saying that's impossible but it's something to consider when pricing your course. Thinking about your ideal customer at the beginning stage, "Is this person a little bit more timid to open their wallet? Do they need more trust built between you?" Beginner courses usually are under $300. You could go up to $500 but typically, they're $97, $197 or $297. Think about your course and who your ideal customer is for this course that you've created and then ask yourself, "Where is this person, my ideal customer, are at in their journey? Is this going to affect how much they want to invest?"
My entire Krissy Chin coaching business revolves around someone who wants to build a business online and sell courses or have a membership site. I need to ask myself when I'm looking at courses that I create and offer, "Is this person at the very beginner stage are trying to decide and launch their business online? Have they been working towards this business online for a while, been generating an income and ready to take it to the next level?" The willingness to invest can be different at different stages. You might get a lot more people through the door at the beginning stage if you have a lower-priced offer.
The goal is to get someone through that door to build more trust. In the beginning, they might not know you. Maybe they just saw this video on YouTube and have no idea who you are. Through your free content, you're building trust. Also, there's that smaller-priced course at the beginning that you can offer them so that they invest and then build more trust with you. As they continue on in their journey and move up through your product suite, they are willing to invest more until they say yes to that next thing that you have to offer, where your customer is in their own journey with the problem that you're solving.
Where Does Your Product Fit?
The second thing to consider when pricing your course is where your product fits in your product suite. If you want to learn more about a product suite then you can go read an interview that I did with amazing Amanda Kolbye. This was season 3 episode 26, where we talked about a product suite and creating a signature product. If I said the word product suite and you were like, "What is that? I need to know more," then after this, go read that episode. Let's talk about where this course is. Is it the first product in your product suite? Your product suite is everything that you offer. Is this course that you are trying to price right now is at the beginning, middle or at the end of your product suite, similarly to where someone is in their journey because our product suite is designed and developed to follow someone's journey?
At the beginning of our product suite, they enter a certain stage in their journey. As they move on through your product suite, they progress in their journey. There's always something for them to purchase next. You can also ask yourself, "What am I offering after this course?" We want to make sure that there will be that next step in their journey or purchases so that they will keep paying you. Even though this is a course and it's a one-time purchase, we don't want one and done. We want to have repeat customers so that you can generate not just $200 off your $200 course but $2,000 off of that customer over time because they have purchased one course and the second course, done a mastermind with you or joined your membership.
Let's take a quick look at the model of a low-ticket offer. A low-ticket offer funnel is where you have a low ticket. The funnel is a three-part thing. You have the first little mini-course that you offer at a low price point. Typically, $7 to $47. When someone says yes, they click Buy. They want to buy that. You offer them an upsell. That's that next thing like, "I need to have that now. Also, it's going to make my life easier." Once they purchase that, you send them to an offers page, a one-time offer that offers them the next thing that they're going to want. That's higher-priced, $77 to $147. You've turned this one low-ticket price into a $150 or $200 offer because you've offered them three things right off the bat. They're all lower price point items.
The idea behind a low-ticket offer is not necessarily to generate profit. However, there are some people out there that are generating a profit from a low-ticket offer funnel, but the main purpose and what I see most commonly is that these funnels are set up and designed to generate qualified leads that are willing to spend money and are going to be ideal customers for that higher ticket item that you have for them next. That is where you're going to make money and generate profit in your business. The strategy is to price it low, get qualified leads in the door because the intention is that they will then buy your higher ticketed course, a $400, $500, $1,000 or $5,000 offering that you have. Because we're trying to draw in people that are going to be great leads for our higher course, we offer a ton of value at a low price point to get them into our funnel.
This is a scenario where we could offer a ton of value and transformation could be huge but we are pricing it very low because it's functioning as that lead generator for our next offering. However, the reason that we charge for this is because we want to attract qualified leads that will open up their wallet. We don't just want free seekers here. What's the course you're creating? Is it a lead generator for a higher-ticketed, higher price point course or is this your course? If the answer is yes, it's going to help you draw on qualifying leads for that next big thing then you price it at a lower price point. If this course is your big kahuna, second offering or signature course, then you have a higher price point. It's $500 to $2,000 or anywhere in there.
What Result Do You Provide
The third thing to consider when pricing your course is the transformation or the result that your course will provide. To keep things super simple, think of it as, "Little transformation, little price point. Big transformation, bigger price point." For example, a weekend workshop that helps someone. Maybe you're teaching to get clarity on their next offering. By the end of the workshop, they're going to have clarity on their next offering. It's a quick win but it's a little transformation. Maybe you're charging $49 or $7 for that. Low price point, whereas opposed to, if you have a course that's going to teach you how to create a complete low-ticket offer funnel then that has a much bigger transformation. They're going from no funnel to complete funnel at the end. That's going to be a higher price point.
What's the transformation? Smaller transformation, smaller price point. Bigger transformation, bigger price point.
