Should You Lower Your Prices Because People Can’t Afford It?
In today’s podcast episode, I decide to talk about pricing, charging, and how to confidently ask people for money especially during this global pandemic time that we currently live in.
Today’s episode was inspired by a question asked by one of my Bossgram Academy students who asked about how to start charging and still confident that there are people out there who will still want to pay for it.
I thought this was an excellent question asked by one of my Bossgram Academy students and the exact reason why in today’s episode, I specifically chose this question to talk about.
I would love to hear what you think of this latest episode!
But if you prefer to continue reading, keep on scrolling. I will be breaking down some points that I shared with this particular client and my other clients as well.
Find a Way to Give Value Without Lowering Your Price
Before you even start thinking about giving crazy discounts and doing low ticket offers, you need to understand that there are so many ways you can still help your potential clients and audience by providing values to them.
Especially during this global pandemic, we are so inclined to lower our prices because it comes from guilt. We know a lot of people are currently struggling financially and the only way we think we can show we do care about others is by lowering our own values.
And that is a completely wrong mindset.
What you need to understand is you can still help people during this time without necessarily lowering your prices or offering steep discounts that you can’t come back from.
Now, what exactly can you do?
Offering Payment Plans to Them
This is the most obvious thing and the easiest way for both sides to benefit from.
By giving someone a chance to pay back the amount in a longer period of time, it also helps them to have a better chance at enjoying the products or services that you are providing without compromising their finances.
But most importantly, by offering payment plans or extending their current payment plan, you are taking control of the situation in your business.
Do Not Bend Over Backwards and Offer More
Now, you might think to offer payment plans is the final solution to your problem. But sometimes, it can be tempting trying to offer more than 6 months of payment plans.
You do not need to bend over backward just because you want to make a sale. It simply does not make any sense.
I am not saying you should not have a 12-month payment plan. Everyone’s business is different. But for most business owners that are offering 12-month payment plans, it increases a lot of the chances of payment failures.
This can become a headache.
Make a Decision That You're Not Going to Regret... Ever
You might be thinking, I still feel guilty for not being able to help the people who can’t even afford the payment plan.
I totally understand your dilemma.
But what you do need to realize is there are so many ways you can still offer values to people and you can still help them.
For example, offering them your free content.
If someone is not ready financially to invest in your programs or courses, nothing should stop you from directing them to your free content and let them learn through that.
Free Content Can Be Super Helpful
If you are the amazing coach or content creator that you say you are, I am really sure that whatever free content that you are providing will be very helpful to your audience.
For example, maybe a handful of you who are currently reading this blog post or even listening to the podcast episode is probably not ready financially to work with me at the paid level.
However, that does not stop me from directing you to this blog post or my podcast episode.
Because my instinct is telling me that this free piece of content alone is going to be enough to help you with your business until you are fully ready to commit mentally and financially to me at the paid level.
People Need Content Now More Than Ever
This is the time when almost everyone is going to need some sort of content to help them through this pandemic.
Anxieties are rising and everyone is worried about different things. Your content is going to help them to feel like they have support.
So my advice is for you to continue providing values whether that’s in the form of paid materials or free content like this blog post you are reading right now.
This global pandemic is not going to last forever. And when it’s finally over, you can be 100% sure that the same people who benefit from your free content will probably able to commit to you financially.
Because they know that your courses will always be there for them. So, never think that you are disabling someone from your support.
Attract The Right People
When you look at entrepreneurs and you look at people who sell services at different price points, you can easily find out the kind of people who tend to request refunds.
I have a friend who actually offers a lot of different things for the super cheap amount and when we were looking at her stats, it turned out that the majority of her customer support complaints and refund requests came from her cheaper products versus the more expensive products.
I find this really interesting.
What does this tell you? It tells you that your price attracts a certain type of people.
If you sell high-ticket, then you are going to attract people who can afford a high-ticket. But if you are selling cheap, you are attracting people who are constantly wanting to bargain with you.
It’s as simple as that.
Never Disrespect Your Business
This is the business that you have poured your heart, mind, and soul into. By lowering your values, you are disrespecting your own business.
I am not here trying to teach you to be heartless. I am here to teach you to have integrity and to understand that you do not have to feel guilty, especially during this time.
Do your best to offer your free content and the rest of your work and materials will speak for themselves.
Let me know what your thoughts are and if you’re interested to listen to the podcast, check out below for the subjects I cover in today’s episode!
HERE'S THE KEY TAKEAWAYS OF THIS EPISODE:
[02:00] How can you start charging what you want to charge while still feeling confident that there are people out there who will still want to pay you for it?
[04:41] Example of payment plans you can offer to your clients
[07:23] How we outsource a lot of our payment failure followups to a company called Gravy
[19:34] My thought on making people wait until they’re energetically ready in their life in a positive financial position
[21:50] Your prices are very indicative of the type of people that you are going to ultimately attract
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