There’s several different ways you can price your programs and a guru to charge you a small fortune to explain the intricacies of each method.
- Pick the first number which enters your head and double it “abundance” approach
- Put up a dartboard (or head to your local bar), grab a dart, throw it and multiply by 10 approach
- Ask your list and see what they’re willing to pay or rather what they SAY they’re willing to pay (usually lower than the former)
- Determine your costs and multiply by 2, 5, 10 (use the aforementioned dartboard to get this number)
- Check out your competitors and either cut their price by 50% or multiply it by 2 depending if you wish to be the “bargain” or the “boutique”
And there’s my approach:
- List all your known costs — fixed and variable
- Add in your desired profit
- Determine the number of people you want in program
While my approach isn’t perfect (more about that in the video) — I’ve yet to find a perfect approach — it does let me sleep at night knowing that I’m neither giving away the business nor reaping a 500+% profit.
It has one other benefit…having been in business as long as I have, running and participating in the types of programs I have, it also allows me to get a ballpark estimate of what someone else’s program costs in real dollars as opposed to what they’re charging and decide how I feel about that.
While their making a 100% vs a 1000+% profit doesn’t determine whether or not I join a program, it is one more piece of information I consider when making my decision however.
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© Copyright 2010 Sandra P. Martini