Lain, if that happens, the first thing I would do is to add more value. 🙂

Make it such an amazing deal that you bring conversions back up.

Second is testing. See if a different headline or overall offer can overcome the new price objection and make it a total no-brainer for your people to buy.

What can you do to the offer to make it irresistible?

It’s likely that as you raise your prices, your conversions will drop; but sometimes, as I predict the case is with most people who under-charge, their conversions can sometimes go up.

But hypothetically, let’s say that you charge $100 and you have a 10% conversion. If you raise to $200 and your conversions drop to 5%, you’re getting the same revenue from less clients, but it’s harder to get them on a per/person basis. Overall though, it’s same effort, same revenue, less clients/customers. But if you raise the price to $200, and your conversions drop to 7%, then you’re improving your overall results.

Of course, there are factors to consider when raising your price that will keep conversions the same or better. Namely, better filtering/targeting of your ideal client, better marketing strategies from the additional revenue. But in my experience conversions go up because those that value themselves higher and who are more committed get better results and therefore become better case studies/testimonials for your marketing.

The one advantage of keeping conversions super high with lower pricing (as opposed to recognizing that as a sign that your prices are too low) is you do get more customers who demonstrate a willingness to buy from you. That can mean higher long range income because they’re more likely to buy from you again, and they’re more likely to buy your relevant affiliate recommendations because they’ve seen value in a paid relationship with you.

If your conversions drop too much (below the math of the increase in price), then you can always bring your prices back to a happy medium; offer a discount on occasion; boost the perceived value with more testimonials, better sales copy, stronger guarantees; or repackage what you’re offering into something that’s not directly apples to apples comparable.

Ultimately, people love a good deal, but what they really want is an amazing return on their investment, no matter what the price.

Great question to ask and great feedback from the expert contributors.

I find for a lot of my coaching clients (and I’m guilty of it myself) that when it comes to pricing and valuation, we are our own worst enemies.

Lower priced products are okay as far as information products and lead generation goes; but anything that involves actual time (like providing a service, coaching, etc.) has to command premium prices to make it worth while for yourself and attract a higher level client who will actually value what you do.

Can’t wait to see the next question to the experts!

Brian

– Do not set the price based on what competitors are charging.
– Do not start with low price. If you have to want to attract value customers, keep the price the same and distribute coupon.
– Do not compete on price, focus on value instead.
– The price of a product is in the eye of beholder (customer). Try to understand how much does the customer value your product and charge accordingly.

Thank you for saying that I’m creative… that makes me smile.

I do want to BE creative about it. I see this repricing process as a way to share my determination to grow with my audience.

*Come along with me to an awesome place!* LOL!

What you’re feeling is normal I’m guessing. ” A bird in the hand (clients who are paying what you’re charging now) is better than two in the bush.”

I am raising my prices – but I’m not going to raise what my current clients are paying. They get to enjoy their current pricing for the remainder of our coaching agreement and I’ll handle them from there on a case by case basis.