You’re in the home stretch of your presentation ~ the close. You’ve talked about the features of your program, told the audience the results they’re going to get, and the staff has just passed out the order forms.
Now, it’s time to answer an important question for the audience: Is the price right?
“Right” is not synonymous with “cheap.”
Find the Sweet Spot
“Right” is that sweet spot, the price point at which the product or program sells the best and brings you the most returns.
To find that sweet spot for your product, I encourage you to aim high initially, and then experiment. Raise and lower the price, until you find that magical, maximum price point that sells great.
If you want to speak at bigger conferences, you definitely want to aim high in your pricing. Promoters, who typically get 50% of your sales, just won’t make enough money if your packages are priced low, say at $49 or $149.
To make it worth their while, promoters are looking for packages that cost $800, $1,000, $2,000, or $5,000.
Of course, if you’re just starting out, smaller organizations will be happy to have you speak with your lower price points. And you can still make a very good income, while you gain experience and work up to those higher figures.
Discount or Value-Add?
During your presentation, you want to offer an incentive for your audience to buy now. One approach is to offer them a substantial discount if they purchase that day. Another is to add extra value through bonuses, creating a special package just for them if they purchase at your talk.
I have done it both ways, and, frankly, I don’t like discounting.
There are times, however, when it might be the right choice ~ for instance, if you’re talking to an audience with a strong poverty mindset.
If you are going to discount, 20% with some added value is probably the best place to be. I never would go beyond 30% in any case. Even with bargain shoppers, a 50% or 60% discount sets up a subconscious contradiction that says the product must not be very good.
So if you discount too much ~ or set your initial prices too low ~ you could actually lose sales you would have gotten if you’d raised your own bar a little higher.
Rather than discounting, I strongly prefer to add extra value to what I’m selling. That way the price seems like a bargain because they’re getting so much more than what they’re paying for.
For instance, I might add a book, a special report, a 15-minute consultation or another program: “If you purchase The Science of Getting Rich here today, I’ll give you a copy of Just Believe, which is a $195 value.” The audience will really appreciate that.
What About Cafeteria Pricing?
Cafeteria-style pricing is where you’ve got six, seven, eight, or nine products for sale at your table in the back of the room. The audience gets to pick and choose among a $97 program, a $12 book, a $597 program, etc.
Some people, including my mentor, do well with cafeteria pricing, but I don’t recommend it.
You’ll actually make more money if you bundle all of those same products into one or two packages. You could have one with a higher price point of $1,400 or $1,500, and another with a lower price point of say, $700 or $800.
The Bottom Line
Whichever approach you use, don’t forget that the audience is looking for a result, and if you’ve followed my steps to the tee, they’re going to be willing to pay for it.
Ask yourself: what is the value of the transformation I’m offering? What will it save them in time and money? What impact will it have on their lives?
Once you have a genuine handle on that, set your price accordingly.