What is Price

Hi everyone, even on Taylor here, and I want to welcome you to today's marketing session

on how to set your price. So the goal here is to make sense of pricing so you can set a profitable price and finally

get paid what you're worth. I think that pricing gets, we don't like to deal with pricing

We don't think about pricing. So the purpose of this session is to explain pricing in such a way that leaves you feeling confident and gives you the ability to know exactly what you're worth, what you're competing against, and how to justify your worth, not to other people or your customers, but to yourself

That's the most important thing in all. So the way we're going to do that is that we're going to talk about price

So what is price? Just I want you to take a moment. Do not just gloss through this

I want you to take a moment and think about what price really is

Yes, I know it seems mathematical, but honestly, it's really a mental psychological thing

In essence, price is quite literally the exchange of money for us

a desired outcome. I want you to think about that. Let's say it again. The exchange of money for a desired outcome. So I want you to think about anything you purchase. What is the desired outcome? If you purchase a pizza, there could be a variety of different outcomes based on which pizza you purchase. If you are

are enrolling in a health club or a gym, you might have a variety of desired outcomes

for doing that. And so always keep in mind of what is the desired outcome It is the exchange of money for a desired outcome Here another simple example Remember how we say let say you are a manufacturer of garden tools

and you sell shovels. The desired outcome is not a shovel. The desired outcome is a hole

That is the desired outcome, not a shovel. So think about that

So I want you to, I'm going to say this about 10 times, exchange of money for a desired outcome

That's on the one side of it. So what is it that impacts the price

What's really only three things, and they're related to the desired outcome

First is speed. How fast do I get my desired outcome? Number two, what is the likelihood that I will achieve

achieve my desired outcome? And three, what is the effort involved? How much work do I have to do

to achieve the desired outcome? Let's go back to talking about that shovel for a minute

So your desired outcome is a hole, correct? Now, how quickly will I get this hole? If you use

a shovel and you're trying to dig a, let's say you want to create an entire garden, like a, I don't know, a 10 by 20

garden in your yard, or let's say you want to make a pond or something like that. The speed involved

in using a shovel, not so great. It's going to take forever, right? So the faster you get

to the desired outcome, you want that speed to be high, as close to immediate as possible

right, to the desired outcome. You want this, I don't know how to say this. You want the speed

to be low You want it to be fast right in immediate So if somebody wanted to dig a garden or a pond ideally they would snap their fingers and they would have a giant hole in the ground So that is speed right A shovel is going to take a long time hence it cheaper right

The faster you get to desired outcome, the more you can afford to charge

How likely is it that I'm going to get my hole? You will get a hole

A shovel will indeed generate a hole. it will take some time and then we get to the third element, which is effort

How much work do I have to do to get a hole? It's going to be a lot of work

It might take you an entire afternoon or an entire day of digging with a shovel to build

this pond, to generate the kind of hole that you want to have a pond

Okay. Now, that's the desired outcome is a hole. What are some other ways that you can have a hole

You could also have a some type of a digging machine, like a, what is that called

Like a digging machine. I can't think of what that's called now. So that, of course, will be faster

You will absolutely have a large hole. and really the only effort involved is that maybe you have to know how to use this digging machine

or maybe you have to hire someone to use the digging machine and rent that thing

but still way less effort. You could have a hole within an hour

So you understand that the three things that impact the price, speed, likelihood, and effort

We want as fast as possible with 100% guaranteed with zero effort

Those are your goals, right? And that's in essence how price is determined

So what I'd like you to do right now is think about your current offer

How fast will it take for your customer to see results? What can you guarantee How fast Number two how likely is it that they will achieve results and number three how much effort will they take as you think through that i going to give you some more examples

think about a fitness program how fast will it take for your customer to see results like lasting

results remember the desired outcome may not just be to lose 10 pounds. The desired outcome may be to lose 10 pounds and keep them off and not be on a diet

forever and like all those things that you know from your client. So how fast will it take

How likely are they to achieve those results? This will also help you determine what you need

to include in this offer so that it increases the likelihood of them

achieving those results. I worked with a client who was a business coach. And as we all know from

business coaching, people can get results, but only if they show up to the coaching sessions

if they do the exercises. Notice, this is like a lot of effort. So what she did in order to increase

this likelihood of their, of her clients achieving these results, she made sure that she

put them on these accountability teams and that there was community and that there were friendships

and that there was just this incentive to constantly be engaged with the coaches. How much effort

will they need to put in to achieve the result? If you, you know, what again, what support

systems can you put in place to make that effort easier? This is a great example. You're trying

to set your price for product. I'm trying to make it easy. to reframe things so that you can achieve your desired outcome of a profitable price for your product or service faster and with more confidence

So hopefully you've got that nail down. You can always come back and listen to this later