In this episode, James and Phoebe share 6 insights on what raising your prices really means, as well as providing an exercise to help overcome resistance you might have with around this topic!
The six insights are:
1) The effort to sell is not proportional to your price tag
In most cases, it takes the same amount of effort, or even less, to sell a higher ticket item. James feels strongly that raising the price of his latest product would have resulted in higher revenue numbers of his launch, even if the total number of customers were lower.
“Your product still needs to over deliver, and be at a premium level”
2) The transformation is in the transaction
James offers a lot of free content through his YouTube channel and blog. However, he says that almost all of the testimonials, results, feedback an life changing stories have come from paying customers, not people that accessed the free content.
“It came from the people that put the skin in the game”
A lot of entrepreneurs want to help people, and think that the only way to do this is to not charge for their products and services. However, commitment is created when money is exchanged, and there is a direct correlation between the size of the transformation and the size of the transaction (higher fee, more results).
“No one values free; they just don’t.”
3) Making the assumption that they can’t afford it
This is usually the #1 reason entrepreneurs hesitate at raising their prices. By making assumptions like this, you’re forcing people to play small and not letting the prospects decide for themselves.
James recommends business owners not be afraid of people saying “No.” It’s all about the meaning you give to the word.
4) Pricing is marketing and branding
Entrepreneurs usually look at what competitors are charging and charge a little less, or a little more.
Do you want to be known as being the cheapest? James and Phoebe discuss why being the “Walmart type business” might not be the best thing for you.
5) The “No” from a cheap sale is worse than the “No’” from a “I don’t have the money” sale
Having a higher price gives the perception that you’re worth it, and other customers are paying that much for your services.
6) Higher prices attract higher quality people
These are the people that are actually showing up and putting the work in to get the good results. This lets you, as a coach, teacher or facilitator, be more effective.
A higher quality customer already has a busy life, and the person already takes responsibility, which is why things are working for him or her.
Exercise to work on raising your prices:
1) Identify your offer and price point
2) Assess how you feel about your current price and promise that you offer clients right now.
3) Determine how it would feel to change the price, to both a lower and higher level. Once you find the “sweet spot”, push the limits and go higher than this number.
4) Once your new price is set, be very present to the reaction of the prospect. If it’s a quick “Yes”, you prices aren’t high enough and have been set to low.
This episode includes all the wins, losses, breakthroughs and breakdowns of the latest product launch by James. Listen in on what he and his team learned, and how they can take that information to apply it to their next one!
James shares that the best thing you can do after a launch or promotion is to take the time to assess the numbers and see what worked (and what didn’t). This is where you’ll find the space to grow and prepare for your next launch, and his team calls it “unpacking.” Phoebe adds that this should be done immediately after the launch is complete, and that the results should be shared with everyone on the team.
They consider this the best launch they’ve ever done. It didn’t have the biggest financial result (with $333,000 in total revenue generated), but they did hit their lowest goal and streamlined their processes, learning many lessons.
James quotes Brene Brown, when she talks about entrepreneurs being “in the arena” and being “beat up and bloodied.” He says:
“That’s the only way you really experience or created knowledge, wisdom and discover those lessons”
Although the launch wasn’t effortless, it was painless and fun, with his team really stepping up. He wasn’t the bottleneck, as not everything had to go through him to get done.
Phoebe wanted two things from the launch. First, she wanted it to be as stress-free as possible, and she also wanted to develop her leadership skills. She says she achieved both personal objectives in this launch.
“It was such as positive, exciting experience the whole way through”
Facebook ads were used very strategically, and they say it was the most dynamic use of this marketing tool that they have ever experienced. It created about 20,100 new subscribers into the launch and onto James’ email list in only 2 to 3 weeks of promotion.
James talks about Dan Ariely’s book “Predictably Irrational” (see “INTERVIEW LINKS”), and the concept of price relativity. He compares this idea to their launch and “goal relativity.” For some of James’ coaching clients, a $100,000 launch would result in a total breakdown, whereas for others, it would change their lives.
James shares the launch’s “Earning Per Lead” (EPL) calculation, which determines how much each subscriber was worth. This number is what is really crucial, as opposed to total revenue, as you can always scale and get more people in your next launch.
1) James feels that the offer for the product they were selling needed some work.
“The offer, at the core level, is what the promise is and how much it’s going to cost to fulfil that promise. What is the outcome, or what are you clients really paying for?
2) The price was too low (an upcoming episode will be focused on the topic of raising prices). The product was actually created two years ago, and based on pricing at the time, was listed at $297. With the amount of content, value and support included, this number could have been higher and the product would have still sold.
1) Responsibilities were clear for the core group of four team members, and the team was easily accessible by person (or Skype) to support the others.
2) Communication was key and led to the stress-free launch. Along with regular meetings and the use of visual aids (calendar), everyone knew who was working on what and the status of the task. James used the methods of Jeff Sutherland’s, “Scrum: The Art of Doing Twice the Work in Half the Time” (SEE “INTERVIEW LINKS”).
3) The process templates available to the team, as well as the software used, simplified the process and resulting in more upsells and a success with affiliates.
The team kept info in one place, on a “magic page”, with resources that will make the next launch turnkey. They effectively used Sweet Process that Michael Hyatt recommends, as well as The New Kajabi (SEE “INTERVIEW LINKS”). On The New Kajabi, James says that for the first time, he got to experience everything working together (course hosting, upsells, checkout pages, sales pages and an affiliate center).
The participation of over 50 affiliates resulted in thousands of clicks, and their upsell conversion rates were very good, at 20 to 26% for existing courses that they already offer).
A backend offer of a $1,000 one-day live event was added and sold out immediately to 10 customers.
