It's all about giving value
Sales professionals struggle with pricing products or services that they’ve created themselves. If you are a sales-prenuer, meaning you have your own company or your own business and you’re selling a product or service that you’ve created, chances are you’ve struggled with the question of how to price your product or service. If you get this wrong, it’s going to cause you a string of bad news. You will find a series of prospects that will not purchase your product or service because you’re not comfortable yourself with the pricing of your own product or service.
Look, in the world of highly compensated sales, we typically find sales professionals who sell products or services that are existing, meaning you represent a company that’s been around for a long time. You’re a real estate agent who is selling a home that is immaculate. You are a car salesperson and you’re selling a car that almost sells itself to some extent. There are a lot of products and services out there that are easier to sell than selling yourself, selling your own product or service that you’ve created. Selling your own creation— like a consultant, a coach or a creator— is a little more challenging. I get DMs about pricing on a consistent basis. That’s because pricing is one of the most challenging things we do as sales-preneurs.
Value precedes price
If you’re not comfortable with the amount you’re going to charge your potential client, your prospect is not comfortable. And the only reason you’re not comfortable is you haven’t given out enough value. You know you haven’t given enough value to your potential clients so you feel uncomfortable asking for money in return. You see, it’s really easy right now to create a course or to create a brand or to create a blog. There is a bazillion different websites that will help you bring your ideas and products to market. But there’s only one opportunity to price yourself correctly. And in order to do that, you have to understand that value must precede pricing. So if you want to feel comfortable with what you’re going to charge a client to retain you as a consultant or a coach, to take your course or to go to your mastermind, you must have given that person so much value already that asking for money in the end isn’t even an issue. And if the price you’re going to ask for at the end is less than the value you’ve given, chances are your prospects are going to say yes.
Quantify your value
Now, it’s easy for me to sit here and tell you to give value to your prospects and you can charge whatever you want. I get that. But that doesn’t answer the question that we started with, which is how do you price your own products or services? Well, here’s a simple answer. If you’re going to give value first and you’re going to identify what that pricing structure is, you have to quantify what is the valuable information you’re going to give. What value are you going to give your prospect before they have to make a decision? Do I want to retain you or purchase your product or services?
Value comes in in three areas: Time, money, and productivity.
Can you save your prospect time?
Can you save them money?
Can you increase productivity?
If you can do one of those three or all three, selling your product won’t be a problem. Pricing your product won’t be a problem. The only reason it’s a problem is you’re not comfortable with the amount of value you’ve given yet. I have seen countless courses and coaches and consultants put one blog up, one social media post, and ask to pay thousands of dollars to get the rest of their information. Look, it doesn’t work that way anymore. You have to give valuable information that is applicable first. Is it valuable in the area of time, money and productivity?
Show don’t tell
Don’t just tell someone your product can save them time, money or increase productivity. Don’t say, hey, I can do this for you. Show them. Show them how you can save them time. Show them how you can save the money. Show them how you can increase productivity. If you start giving valuable information first, pricing your own product or service afterwards is easier. You will feel more comfortable and more confident with the pricing because you know you’ve already given so much value to them that they almost expect to retain you in your services.’