No one has a perfect course pricing strategy

Because pricing isn’t rational.

Here’s 5 myths about pricing, and the counter-intuitive ways you should think about it instead:

Myth 1: There’s a perfect price that mops up every cent in the market.

Reality: Different people will pay the same price for the same thing.

By changing prices, you change the customer you attract. You don’t just take more from the same people.

Price chooses the customer.

Myth 2: The course production needs to be perfect to charge a high price.

Reality: The course needs to solve a big problem to charge a high price.

Some of the most expensive courses I ever bought were just a voice over a powerpoint presentation.

It’s the outcome that matters

Myth 3: Higher prices means fewer customers.

Reality: Your economics teacher was wrong.

Price cheap and you’ll dent the prospect’s confidence.

Become the most expensive and you’ll attract the segment who want “the best”.

Humans are NOT rational creatures.

Myth 4: My price reflects my confidence in the product.

Reality: The price that gets paid reflects your customer’s confidence in the product multiplied by the size of the outcome.

That outcome is different for every customer. This is the frustrating challenge of pricing.

Myth 5: A high priced course needs a lot of content to justify the price.

Reality: Customers who will pay a lot have a problem they want solved now.

20 hours of video is a barrier, not a feature.

TL;DR Summary:

  • Choose your customer.
  • Understand the value of the outcome to THEM
  • Price accordingly.