I think a lot of people think that I think everything should be $10 000.
Marketing funnel? $10K.
Phone consultation? $10K.
This can really intimidating for a lot of people. As $10 000 might be a lot of money. To imagine that your marketing funnels could be worth $10 000 is a sobering thought to many.
The truth is that I don’t think everything should be $10K or priced crazy high. I believe that everything you sell should be profitable. Simple as that.
If you sell an eBook for $19, then I’m assuming you don’t re-write the book every time someone buys it. That would be insane right? So why do we allow ourselves to think that everything else we deliver is bespoke or priced how the customer wants?
I chose $10K as a starting price for many funnels because experience tells me that’s what I need to charge to set it up. So many businesses undercharge only to find that they never make any more.
The reason we worry about price is because everyone around us is an expert on pricing. Your Mum and Dad, your colleagues, your competition, customers, industry experts, bank manager, accountant. Everyone has a opinion on price and it’s usually negative.
“I wouldn’t pay that”
“That sounds like a lot of money”.
“I wouldn’t pay that”.
“$10 000 is a lot for a website, my nephew says he can do it for $500”.
If we hear this over and over again, it can be tempting to lower your price in order to sell more marketing funnels to customers. It becomes even more tempting when you’re talking to a customer and they hassle you for a discount. It’s almost unbearable when you’ve got no customers, and everyone keeps telling you that you’re priced too high.
If you EVER feel unconfident about your pricing, I want you to read this blog post here about the perfect pricing model for funnels.
That’s the first rule. Price according to what you need to make. Don’t worry about anyone else.
Having said that, it is VERY difficult to walk away from cash flow when it’s on the table. Surely $8000 is better than $0000.
When we’re in a dry spell and we’re struggling to find customers, our first thought is usually “I need to lower my prices”. The thought process is that if we lower our prices, it’ll become more attractive and we’ll find more customers.
We can always increase our prices later right?
It’s much much harder to raise your prices after you’ve already lowered them. That’s because your customers are never going to ask you “can I pay you a bit more? can you increase your prices?”
If you lower your prices, you’ll be stuck there until you raise them again. Once you raise them, you’ll find a drought of customers AGAIN and the cycle continues.
You’ll only get low value referrals
The trouble with lowering your prices is that you’ll only attract low value referrals. The customers you DO attract based on your pricing model are going to refer their network to you. And chances are that they are in exactly the same position.
Once someone tells their network that you do XYZ for $low price, then they’ll expect that same low price.
It’s also never going to become profitable. A lot of us fool ourselves into thinking that working for a lower price will allow us to get the customer. We can focus on making it profitable later.
Typically, if we lower our price, that means we’re not able to afford resources which would get the results we need.
“It’s OK” we think “I’ll build this one and charge less. I can charge more and get someone else to do the next one.”
Thinking like that is cancer. It’s toxic to your business and immediately inhibits growth. All of a sudden, you’re losing twice.
First, you’re loosing the time it takes for you to do the work. Which means you can’t focus on building the business. Second, the income isn’t enough to grow the business itself.
So what can we do to keep our prices high?
It’s hard and scary, I know it is. But we have to stay strong.
First, we have to be confident that our price is set for a reason. If we’re pricing according to what works for us, then that’s all that matters. Jimmy down the road can charge whatever he wants.
Second, we have to learn to turn objections. If customers say it’s to expensive, we need to learn how to explain to them that this is the price and let them understand.
If customers insist that we’re still to high. Then we can ask them “OK, what can we remove from the proposal?” Ask them what we can remove from our delivery and project in order to make it more affordable. They won’t want to.
We can also offer something different. Dropping the price dramatically also means that you have to drop the results. You can’t deliver Lamborghini results on a Ford budget.
If people still want help with marketing, email automation and traffic generation. But their budget is $1000 rather than $10 000, then is there something else you can offer to help them? Even down to an eBook, course or plugin installation?
Finally, if you’re repeatedly getting customers like this, then you need to look at your qualification process. How are these low value customers even getting to this stage? You obviously didn’t ask their budget earlier on and you should do.
If you want to find customers with higher budgets, then maybe you need to be more specific in your audience. MeBox found enormous growth as soon as we said we’re only going to help course and membership based businesses.
I feel embarrassed talking about price
I do hear quite a bit from marketing funnel builders that they feel unconfident and even embarrassed talking about price. Like it’s something weird or perverse.
I totally understand that, and a lot of business have felt the same way. But if you want to sell more marketing funnels, you have to understand that this feeling is both temporary and within your control.
We fear rejection for hundreds of actions. This is part of a scarcity mindset still imbued in us from hundreds of thousands of years ago when we lived in small tribes.
If we were rejected by the tribe, we’d die out and our genes wouldn’t get passed on. When we are rejected because of our price, we feel that same fear. It’s particularly strong when we have no cash flow and someone is offering us some money. It might not be the amount we want but it’s at least something.
We fear losing the cash flow and the problems which come with that lack of funds. But if we take it, we’re NOT profitable. It doesn’t help us in the long run.
What we should focus our efforts on is finding customers that do want to work with us. Lowering our prices is the easiest method we can think of to find customers. But it isn’t a long term plan. Focus on finding the right customers.
If you want help with your pricing, make sure you check out our Pricing Worksheet below. It’s the fastest method of working out your pricing for your marketing funnels. Make sure every funnel project is profitable with our worksheet.