Yesterday I went live on video for an hour or so to advise my Unf*ckwithable Girlfriends on their online business endeavors.
Aaaaaannnnndddd one of the things that came up was around pricing:
Do I really need to have three packages / tiers / levels for selling my online course?
And my answer was HELL YES—if it’s plausible and makes sense.
The reason is because instead of telling someone, “Hey, you can either buy this or not, JON SNOW,” you’re saying, “Hey, which one of these three do you want to buy, babe?” (P.S. You so fine in that crow outfit.)
The question changes from whether or not you want to buy it, to which one—and that shift in frame can make an important difference. Secondarily, however, it’s important because it allows you to test for price sensitivity. For example, which package is selling the best? Is it your most expensive one? Because if it is, that means it’s not expensive enough.
A rule of thumb I like to live by:
If more than twenty-five percent of my customers or clients are opting for the most expensive thing I sell, the price obligatorily needs to be raised.
Why?
Because if the majority of my sales are coming from the most expensive package, then that means that I don’t have a premium price—I’ve got a mid-range one.
And mid-range prices are great—until you realize that there are a lot of folks who want to pay for the best of you, not merely the average.