It took me a while to comprehend it but the truth is the price of your product or service is mostly irrelevant. It’s not price that matters to your consumer, it is value. Can you see the difference between those two things?
What if I just give you prices. $5 is a low price. $100,000 is a large price. So of course a frugal person will pay $5 for something, not $100,000.
But what is that something? Is it a rubber band? $5 might feel rather expensive for a rubber band. Is it a house? You probably wouldn’t want to buy a house that was only $5! But $100,000 for a house might be a great price. It could even be too low. In our area a $100,000 house is falling apart and about to be condemned. It’s far too cheap!
So what the thing is matters and most important of all, what the value of the thing is matters. If the rubber band is made of a special material that can hold together important pieces of machinery perhaps it is worth more than $5.
The price of your product or service has to match the value that it is giving the person who purchases it. If you sell your course for $500, does it give your client $500 or more in value?
The price of your product or service has to match the value that it is giving the person who purchases itTweet
I had a client recently who was concerned that her sales funnel wasn’t converting. “Is $97 too much to charge? Is that way people aren’t buying?” she asked me.
I paused for a moment. Then I said, “How much do you charge per hour for your private coaching clients?”
“250,” she answered.
“And how many hours worth of education are in this course?”
“Well, I usually sell my coaching as a package for $3,000.”
So now that we know that, $97 is clearly a huge bargain!
That’s what the people going through the sales funnel needed to see. They needed to understand the value of what was being offered to them. It is information worth $3,000 and you can gain it for less than $100.
Once I changed the language in the funnel it began to convert. In fact, as of right now it is converting at 7%.
So if people are hung up on the price of your product or service, don’t jump straight to a coupon or discount. Think about what kind of value your offering has. Are you making it clear to your potential customers what they will gain from your product and how valuable that is?
If people are hung up on the price of your product or service, don’t jump straight to a coupon or discountTweet
Let’s take another example. There’s a device that exists only to slice grapes. Why would anyone buy that? A knife slices grapes. The value of the grape slicing device is in convenience. It is worth it for many parents (and if you have kids you’ll understand why grapes need to be cut in the first place) to have a specialized device that makes this annoying task easier, faster, and less likely to draw blood.
The value in your product might be that it is worth more money than you are selling it for. Or the value might be that it solves a problem your client thinks is worth it to solve.