High Ticket pricing for program

[afrankmore]

Good afternoooon Fastlane!!!

Since 99.98% of the fastlane team doesn't really know about my fastlane journey. I have created and developed an addiction recovery program that will be used in government agencies such as probation and parole. Along with my program books, I include an 8-hour live workshop (COVID may change this to virtual) that I call the Instructor Development course (Train the Trainer). This course is based on providing additional value to my program. I do this by education/re-educating professionals on how to deliver educational content in the classroom that enhances engagement for addiction recovery participants. For example, I illustrate presentation vs facilitation or overcoming participant issues and objections in a classroom setting along with so much more.. Anyways, I am in the process of pricing my program. The current cost of my large program (Serves 80 participants) is around $6,000 for a 2 year licensing contract which may include additional incentives.

As I have been working with a business coach from a local university, he has been pushing me to jump those numbers up for my time being spent not only on developing the program but the time I will take when I launch to meet with clients, phone calls, meetings, travel etc.. He stated that if I priced my large program around $10,000 then I have room between 6k and 10k to land the sale IF negotiations are necessary.. We both believe that the value I can bring not only to the staff at the facilities but to the participants, and communities, I may not need to negotiate very much..

What are you thoughts?

How can I learn how to properly price my program?

Thank you in advance

@MJ DeMarco any thoughts?

 

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[Speed112]

How can I learn how to properly price my program?

The best way to figure out how much something is worth is by engaging with the market. Price is nothing more than a signal of how much people are willing to pay in exchange for the given thing.

How do you do that? You spark conversation and ask your target audience. But keep in mind that what matters is their action, not their words.

I don't know anything about your prospects. $10k may very well be too much. But $6k may be too little. At the same time, $10k may be greatly underpricing it. Only way to find out is to sell and see what THEY have to say about it.

When getting started, though, you can ask yourself (ideally also them) how much value you're creating with this program. And how much marginal value the course brings on top.

You save people from addiction. Awesome. Over the next 5 years, you enable them to be 10 times more productive, develop their careers or businesses or whatever, and potentially earn tens or hundreds of thousands of dollars they otherwise would have squandered due to their addiction.

Your course enables others to do that as well more effectively. How much more effectively?

The program serves 80 people who go along to serve potentially hundreds of addicts over a few years. That can be 10k people directly impacted by your program. Also, does the course make participants 10% more effective at solving addiction? 30%? 200%? How many more people are cured of their affliction after this 8-hour investment than before?

10? 50? 738?

Is each additional success story worth $500? $2000? $52397?

You probably have a pretty good idea about the ballpark of these numbers in reality. And I imagine those numbers are likely waaaaay higher than whatever your price point is for your program.

If that is the case, then the monetary representation of your offer is arbitrary and irrelevant. It doesn't significantly affect the RoI of the buyer (if it delivers what it promises). And if the money comes from the government and the professionals are state employees, your audience has a lot of not-their-money they can very easily part with, if the value proposition is right.

You could price the program at $100k and just the course at $10k. 8 hours of your time for however many professionals is less than $1k/hour for what should be extremely valuable expertise. People pay $1k/hour for expertise all the time. If you have a large group, the cost is spread a lot so it becomes really affordable.

$6k for 80 people is $75 per person... for 2 whole years of service in what is a very valuable and high-skill niche of cognitive therapy. I know people who pay $75 per week for a couple of hours of (group) dance classes...

This is my personal feeling but I think you're greatly underselling yourself here, but that's not for me to decide. Go talk to the people who pay you and see how much your service is worth to them. They're the true decision-makers for your price.

Good luck.

 

[Johnny boy]

How many of them could you handle at one time? Not exactly at the same time but like during that 2 year period how many other programs could you handle running? 10? You are selling your time right now. Break down what your time is really returning you if you work full time. If you can run 10 of these at a time, then you should be getting paid 30k a year if you charge 6k for them over 2 years.

1. If the market is big enough that you feel you could sell 100's of these programs, much more than you could do yourself and you need to "duplicate" yourself, then calculate costs to hire someone else for this, and give yourself about a 50% profit margin and then go to work selling the shit out of it. You price it based off of cost to have someone else do it.

2. If the market is small enough that you expect to only be able to signup enough of them for yourself to be doing it, then you need to reverse engineer what your time is worth. If you can do 10 of them and you feel that they will only pay for 6k and no more, then you need to cut down your time commitment so you can do 50 with ease. Or, you have to sell better and raise the price to something like 30k.

That's it, you can have someone else do them, you can raise the price for a single program, or you can lower the time that each one takes so that it stays in their budget but you can do a lot of them. You want to play with each variable and see which one is likely to offer the most return the easiest. It's just a math equation; a video game.

 

[afrankmore]

The best way to figure out how much something is worth is by engaging with the market. Price is nothing more than a signal of how much people are willing to pay in exchange for the given thing.

How do you do that? You spark conversation and ask your target audience. But keep in mind that what matters is their action, not their words.

I don't know anything about your prospects. $10k may very well be too much. But $6k may be too little. At the same time, $10k may be greatly underpricing it. Only way to find out is to sell and see what THEY have to say about it.

When getting started, though, you can ask yourself (ideally also them) how much value you're creating with this program. And how much marginal value the course brings on top.

You save people from addiction. Awesome. Over the next 5 years, you enable them to be 10 times more productive, develop their careers or businesses or whatever, and potentially earn tens or hundreds of thousands of dollars they otherwise would have squandered due to their addiction.

Your course enables others to do that as well more effectively. How much more effectively?

The program serves 80 people who go along to serve potentially hundreds of addicts over a few years. That can be 10k people directly impacted by your program. Also, does the course make participants 10% more effective at solving addiction? 30%? 200%? How many more people are cured of their affliction after this 8-hour investment than before?

10? 50? 738?

Is each additional success story worth $500? $2000? $52397?

You probably have a pretty good idea about the ballpark of these numbers in reality. And I imagine those numbers are likely waaaaay higher than whatever your price point is for your program.

If that is the case, then the monetary representation of your offer is arbitrary and irrelevant. It doesn't significantly affect the RoI of the buyer (if it delivers what it promises). And if the money comes from the government and the professionals are state employees, your audience has a lot of not-their-money they can very easily part with, if the value proposition is right.

You could price the program at $100k and just the course at $10k. 8 hours of your time for however many professionals is less than $1k/hour for what should be extremely valuable expertise. People pay $1k/hour for expertise all the time. If you have a large group, the cost is spread a lot so it becomes really affordable.

$6k for 80 people is $75 per person... for 2 whole years of service in what is a very valuable and high-skill niche of cognitive therapy. I know people who pay $75 per week for a couple of hours of (group) dance classes...

This is my personal feeling but I think you're greatly underselling yourself here, but that's not for me to decide. Go talk to the people who pay you and see how much your service is worth to them. They're the true decision-makers for your price.

Good luck.

Thank you so much!! You touched on a lot of points that I need to take in consideration. I feel that I have way better understanding and I can get right to work on this.. I am speechless because you helped see more value than I originally had in mind.. A thousand thank yous

 

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