A lot of people say that raising your prices is about your mindset and beliefs around your offer.
I totally disagree with this.
Or perhaps I should say: it’s a very vague statement. Because those who say it never go into an in-depth explanation of what they really mean. It’s usually like, “pricing is all about your beliefs! Once I believed my offer was worth $10,000 I started attracting clients who believed that too!”
Okayyyyy… But why/how did you suddenly “believe that your offer was worth $10,000”? They never explain that part.
There is actually a step-by-step logical method to see how/why your offer is worth a certain amount.
And once you’re finished going through it, you will absolutely see logically and factually why your offer is worth $10,000. But I wouldn’t call that “belief.” Because it’s like saying you “believe” 2+2=4. “Believe” is the wrong word to use, because that’s actually a fact, not something that’s up for debate. Someone else could say they “believe” 2+2=5. But they would be wrong. 😉
Just like some people “believe” the earth is flat despite hard evidence to the contrary.
So. What’s the logical/factual process for seeing what your offer is worth?
I’m going to lay it out for you right here.
There are four types of outcomes that we know people pay for in the coaching/consulting world. They are: health, wealth, relationships, and personal development.
Within each of those four areas, there are a huge number of PARTICULAR outcomes.
Examples for health: lose weight, get fit, or heal a certain condition.
Examples for wealth: make more money, make 6 figures, make 7 figures.
Examples for relationships: save marriages, find your soulmate, have a better relationship with __ [child/parent/some other specific person]
Examples for personal development: get a certain type of job, get promoted, achieve something specific (like going to an adventure athlete event that you’ve always wanted to go to), overcome anxiety, burnout or overwhelm.
Notice that these outcomes are all concrete, observable, simple, and can be explained in about 3-4 words (so that an 8-year-old could understand what you mean).
Now, within each of those simple 3-4 word outcomes are hundreds (if not thousands) of specific SCENARIOS that can be the foundation of your offer.
For example, one scenario for the “lose weight” outcome could be that you help busy entrepreneurs who are about 50 pounds overweight to lose those 50 pounds through a particular macro counting eating approach.
A scenario for the “make 6 figures” outcome could be that you help coaches who are already making $5K/month online to scale up to $10K/month by helping them to raise their prices.
A scenario for the “find your soulmate” outcome could be that you help women CEOs who have a ton of practical knowledge about how to date, to overcome past traumas and mindset blocks that are keeping them from finding/seeing the right partner for them despite the fact that they meet so many prospects.
A scenario for the “overcome anxiety” outcome could be that you help million-dollar business owners who overwork and are unable to rest, to overcome those tendencies and enjoy the success they’ve created.
.
Now that you know the 4 categories, some examples of types of outcomes, and some examples of specific scenarios that can be an offer, you’ll want to define what specific scenario is right for YOUR offer.
You do that by looking back to the middle level (the 3-4 word simple outcomes) and asking yourself:
“What scenario could I step into where somebody wants one of these simple outcomes and their only gap (the only thing stopping them from getting it) is the type of help I provide)?”
This is how (for example) a pricing expert could offer the outcome mentioned above, of helping coaches to go from $5K/month to $10K/month. Because that particular coach avatar already knows how to market/get leads/clients online and is succeeding at it (as evidenced by the fact that they already make $5K/month online), probably pricing is the main or only gap stopping them from doubling their revenue.
(you would need to define the scenario much better than this to make sure that pricing is the main/only thing stopping them though – I have people answer over 50 questions about the scenario they’re stepping into – but I’m stating it simply here to give you an idea)
It’s also how a mindset or trauma expert could offer the outcome of finding your soulmate, even if that mindset expert is not an expert on dating tactics, if the ideal client already has a ton of knowledge about such tactics.
And so forth.
Anyway, this post is not meant to be a lesson on framing your offer or being confident in what outcome you deliver. (though I’ve written and spoken a ton more about this in other posts and videos)
It’s meant to be a lesson on how to logically see why your offer is worth a certain price.
So let’s come back to that point, because confidence in a higher price is a natural outgrowth of knowing what outcome you actually provide and being confident that you can provide it.
I hope you see that in each of the four example scenarios above for an offer, you can actually identify real and concrete costs to each of those problems.
If you help entrepreneurs to lose 50 pounds, the cost of that problem comes from many things: their potential lost earnings (we know statistically that people who are overweight earn less money – there are a variety of theories as to why that’s the case), their higher risk for health issues (doctor visits and medical treatments are expensive), and many other factors.
If you help someone go from $5K/month to $10K/month, the cost of that problem is $5k/month times infinity (or the rest of their life that they plan to be in business).
If you help someone find their soulmate, the cost of not having that person to walk through life with is astronomical purely from a practical point of view (add up how much you spend on housing per month by yourself vs. having someone to share it with – in Chicago at least, that cost is $10K/year or more), and also from an emotional point of view as we can’t even quantify how wonderful it is to have that person to walk through life with and have their help and support and love for everything you do. Statistically we also know that married people are, in general, financially better off than their unmarried counterparts.
If you help the super-successful business owners to stop overworking and calm their anxiety, you could be saving them thousands or tens of thousands in medical bills for unexplained/self-created symptoms (don’t ask me how I know that one), not to mention that they could potentially create even MORE money if they weren’t stressed out all the time.
.
In all four of the above examples, I’ve been able to find lifetime costs of AT LEAST $100,000 to each of those specific problems.
Which means that charging someone 10% of that amount to avoid those costs is a no-brainer.
And THAT, my friends, is how you ACTUALLY come to believing that your $10K price is worth it.
You’re welcome. 🙂