Worried about raising my prices

16 replies
I have a pretty simple goal, and that is to make 3K per month from my website.

Every month so far since December I have been making about 1K per month. My income is entirely comprised of my $47 course which is essentially a members-only area of the site. I launched this "course" about a year ago, and I have since more than tripled the amount of content that it has in it.

I have made about 90 sales total, with most of the sales occurring within the last 4 months. I believe this is due to the fact that people may not have been considering it worth $47 before, but now that it has a lot more content, they think it's worth it. Also, I've only had to give out 2 refunds so far. I'm selling about 10 to 20 copies per month.

I also have a $9 eBook which sells about 30 copies per month. I'm thinking about raising this to $15 as well...

My email list is very small (under 500), and I don't yet even have an autosponder set up yet. I'm honestly not giving the list nearly as much attention as I should be.

All of my sales are from direct website traffic, and most of my traffic comes from YouTube and Reddit.

Considering my goal is to make 3K per month, which is the same as $100 per day...it would make sense to price my course at $97...so every time I make a course sale, I hit my goal for the day (almost). However, I'm nervous that I will miss out on a bunch of potential sales if I price it too high.

Does anyone else have these same types of fears? Should I just do it and see what happens? What if people buy at $97, then see that I lowered my prices again if it doesn't achieve positive results?

Looking forward to hearing your replies!

Thanks!
#prices #raising #worried
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  • Profile picture of the author Jason Kanigan
    You have several "thought things" floating around in your head here. At least you're aware of them...that's a good starting point.

    Money Tolerance--what you think of as "a lot of money"--is a limiting belief, and I believe it is THE key limiting belief...an output of Identity, and results in most of what you see in the reality around you. Who you hang around, where you live, the car you drive, where you eat, where you shop and so on.

    BUT

    there's more going on here than Money Tolerance issues.

    You've got something working.

    Don't mess with it.

    Not yet.

    90 sales, 500 person list...not enough to start making big changes. You'll create an earthquake in your world if you do that, and it won't be good.

    There are only three ways to make more money:

    1. Increase the number of new customers

    2. Increase the Lifetime Value (LTV) of your customers

    3. Increase the frequency of purchases of existing customers.

    IMO what you should be concentrating on are #2 and #3.

    You could do this by raising prices, but as I said I don't think you have a sufficient baseline yet to start turning dials and flipping switches in your business. Leave those things as they are.

    Increasing how often they purchase, though? That you can experiment on without messing with existing flows.

    What can you do regarding a continuity offer? They've already bought from you. I hope you're collecting testimonials, surveying them for what they want next...considering a membership site perhaps. Maybe group coaching. What can you give them as an ongoing offer/solution that they value?

    What else can you offer them in addition to the course/ebook? How many people who buy the course also buy the ebook? And vice versa? What can you do to raise these figures?

    A few years back I had the realization that I was limiting the amount of money people were giving to me...what I was offering and the prices I set those offers at determined the income. Think about it like a pinhole in a black sheet of paper: only that amount of light can get through.

    I tore a much larger hole in that sheet.

    Right now you are allowing in $47 and $9 bits of light through that black paper. The particles can come in only one at a time. What can you do to make those holes bigger?
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    • Profile picture of the author Sid Hale
      Great advice so far, from both Jason and Steve. Of course, you've been around a while and probably already knew to expect that from them.


      Originally Posted by Jason Kanigan View Post

      Don't mess with it.

      Not yet.

      90 sales, 500 person list...not enough to start making big changes. You'll create an earthquake in your world if you do that, and it won't be good.
      Doubling your price will probably cut your unit sales by more than half (i.e. to less than 15 copies per month), unless you also do something to a) increase your reach, or b) increase your conversion rate.

      You mentioned your list size, but over a very short period of time your conversions to that list will decrease. You will need to grow your list exponentially (and consistently), just to maintain current income levels.

      Increasing your conversion rate is another way to raise your income level, but that is still dependent on how many eyeballs you can get to your offer.

      Originally Posted by Jason Kanigan View Post

      A few years back I had the realization that I was limiting the amount of money people were giving to me...what I was offering and the prices I set those offers at determined the income. Think about it like a pinhole in a black sheet of paper: only that amount of light can get through.

      I tore a much larger hole in that sheet.

      Right now you are allowing in $47 and $9 bits of light through that black paper. The particles can come in only one at a time. What can you do to make those holes bigger?
      or...
      punch more pinholes into the paper.

