Pricing is a critical activity we do all the time. This is one of the three most popular topics for members. Last month we had over 200 people sign up for our complimentary webinar on pricing.
Let’s look at the 5 pricing tips that stand out right now in 2025.
1.Courses and offerings with the highest prices usually are your most profitable.
Check it out for your program. We need offerings on the upper-end to:
-Support mission-central offerings;
-Be at the forefront of other price increases to pay for your increasing costs;
-To pay for you and your staff.
2.We all need to do market-pricing, not formula-pricing.
Formula pricing is when you charge $xx an hour for all your classes. Market pricing allows you and your customers to charge what your participants can, need to, and want to pay.
Formula pricing charges too much for some classes, and too little for other classes. Charge too little? Yes, price=value in the public’s view. Many people will skip registering if they think the value, as expressed in your price, is not worth their time.
3.You have a 67% chance of being right if you raise your price on a course that needs it. You have only a 33% chance of being right if you lower it.
Some price increases actually boost registrations. Some price increases don’t boost registrations, but don’t decrease them either, so you come out ahead income-wise. With most price increases, you can actually lose registrations and still come ahead on income and on Operating Margin (profit).
4.Triple your price.
Triple your average price in your mind, and on paper. Then figure out what offering or course you can offer for that tripled-price. There is an audience, small but large enough, that will pay and want to pay for a course valuable enough. This most likely will be your most profitable course or offering. You need this income.
5.Once a year, check all your prices.
Make sure no price is just over a price break. Make sure every price is just under a price break. Last month we found this course price: $2,502.50. The second worst price ever. The worst was $100. Either lower this price to $2,495 and get more registrations and income; or raise it to $2,995 and get more income.