James concludes this episode with the big lessons he took from the latest launch. Online entrepreneurs need to get really good with their offer, as well as being open and willing to increase their prices. Knowing the true value of your offer is key, as well as operating effectively as a team and letting go to trust others more.
Comparing yourself to others is unavoidable. James and Phoebe give four practical steps on how to compare yourself to others, but in a more powerful way.
James starts the episode by providing two quotes on the act of comparing ourselves to other people, the first by Theodore Roosevelt and the second from James himself.
“Comparison is the thief of joy”
“Contrast is the seed of desire; desire is the foundation for results”
Four steps you can take to compare yourself to others, and to feel more empowered
Step 1: Acknowledge it
By acknowledging it when it is happening, comparing yourself to others won’t persist anymore.
The action of comparing yourself to others isn’t necessarily good or bad, as it depends on the meaning that we put on it when we focus on the other person. By have a negative reaction to it, we’re really saying is “I can’t have (what that other person has).”
“Every time you feel negative, it is because you are experiencing something negative in your life”
Step 2: Determine the context and perspective
According to James, this step is necessary because we have so much “stuff” in our heads.
When people put their best foot forward on social media, we’re not seeing their “behind the scenes.”
Some pieces of context to consider are time, goals and personality types of the person you are comparing yourself to.
The person may have been in business for many more years that you have. It’s important to look at the person and try to figure where they were at at the same point you are at now.
When you’re struggling and doing comparisons, look at the other person(s) goals. Consider that someone else may just be on a different path than you, and you don’t want the same things in business and life.
As well, personality types should be considered when comparing yourself to others. Myers Briggs defines 16 basic personality types, and there are free tests online to help you determine yours (see “INTERVIEW LINKS”).
When you identify your personality type, you identify your strengths. James considers himself an introvert, and his strengths are details, systems, thinking and intuition. Someone like Gary Vaynerchuk is an extrovert, with a different set of strengths, which makes it difficult to accurately compare himself to.
Phoebe reminds listeners to be confident in their strengths, and who they are.” If you try to be somebody you’re not, it’s never going to come out in an authentic way.
Step 3: Identify your goals
When you see someone that has something that you want, or don’t currently have, you can add some of his or her goals to your list. This can either inspire, or upset you. Either way, you want it and if you do experience the negative emotion, it’s important to stop and consider why this is happening.
You should work towards your goals, and place them on your vision board or on your “to-do list.”
Step 4: Have gratitude
Gratitude is the vibration, or emotion, that is the most attractive. It will bring you what you want, the most.
“(Being grateful) is like opening your arms for more” (James)
Make a list of what you are proud of and grateful for, as well as the things that you’ve accomplished to date. Phoebe calls this her “accomplishment inventory.”
“Give a blessing to the person you’ve just compared yourself to. It’s only through your comparison to them that a desire was born within you.” (James)
James concludes the episode by observing that when we see other people’s success, this is proof that we are on the right path to achieving our goals.
We are all spiritual beings, but we live in a mechanical world with laws that need to be taken into consideration. In this episode, James and Phoebe share practical steps that can be taken today to manifest your goals in business!
In October 2014, Phoebe had her first product launch, and made about $3,300 in sales. For her second launch, her original goal was just to exceed this number, but her project management encouraged her to reach hire. She set $10,000 as her target, and was able to manifest a total of $10,250 in sales from the launch.
James has multiple examples of manifesting results in his life and businesses. He recalls one instance when he was told in a dream of a particular amount of money he was going to make the next day, and it happened.
Step #1: Clearly define your goals
Your goals should be both monetary, and time-driven. Phoebe explains that the “when date” makes it more concrete and defined.
James has a technique whereby he creates three goals: “Middle-of-the-Road”, “Wimpy” and “Hairy Scary” (or “stretch” goal, which you always want to have).
He reminds listeners that with goals, you get what you expect.
When you remove the just the money, more magic is possible. He recommends that you break down the goal, into more than just money (it could be # of units that need to be sold, how many leads it will take to generate the required number of customers, etc.). This will make it more real and tangible. Phoebe calls this taking “one small bite” at a time.
They recommend putting your goals everywhere they can be seen. Phoebe used “10K” as her phone background and set reminders of her goal. As well, she would write it out 2-3 times a day.
“It’s like having a relationship with the number; you get to know it. It inspires, excites and reminds you.” (James)
You can also take the goal and create affirmations around it. This should be something that makes you feel good and resonates with you. Phoebe’s was “I am a ten thousand dollar launcher” and “my live events sell out in minutes.”
When you say it, it should spark something inside of you. James says you can use “I always accomplish my goals”, or one of his personal phrases is “I am a powerful manifestor.”
Step 2: Know what emotion this money or experience is going to bring you
James states that when you realize that you can create that feeling right now, you get access to so much more power and magic.
Step 3: Feel those emotions – now
This can be compared to a radio dial. You just identify the “station” that you want to be at (joy, confidence, love, etc.). In order to access it, you need to tune in, now.
Both James and Phoebe actively practice visualization, using all of their senses, to imagine how it will feel when they achieve their goals.
Step 4: Get into action
Change happens when we take inspired action. If you’re stuck, ask the right questions and the answers will come. There are signs everywhere, and James says that the universe is there to guide you every step of the way. The book, The Alchemist, is a great example of this concept (see “INTERVIEW LINKS”).
Phoebe mentions that you need to celebrate the small victories during your journey, and not just wait until the end. To do this, you have to be tracking your progress.
Step 5: Let go and trust
You’ve got to have faith that you’ll achieve your goals. If you waver, you’re going to struggle. Manifesting is about the power of universal law. You’ve got to trust the process, even if you don’t know exactly how it will happen for you.
James concludes with:
“It is done. Show me.”