      Have you set up an affiliate program? It's not a panacea, but just one more strategy you can add to the other suggestions to increase eyeballs/sales.
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      • Profile picture of the author Bkelly301
        Originally Posted by Steve B View Post

        Increase your product offerings. Add to your $47 product so that the new "advanced" or "pro" version is worth $97. Many continuity sites have varying levels of memberships depending upon what the member decides to purchase.

        You've made a good start . . . now is the time to expand your offerings a little. It's nice to have something for everyone, so to speak, even the newbies ... varying price points that fit into most everyone's budget. At some point you'll probably want to add a $300-$500 product. You've heard the saying "climbing the ladder" referring to funnel progression?

        Keep up the good work.

        Steve
        Different pricing structures. I like it!

        Originally Posted by Sid Hale View Post

        Great advice so far, from both Jason and Steve. Of course, you've been around a while and probably already knew to expect that from them.




        Doubling your price will probably cut your unit sales by more than half (i.e. to less than 15 copies per month), unless you also do something to a) increase your reach, or b) increase your conversion rate.

        You mentioned your list size, but over a very short period of time your conversions to that list will decrease. You will need to grow your list exponentially (and consistently), just to maintain current income levels.

        Increasing your conversion rate is another way to raise your income level, but that is still dependent on how many eyeballs you can get to your offer.



        or...
        punch more pinholes into the paper.

        Have you set up an affiliate program? It's not a panacea, but just one more strategy you can add to the other suggestions to increase eyeballs/sales.
        This sounds like very solid advice. I appreciate it!

        Originally Posted by Jason Kanigan View Post

        You have several "thought things" floating around in your head here. At least you're aware of them...that's a good starting point.

        Money Tolerance--what you think of as "a lot of money"--is a limiting belief, and I believe it is THE key limiting belief...an output of Identity, and results in most of what you see in the reality around you. Who you hang around, where you live, the car you drive, where you eat, where you shop and so on.

        BUT

        there's more going on here than Money Tolerance issues.

        You've got something working.

        Don't mess with it.

        Not yet.

        90 sales, 500 person list...not enough to start making big changes. You'll create an earthquake in your world if you do that, and it won't be good.

        There are only three ways to make more money:

        1. Increase the number of new customers

        2. Increase the Lifetime Value (LTV) of your customers

        3. Increase the frequency of purchases of existing customers.

        IMO what you should be concentrating on are #2 and #3.

        You could do this by raising prices, but as I said I don't think you have a sufficient baseline yet to start turning dials and flipping switches in your business. Leave those things as they are.

        Increasing how often they purchase, though? That you can experiment on without messing with existing flows.

        What can you do regarding a continuity offer? They've already bought from you. I hope you're collecting testimonials, surveying them for what they want next...considering a membership site perhaps. Maybe group coaching. What can you give them as an ongoing offer/solution that they value?

        What else can you offer them in addition to the course/ebook? How many people who buy the course also buy the ebook? And vice versa? What can you do to raise these figures?

        A few years back I had the realization that I was limiting the amount of money people were giving to me...what I was offering and the prices I set those offers at determined the income. Think about it like a pinhole in a black sheet of paper: only that amount of light can get through.

        I tore a much larger hole in that sheet.

        Right now you are allowing in $47 and $9 bits of light through that black paper. The particles can come in only one at a time. What can you do to make those holes bigger?
        Very similar to what Steve said as well...you all have me thinking about incorporating different pricing structures. Thanks for all of this!
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  • Profile picture of the author Steve B
    Originally Posted by Bkelly301 View Post

    I'm nervous that I will miss out on a bunch of potential sales if I price it too high.

    Increase your product offerings. Add to your $47 product so that the new "advanced" or "pro" version is worth $97. Many continuity sites have varying levels of memberships depending upon what the member decides to purchase.

    You've made a good start . . . now is the time to expand your offerings a little. It's nice to have something for everyone, so to speak, even the newbies ... varying price points that fit into most everyone's budget. At some point you'll probably want to add a $300-$500 product. You've heard the saying "climbing the ladder" referring to funnel progression?

    Keep up the good work.

    Steve
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  • Create a consulting or a coaching program showing people how to do what you did, create a valuable product, launch it, get 100 - 200 sales on their new products, and deliver them to their outcome just like you were able to do. Get them results.

    Charge $1K - $3K for 6 - 8 weeks of consulting, or coaching - create a funnel (squeeze page & money content ie: webinar, case study, salesletter) attract leads & prospects (or tap into all of those customers you already have), get them onto a phone call with you, listen to their problems, ask them strategic questions, tell them how you can help them, offer them your consulting or coaching service, enroll them and provide premium support inside of a private area (forum, FB group, LinkedIN group, Skype group, etc.), provide weekly Q&A sessions to the entire group at 1 time, get a handful of clients per month (3 - 5 clients).
    BOOM. Income goal reached in the most effective way with the results, list of buyers, and resources you currently have.

