Module 10: Determine Your Pricing Strategy
Before you dig deeper into marketing your signature program, you need to decide on a price which will enable you to reach your financial goals.
In this module you’ll be reviewing your revenue targets and choosing the price of this initial program.
As we mentioned at the beginning of this course, your signature system may become the core of your business and help you achieve 6, or even 7, figures. You can certainly use it to boost your income considerably and maybe take your business in a new direction.
Of course as a new product, it needs to be bringing in the income you want right now. But what is that income?
Pricing is a challenge for most entrepreneurs and you might need some time to get the price right. But you need to start somewhere.
Signature systems are often sold as part of a medium to high ticket offer, since more intensive delivery methods are the best way to get results, and your core program will be in this bracket.
How you price it will depend to a certain extent on the delivery method you chose in module 7. Usually the more time you provide to customers on the program, the higher the price; the more self-study and do-it-yourself elements, the lower the price.
You should refer back to the competitor research you conducted in a previous module and check out the price points of your competitors’ programs. This will give you an idea of how other people are pricing similar programs, but don’t be tyrannized by their decisions. You don’t have to copy their prices but you do have to be happy with your own.
Your price needs to reflect the value of the outcomes as well as covering your costs and adding an element for profit. Choose a price that does all that. Then go back to your revenue goals and calculate how many signature programs you need to sell at that price to achieve your targets. Make adjustments if your figures don’t work, either to the price of your signature program or your revenue targets.
As we’ve mentioned before, an offer that involves a lot of your time will be a higher priced item. Your core signature program will be in the medium to high price bracket.
A one-off payment of this amount might be difficult for some people, but if they’re a good fit for your signature program you don’t want them to miss out.
Think about offering monthly payment plans or a three-pay offer to spread out the cost for these customers. You need to increase your overall price to take account of what is equivalent to an interest-free loan.
For people on payment plans, you may want to restrict access to some features or drip-feed content on a month-by-month basis.
Only offer plans that makes sense to your revenue model and that you feel comfortable with.
- Your signature system can boost your income considerably and take your business in a new direction.
- Make sure your price fits your revenue model.
- Quick Win: Revisit your monthly revenue targets, both cash flow and ideal
- Price the core offer for your signature system and check against your revenue targets using the cash flow template in your Action Guide.
- Decide if pricing plans are appropriate for you.