Do feel like your products or services are under priced? Do you ever hear yourself say things like “I can’t charge that much because I don’t have a degree or I haven’t been doing this long enough yet.”? Those are dead giveaways that your products or services are under priced and you need to figure out how to increase the value of your products or services.
Remember that when people make a decision based on price, you are selling your services with a commodity mindset. Commodities compete on price. You should be competing on value. Here are a couple of things you need to pay attention to when increasing the perceived value of your programs.
Increase the price
I see a lot of coaches uncomfortable with pricing. I understand. It’s easier to price a physical product. Setting your coaching fee can be tricky because while your costs are lower, your time is a limited yet elusive commodity.
When I first started coaching I had no idea what to charge, but my coach gave me guidelines. Over time as my confidence and skills increased and my clients started seeing real results, I raised my prices and my clients renewed because they could afford it.
What if I told you that you are actually hurting your business by setting your price too low?
Listen, consumers today know that you get what you pay for.
A client of mine was offering to map out a complete, automated marketing funnel for $197. Even though she knew it was worth much more, she was too afraid to set the price any higher. How many people do you think snatched up this “great” deal? Zero! People don’t trust offers that sound too good to be true! She raised the price to $997 and immediately began to sell packages regularly. If you don’t value your product or service, others won’t either.
Increasing the perceived value
The perceived value of a program is the value that a consumer assigns to a product or service, what they feel like it’s worth to them. Here are some ways to increase the perceived value of your service.
- Testimonials can boost your perceived value. It’s hard to brag your business up as effectively as a satisfied customer. Testimonials are evidence that you deliver what you promise; this produces trust and confidence in your product or service increasing your perceived value. On a sales page testimonials with images bring even more value.
- Bonuses increase your perceived value. Add additional content to their purchase. Tack on templates, tools, checklists, etc.
- Benefits not features, increase value. Instead of putting the focus on how much your program costs and all the features that come with it, focus on the benefits that your program will provide for those who purchase it. So will they lose 20 pounds or make more money or mend a relationship with their mom – those are benefits.
Need help with pricing your program? That is one of the topics I covered in an online training called “How I Made $100K with Info Products” Click here to get instant access to the video recordings.