The pricing strategy to grow your $$$

* Transcript created by AI – may contain errors or omissions from original podcast audio

 How does it sound to be making more money with no more work or even less work? If this sounds good to you, make sure you stick around for this episode of the podcast, because I’m going to be sharing one of the strategies that I use with my clients to help them to earn more while working less.

So what exactly is the secret to making more money without having to do a ton of extra work? Well, the answer my friends is premium pricing.

So why charge premium pricing? Well, in a nutshell, it means that you can either be making more money for the same amount of work, or it means that you can actually be making the same amount of money without having to do as many hours. Let me share what I mean. If at the moment you have 10 clients who are each paying you a thousand dollars a month, you’re making 10, 000 a month.

However, if you only had two clients paying you 5, 000 each a month, you are making the same amount of money, 10, 000 of revenue a month, but you only have to serve two clients instead of 10. So you can either be working less and earning the same amount of money, or if you were to take on more clients, let’s say that you did go up to 10 clients at 5, 000 a month, you are making a lot more money for the same amount of output.

The primary benefit of premium pricing is that you make more money, but what are the other benefits of charging premium prices? Well, I have heard this and I have on occasion found this to be true as well, that often clients that are paying higher prices are actually less work.

I’ve run programs where, you know, people are only paying 99 a month. I ran a membership a couple of years ago, and honestly, I felt like sometimes those clients were expecting more and more needy than the clients of mine that are paying me thousands of dollars a month to work with me. Now, of course, that’s not always the case. Um, however, I’ve heard that from other sources and I also have experienced that myself. So often clients that are paying more money don’t have as big of expectations as people paying at a lower price point. Sounds a bit counterintuitive, right? But I have heard this from several sources.

The next advantage is that if you are someone who charges a premium price point, there can be an enhanced brand perception. There can also be stronger brand loyalty when you do have a premium price point. And the reason for this is that customers who are willing to pay a premium often have a stronger sense of discernment. They will want to stay loyal to brands because they value loyalty and therefore are less likely to jump around, just looking for the cheapest option.

So if premium pricing has the advantage of obviously higher margins, but also these other benefits. Why doesn’t every business owner just charge more than? Well, firstly, because it’s just not that simple. There needs to be strategy to it. Please don’t go listen to this podcast episode and go and double your prices tomorrow because you just might screw your business up. There needs to be a methodology around your process for implementing your premium prices. There needs to be strategy to the way that you go about charging more.

Now the next question though, invariably that will come up is, is premium pricing right for all brands? And the answer to that. Is no, it’s important to know where you sit in the landscape. It’s important to know your competitive environment and do you have a service that is easily interchangeable? Because if what you offer is commoditized, your potential clients will have many other options of who they can work with. So it’s important to be really clear on your ideal clients, their capacity to pay, and also the likelihood of them being able to make other options in the marketplace. Are they people is the service that you offer something that’s going to be driven based heavily on price point. Again, this can be connected to volume and the sensitivity that your clients may have around that.

So what are the things you need to be able to do? To offer premium pricing in your brand. Well, first and foremost, you need to position yourself as a premium brand. Emirates can charge differently to scoot air because everything about their business is more high end. A brand isn’t just a logo. It’s someone’s entire experience. With your brand, the way that it is perceived in the marketplace, the way that your messaging is. Someone can have a gold logo or gold as part of their branding. And it still looks tacky. Someone in their marketing can be carrying around expensive handbags and still not have a high end service. Rebuilding a brand is all about being aware of these different touch points.

And The most important thing is that you have to deliver results. It doesn’t matter how premium your brand says it is. If you don’t actually create the transformation for your clients, they are not going to pay those prices. For example, if you fly Emirates and the service is crap. The flights always get canceled and they always run late. You’re not going to keep flying with Emirates. People can make the perception that premium is all about the icing, that the fancy stuff, the glossy edges, but the truth is the most important part of a premium brand is the cake. It’s the actual. Are you doing the thing that you say you’re going to do? And are you doing it to an excellent standard?

The next thing that you need to do to have a premium brand is that you need to be able to build and attract an audience at the right price point. This might mean that you need to significantly adjust your marketing and your messaging.

You’ll need to be intentional with the branding, the languaging, and the various touch points across your brand so that you are attracting in the right potential clients. And also repelling the misaligned clients at this new pricing level.

Next, and this is the most important part of it is that you need to learn the mindset of premium pricing. I’ve been a mentor for nine years now, and something that I’ve noticed is how much of everything to do with business is a mindset game. If you are A long term listener of the podcast, if you are, by the way, a big, thank you, I appreciate you being here, but if you are a long term listener of the podcast, you’ll know that I talk about the power of mindset again and again, and how important, how it is the most important thing in business. And the mindset of pricing is no different. And I’ll share what I mean. You can get to the point where you decide intellectually that you are going to change your prices. And then when you go to talk to a potential new client about your new higher price, you panic and you back down, or perhaps you have the experience where you actually do tell this potential client your new higher price point and the client says, no, I’m not going to pay that. Or maybe they even take it to the next level. They say. They have a go at you. They say you’re a ripoff. This is a people pleases worst nightmare that you finally build up the courage to do something brave. And then you get knocked down. And this is why you have to have your mindset toolkit and be in a state of real confidence to go and have these uncomfortable conversations.

And last, but not least, you need to have a clear implementation strategy for the rollout of your new prices. You don’t want to go out and simply whack up your prices and think that all your clients are going to happily pay more money and that clients are still going to come continuing to flood into you at the same rate that they were before. You really need to have a clear methodology for doing this. To be implementing your new prices in a clear, strategic and calm way. This is the most effective way to go through this journey to be attracting those premium clients in and to be charging those higher prices without completely sabotaging your business in the process.

So if you’ve been listening to this episode and you think you are ready. To be looking at premium pricing at putting your prices up. I’d love to invite you to come along to my upcoming free masterclass in this live 60 minute training with me. You’ll learn the three myths that stop you from charging more. You’ll also learn how to attract high end customers without spending a fortune on branding. You will learn the secret. Hacks that you need for high end pricing, and you’ll also learn a five step strategy to increase your prices with confidence and with minimal loss of your existing clientele.

If you’d like to come along to this Free masterclass. You can find out the details and sign up via the link in the show notes for today’s episode. It’s a live training with me so you can ask questions as we go through. And it’s a masterclass all about using premium pricing in your service based business.

Hopefully today has inspired you to consider whether you want to have a premium price point in your organization and giving you some tips of how you can go about implementing a new increased price strategy. If you love today’s episode of the podcast, I’d be so grateful if you could share it with your audience on social media and make sure you tag me so I can bob your DM and say a big thank you.

And I just want to take a moment and say a huge thank you for listening to my podcast. I really do appreciate you being here and I’d love to see you live inside my premium pricing masterclass. Have a fab week and I’ll chat to you again soon.

* Transcript created by AI – may contain errors or omissions from original podcast audio