Behind the Scenes of Program Pricing

By , Business Growth & Marketing Expert

Solo-E Certified Solo Entrepreneur Expert

Sandra P. Martini - Business Growth & Marketing Expert

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.

There’s the…

  • 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
  • Calculate

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.

Get It Done Right members can access the Pricing Calculation spreadsheet and how-to-use video.

If you’re not currently a Get It Done Right — The FIRST Time member and would like to join and receive full benefits, including the Pricing Calculation spreadsheet and how-to-use video, please click here.

Creator of Escalator Marketing, Sandra Martini specializes in showing small business owners how to create a business with multiple streams of revenue while living their lives.  Known for her "tell it like it is" yet nurturing approach, Sandy's clients benefit from her over 20 years in the start-up and marketing fields.

© Copyright 2010 Sandra P. Martini
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