Written by: Tarryn Reeves, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
In this article, I will walk you through how to price your services to generate more sales. Now for those of you who know me, you will know that I love structure and systems. So, I will share with you a system that you can use over and over again in your business to effectively price your services and make more money!
Brand positioning for generating more sales
When it comes to pricing, people need to recognize that they receive more value from your service than what they are actually paying for it to feel satisfied. This is the key thing that needs to occur in your customer experience for them to walk away and sing your praises to everyone they know. Free marketing and social proof are priceless.
Another aspect to consider is the psychological response that happens when someone comes into contact with your pricing. If we see something as being cheap, then we question its quality. If we see something as expensive, then we believe it to be of higher quality. If your service has loads of value and solves a problem for your ideal client, don’t be scared to push that price tag up! Do not damage the position of your brand by pricing too low.
Another reason you should be pushing that price tag up is because when you make more money, you can provide a better quality service to your clients. When you are barely making a profit (or worse, none at all), you are going to be hard-pressed to provide your clients with a red carpet experience, and your business will get lost in the noise and competition.
The value ladder
Make a list of the different services you offer. You want to create a ‘value ladder.’ This is basically a list of your services in price order from lowest to highest.
The majority of the people will come into your business via the lowest tier offer or freebie. Some will go straight to the high end, and some will come into the middle tier. It is good to have clarity around all your different offerings so that both you and your clients know what is on offer and where they fit and where they are ideally headed (up the ladder). At each offer stage, you warm your client up a little more and nurture a relationship, which in turn increases their know-like-trust factor of you and how your service solves their problems.
CEO smarts
If you have too many services, then I encourage you to try to narrow them down. Having too many options causes overwhelm and confusion, and confused people just don’t buy. Try to bundle up your services or work out a structure for your services so that you can narrow down your offers and make the decision-making process for your customer easy! In a world that is so fast-paced, we all love easy! Remember: the more value you pack into these bundles, the more appealing the offer and the happier your clients will be.
Now let’s be practical. When looking at the pricing of your services, you need to consider your overheads. I’m talking about all the costs of running your business, such as your website hosting, your email provider, your team members, your rent, your welcome packs, your internet bill, Facebook ads etc.
If your expenses are higher than your conversions, then you are quite literally throwing your money away. Know your numbers! Your business will not thrive if you do not know them.
Powerful pricing generates more sales
I recommend not pricing your services in round figures. I mean that it is better to price your services at $207 instead of $200. Why? There are loads of studies out there that show higher conversions when pricing is done this way. It looks like a psychological process goes on in your customers' minds when they see pricing done this way. Perhaps they feel that you have made more of an effort to be accurate, but who knows, really. The data is there, and who am I to argue with the numbers.
Another interesting thing I have come across is that including the numbers 7 and/or 9 in your pricing also have a positive impact on your marketing. Again, there are lots of studies done on this, and you can check some out here and here.
The biggest brands all do it, and it obviously works for them!
At the time of writing this, these big brands are pricing like this:
Apple - iPhone 12 - $1,199
Nike - Air Max 20 - $170
Jay Shetty - Certification School - $675
MindValley - $99
So now we have gone through the system for pricing your services, I encourage you to implement it. Go back and review your current pricing structures. If you need to put up your pricing and are worried about upsetting your current clients, why not offer to keep them on the old pricing for a period of 3 months as a thank you for being such a valued part of your business. All new clients coming in go on the updated pricing structure.
If you need support in packaging up your services, and structuring them to be irresistible to your ideal clients, then I can support you to do that. I have helped hundreds of clients to package up their services into high-end offers that sky-rocket their income. I did it for my own business and doubled my income within a single year.
Book your Business Freedom Call with me today to find out how.
Tarryn Reeves, Executive Contributor Brainz Magazine
Tarryn Reeves is the CEO and founder of Four Eagles Publishing and The Publishing House Concierge. She works with high level entrepreneurs to create best-selling books that act as lead magnets that grow their business with ease. Her specialty is creating an amazing reader experience that converts book sales into clients.
She is an international best-selling author and has a global client base. She resides in Australia with her husband and daughter. When she isn’t creating best-sellers she is scouring the local book shares to add to her collection.
