Understanding basic buying psychology will help set the right price
It’s time to get a little frank. I’ve been getting lots of questions about how to package offers. I’ve been hearing how exhausted everyone is trying to figure out this all out. Lead magnets, bite-sized offers, low level offers. It goes on and on.
You’ve probably seen lots of these $27 to $47 digital products popping up and wondered what’s the deal? The deal is basic psychology and what makes people buy. You can push back on it. You might not want to “do that”. I know a few folks who don’t want to play that game and it’s OK. They probably have a premium product that sells itself.
Why people buy products and services
You don’t go to university and expect a course to be $897. No. It’s probably $800 or $900. It’s not something the campus needs to trigger you to buy. You’re attending to get a degree or certification and the school mandates the courses you need to take to get that degree/certification, with a few options to add along the way. When we go to school, we see the big picture. What you get at the end. So, you do what you have to do to reach the end. You don’t go scrolling the internet looking at other schools and what their course are do you/did you? No. Why? You just didn’t. You paid your tuition and now you’re committed and doing the work.
So why are people attracted to these kind of numbers? Well, it is associated with getting a good deal. A good price for what you are getting in return. The perceived value.
So, is your product a deal? I am sure we can debate the value you infuse in your offers.
Is this a small offer? A free offer? A entry level offer to check you out? If you answered yes, then it is OK to offer something of value for their money. What has been your experience with it?
Once you are selling premium offers, does your price still need a 7 at the end of the price tag?
What does the market say? What research have you done to see how people respond to these numbers. Will people buy something that is $27 versus $30 even though it’s just a silly $3 difference? I guess the question is: What are you willing to risk? Risk a lower number of purchases because your ego won’t allow you to “play the game”. It is a question worth asking.
What I have discovered about these little bite-sized offers is:
It is really hard to come up with a fresh, totally new idea
If you do come up with something that feels new, either someone else has thought of it first, OR someone will love your idea so much, they will adopt it as their own. Lord knows why we label all our stuff with copyright. Which leads me to number 2. The thing here to realize is sometimes creating new is not the bees knees. So, what is the bees knees you ask? Your approach, your delivery and the results produced are. This is how you differentiate in a world where everyone appears to be doing the same thing. Trust me. So many of us do NOT do the same thing.
People are ass-hats online except your ideal client
For a few years I was so concerned about what others in my space thought of what I was doing. And, it would actually bring me down when I couldn’t get that “like” from someone that I either admired or simply engaged with all the time. That comes from my upbringing perhaps. Reciprocity was a big core value when I started this business. How ridiculous. I have made peace with this. If you don’t like my content, or feel there is no value, you are clearly not my ideal audience. Super. Glad that is settled.
I recommend, creating your offers by doing lots of client interviews. Ask them what are they trying to accomplish. This will help you create your own offers.
You only can do what you can do
Make sense? For me, I don’t always have the tech skills to create what I want or the tech knowledge to plug stuff in an automation integration. I am learning. I feel like Canva is now my best friend. I call bull shit on some of my earlier interactions with folks in agencies having me believe Canva was for hobbyist. Man. That is so not true. I am not recommending Canva for Logos – gawd…..get a professional graphic designer for that. But, for basic course booklets, worksheets and social media templates – it is the cat’s pajamas!
If creating these packages keeps you up past your bedtime or wakes you up at 4 a.m. it might be time to reach out and get some solid guidance.
A small offer doesn’t mean you are selling yourself out
Fact: Sales is a numbers game.
Yes, it’s about building relationships. Yes. Am I preaching to the choir? Maybe. However, it is also about numbers. Simple math really. If you sell 10 $4000 offers, you have generated $40,000. Not bad change.
If you sell 1,000 $47 small offers (you sell more simply because more people will risk it), you will have generated $47,000.
The $47 offer is easier to put together, probably takes zero extra time out of you once created, has less expenses potentially and has increased your audience by 1000.
Don’t let others inject themselves in your business model when they have no clue on what goes on behind the scenes. And visa versa. Don’t lie to someone about your business model and expect them to generate magic.
You don’t know what you don’t know as the CEO of your company
This is a big deal. Your clients don’t always know what they need. You’re the guide. It’s your job to figure out where exactly is their goal line. This is the debate I ask female business owners : Are you a consultant/coach or are you an order taker?
If you are the client, meaning you’re the one not sure what you need to know, then connect with a consultant who consults. A person who takes the time to get to know what your goals are, and what you are trying to achieve.
A marketing consultant can help your women-led business through a process. Then come up with a plan for YOU. The strategy is based on YOUR goals – not theirs. If you have to tell them what you want through the process, you may simply be working with an order taker. And, that could be why you are disappointed. If you need someone to help you with actual guidance, you need to let them know.
Generate interest by creating lead magnets to your products
In 2021 I created my first lead magnet I was super excited about. My QUIZ. Where female entrepreneurs can easily and quickly tick off some boxes of what they’re doing in their current marketing and sales strategy. It is completely confidential as I do not see the results. They get a score at the end. If they score high, they can feel fabulous that they’re rockin’ it and can continue kicking ass. If they score a bit low, then obviously I want them to reach out to me so I can help them. It generated the buzz I was looking for.
In the footer of my website, I have a few free pdf resources for my audience. This helps them understand who Nicole is and what I deliver on a zero risk product. I am not giving away my services. I am being strategic. There is a big difference in that too. It’s about enlightening your potential clients with a sample of what you are capable of and how you can help.
So I am not selling anything here today.
I will though share this. If you spend too much time wondering WTF to put on your website or how to set up offers that will actually have people paying you money for them, reach out.