    I hope that helps G.

    All the best,
    Michael
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  • Profile picture of the author ryanbiddulph
    Hi BK,

    What does $3K a month really mean to you? Comfort? Security? Freedom?

    You can have that now with 0 dollars.

    Generate the emotions. Then, you allow in ideas, inspired actions, the right folks and circumstances to enjoy the ride and make money, and even better; you will base your pricing on your worth, not on a little goal you thought of....because we ALWAYS undershoot when using our mind to pick money outcomes.

    Ryan
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    If you want to become a full time blogger you can buy my eBook here
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    • Profile picture of the author Bkelly301
      Originally Posted by Thesecret2marketing View Post

      Create a consulting or a coaching program showing people how to do what you did, create a valuable product, launch it, get 100 - 200 sales on their new products, and deliver them to their outcome just like you were able to do. Get them results.

      Charge $1K - $3K for 6 - 8 weeks of consulting, or coaching - create a funnel (squeeze page & money content ie: webinar, case study, salesletter) attract leads & prospects (or tap into all of those customers you already have), get them onto a phone call with you, listen to their problems, ask them strategic questions, tell them how you can help them, offer them your consulting or coaching service, enroll them and provide premium support inside of a private area (forum, FB group, LinkedIN group, Skype group, etc.), provide weekly Q&A sessions to the entire group at 1 time, get a handful of clients per month (3 - 5 clients).
      BOOM. Income goal reached in the most effective way with the results, list of buyers, and resources you currently have.

      I hope that helps G.

      All the best,
      Michael
      I like this suggestion, but I'm not in the IM niche so I don't think I'd ever be able to charge that much for coaching. I do like the overall strategy that you are suggesting though!

      Thanks!

      Originally Posted by ryanbiddulph View Post

      Hi BK,

      What does $3K a month really mean to you? Comfort? Security? Freedom?

      You can have that now with 0 dollars.

      Generate the emotions. Then, you allow in ideas, inspired actions, the right folks and circumstances to enjoy the ride and make money, and even better; you will base your pricing on your worth, not on a little goal you thought of....because we ALWAYS undershoot when using our mind to pick money outcomes.

      Ryan

      Well I'm right where I wanna be in life right now as far as work goes. I quit my job 6 years ago, and I have been a full time musician ever since.

      3K would cover all my bills plus give me spending money. That is why it is my goal.

      Thanks for the reply!
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  • Profile picture of the author GordonJ
    Originally Posted by Bkelly301 View Post

    I have a pretty simple goal, and that is to make 3K per month from my website.

    Every month so far since December I have been making about 1K per month. My income is entirely comprised of my $47 course which is essentially a members-only area of the site. I launched this "course" about a year ago, and I have since more than tripled the amount of content that it has in it.

    I have made about 90 sales total, with most of the sales occurring within the last 4 months. I believe this is due to the fact that people may not have been considering it worth $47 before, but now that it has a lot more content, they think it's worth it. Also, I've only had to give out 2 refunds so far. I'm selling about 10 to 20 copies per month.

    I also have a $9 eBook which sells about 30 copies per month. I'm thinking about raising this to $15 as well...

    My email list is very small (under 500), and I don't yet even have an autosponder set up yet. I'm honestly not giving the list nearly as much attention as I should be.

    All of my sales are from direct website traffic, and most of my traffic comes from YouTube and Reddit.

    Considering my goal is to make 3K per month, which is the same as $100 per day...it would make sense to price my course at $97...so every time I make a course sale, I hit my goal for the day (almost). However, I'm nervous that I will miss out on a bunch of potential sales if I price it too high.

    Does anyone else have these same types of fears? Should I just do it and see what happens? What if people buy at $97, then see that I lowered my prices again if it doesn't achieve positive results?

    Looking forward to hearing your replies!

    Thanks!
    You have been given some great advice, templates even, which you can follow to your goal. I suggest you try a different way. Which is...

    Drop the price of your 9 dollar ebook to 2. Then A/B test it against FREE. Yes, give it away to half your traffic.

    At the end of the report, either free of for 2 dollars you want to give your customer two choices. Both about the same price BUT different structures. In your case, maybe all the content at once vs. dripping it over a few days. Maybe the all at once price for 47 dollars or the dripping price at 37. Yes, you would actually be lowering your price which may seem counter intuitive to what you are wanting to do.