This is something else to consider, "What is the transformation?" I have given you an example of sometimes mini-courses having big transformations but we've priced them lower because it's someone at the beginning stages of their journey or it's the entry-level of a funnel series that we're doing. It doesn't mean all three of these things have to be in line. We're considering these things when figuring out how to price the course. Little transformation, small amount. Big transformation, much more costly because there's a bigger win. The price of your course ultimately lands on what your customers are willing to pay to get the result of your course that you're going to help them achieve. If you're offering a mini-course that will give someone a small but quick win, this may be more effective at a lower price point. What's the intention here? Are we offering this to get them in the door or is this the big kahuna?
Analyzing Your Price Point
Your signature course that will generate the majority of the profit in your business is likely going to be a higher price point. I'll give you a real-life example in my business, Build A Blissful Business. This is a course that I created. It offers a big transformation and helps someone set up the foundation of their business and brand so that they can build a profitable business online. That's a huge transformation, going from essentially no brand and business presence online to having tons of clarity in your messaging, knowing exactly who your ideal client is, having all of your brand visuals set up, knowing who you're trying to attract in, getting set up online and social media so that you attract your customer. By the end of this course, the foundation of your business and brand is set up.
Who is the ideal client here? The ideal customer or client is someone in the beginning stages of building their business. It's someone who has never had training on building a brand or business online. There are many experienced entrepreneurs that have leveraged Build a Blissful Business. Most of them either wanted to rebrand, so they were like, "I'm going to go through this course," or they are new to offering a digital product. They've never offered a digital product before, so they take advantage of this course. "Let's go back to the foundations of building your brand and business, see if things are still aligned and how I can modify things to build this business that I love and is aligned with the lifestyle I'm working towards."
It was developed for people who are at the beginning stages of their business and want to build this foundation to build and scale online. While it does offer a big transformation, I have it at a lower price point because one, they're at the beginning of their journey and two, it's at the beginning of my product suite. It's the entry-level thing that gets someone in, gives them a huge win, builds lots of trust with me so that they can move on to the next thing, find more wins and grow their business bigger. I was considering factor number one, “Where is my customer at in their journey?” Factor number two, “Where is it in my product suite?” That was trumping this third one which is the transformation.
Let's look at another example. I have a mini-course for podcast hosts that do interviews. I teach them a system that they can implement into their podcasting process to where they can show up, record and be done. If you are a podcast host out there, you know how many hours upon hours it takes to get a good podcast up and running online on the interweb for someone to listen to. It's more time-consuming than you thought when you started a podcast. I'm helping podcast hosts get back 10 to 20 hours of their life by teaching them this system that they can implement into their podcasting process. They're going to gain time back which for some people is valuable. How much can you do in 10 to 20 hours? You could create a new, small offering in that time.
I priced this course at $37, The Scalable Podcast System. It's a super low price point. The results that my students get are amazing. The feedback, reviews and testimonials that they've given are amazing. There's a huge transformation there, but I'm considering, “Where is it at in my product suite? What is the intention of the course?” The intention of the course is to bring in generate leads. This is all insider knowledge. You guys are getting the full scoop behind the scenes. I'm not scared to share strategies with you that I use in my business because they work. I want you to implement these strategies into your business so that it works for you. I'm an open book sharing all of my secrets here.
After they come in and generate that lead, there's another offering called The Profitable Podcast Bundle. This offering is priced higher than The Scalable Podcast System. Why? Because the result or the transformation that someone gets is seen as even more valuable. It has a bigger monetary value to it because I teach how to monetize and generate income from their podcasts by leveraging advertisements. This is going to be a direct correlation with the amount of money that they bring into their business. I suppose person A and person B could argue that one transformation isn't bigger than the other but from a monetary aspect it is more. That's something else you consider. Does your product help someone make money? That's not one of the three that we were talking about.
Some other amazing examples are one of my mentors, Amanda Genther, who's awesome sells a low-ticket offer. It's called Sales Page in a Day. If you've ever written or designed a sales page, it can take a lot of time. The fact that you get this template already designed for you, the copy is written and you have to plug and play for $37 is huge. You're getting it done in one day versus a week. It is a great transformation but compared to the next offering that she has, which is the low-ticket funnel formula program that she has her course. You'll have your low-ticket offer funnel created by the end, going from no funnel to a complete funnel, launched to making money.
That transformation in comparison is huge, from just having a sales page created to having a complete funnel that your sales page gets plugged into. That is a much higher price point for that bigger transformation of having a complete funnel created versus the sales page of that funnel. That program was what I use to create my low-ticket funnel. It's a great example of a smaller transformation with a lower price point to a bigger transformation, a higher price point. The intention is to bring in and qualifying leads for that next offering, but it also does follow this thing that we're considering, what's the transformation? Smaller transformation, smaller price point. Bigger transformation, bigger price point.
Bringing It All Together
At the end of the day, regardless of number one, where are your people in their journey? Number two, where is it in your product suite? Number three, how big of a transformation are you offering? You need to effectively communicate the benefits of your course or product and you can provide to someone. If you aren't doing that then it doesn't matter what you price your course, low or high. People aren't going to see the value. They're not going to buy it. I don't care if it's $7. If you're not effectively communicating the benefits that someone can have by purchasing what you have to offer, they're not going to buy it. These three things that you consider that we've talked about will help you price your course effectively in your product suite. As always, I appreciate you reading. Until next week. Get out there, take imperfect action every single day and take that next step in your journey. We'll see you later.