    But, you want a longer LIFETIME value, more sticky, more backend or a family of offers to go along with this.

    And you can bribe them, via affiliate programs, so they can get the good stuff for simply referring other people to you.

    I'd like to see you offer a 497 product, what would that look like? Personal assitance?/Coaching? Collaboration?

    How can you add value to their learning and how can you help them get to the next level?

    So, you cover the spreads, from introductory offer, to full back end, a twist and turn on the copper, silver, gold, platinum, URANIUM model...of many inner circles and higher cost cults/groups/clubs/membeship sites.

    Begin with LIFETIME value, and then backward chain to your 100 dollar a day model.

    It could be a two 400 dollar a week model mix, with everything in between. See?

    GordonJ
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  • Profile picture of the author JChilds
    I have not seen anything in your post that talks about how successful your clients are from your " Coaching"

    Do you have any reviews of your service that you can show to possible new clients?

    I am an old guy who believes the only way to get new client is to take good care of the old ones.

    Why is your membership worth $97.00 a month as that, in my opinion, is very strong and I would want a lot of good things coming from you for that much money.

    Maybe you should just concentrate on giving more value for the $49.00 per month and let your customers help get referrals as they would probably be more long term.

    What is your turn over rate right now?
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  • Profile picture of the author SugarPickle
    you're talking about price and nothing is said about "value". it all comes down to value and the perception of value weighed against the perceived cost.



    every single interaction in our lives is an exchange of value. your friends, spouse, your family. a pepsi you buy. there has to be an equal or greater exchange of value or the exchanges will stop and ultimately fail.



    if i build a landing page for a product, i shoot for a personal goal of "value X 4" meaning if its a book that's worth 9.95, i'm not trying to demonstrate 9.95 in value, i'm trying to demonstrate 40.00 - 50.00 in value. I couldn't just raise the price from 9.95 to 19.95 without being able to also demonstrate 2x more (or greater than that) in value to the ideal customer.
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  • Profile picture of the author DIABL0
    Are you sending traffic to a squeeze page or a sales page?

    In other words, are you getting the email address of all users before sending to a sales page?
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  • You are not your clients

    If your client has an urgent problem to be solved, and values the information you are offering to solve that problem at $197, but you are only charging $47 for your content, who is being ripped off here? The answer is "YOU".

    You can make your offer 3 monthly payments of $47 and you will make 3 times the amount of money than the $1000 you are currently making on sales per month now.

    Just 3 small payments of $47 per month will seem less to your prospects' primitive brain than a once off payment of $97. This way you can reach you $3000 per month goal by doing what you are already doing now. Just make your product price 3 small monthly payments of $47 per month and you will be making $141 per sale.
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    • Profile picture of the author Sid Hale
      Originally Posted by Internet Trillionaire View Post

      You can make your offer 3 monthly payments of $47 and you will make 3 times the amount of money than the $1000 you are currently making on sales per month now.
      You're ignoring the fact that he is only getting (currently) 10-20 sales per month at $47.

      That's not to say that he couldn't sell it for more, but he would experience even fewer sales if he increased the price 3-fold (even if spread over 3 payments) - and he would most likely experience a drop in monthly income.

      He needs to increase either a) the amount of traffic to his offer, or b) the conversion ratio on that traffic, or c) both. As Jason first indicated - a price increase is the last thing he needs to be thinking about right now.
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      Coming Soon... Rapid Action Profits (Pro)

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  • Profile picture of the author Bkelly301
    Thanks again for all the advice everyone!

    As far as value goes, many people seem to really like this course. I have received lots of positive feedback from them, and I have a sort of "testimonials" section directly below the course...it is in the form of a comments section, but I have all good comments!

    Yes, I am getting their emails as well. As soon as they register for the course, they are automatically added to my aWeber list.

    I really don't focus on my email list like I know I should. Almost all of my sales are coming from direct traffic as opposed to email marketing. I realize I need to start creating an autosponder sequence and whatnot, but for the last year my model has been:

    Post free content on youtube and reddit...share link to my site....sometimes they buy.

    I'm currently getting about 300 visitors to my site per day.

    I like the 3 payments of $47 idea a lot.

    I also really like the - bronze, silver, and gold type of idea as well.

    All really good stuff here. Thanks everyone!
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  • Profile picture of the author IGotMine
    I really don't focus on my email list like I know I should.
    You need to fix this ASAP. Get in front of your subscribers and buyers quickly while they are still "hot."
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  • I wouldn't be
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