How to price your premium services

[K1 Lambo]

Hey there,

CONTEXT: I'm helping people build their personal brands on IG, turn them into Lamborghinis. Specifically bigger companies who carry more meat. Not many one man operations here. I do it to fund my other business. This is mostly for cash flow until the other business starts making significant amounts.

this question has been on my mind for almost a week. I've got about 90 new high quality leads(most of them make 7- mid 8 figures yearly) for my IG agency that are waiting for my message about my offer(some of them have been waiting for almost two weeks).

The question is; should I price myself at $2,000 per month or $3,000 per month to start with? We actually have two packages: the $3,000 one(base package) and the $5,000 one(premium package).

I really have no people in my circle who've been able to answer this, so I'm gonna ask some of you who are already very experienced with selling premium services.

Maybe my approach/mindset is totally wrong? I don't really have any testimonials, but I do have a lot of case studies from my own accounts, so I'm confident in delivering for my clients. Or maybe it's because of my lack of experience I guess.

Personally, I don't think I should be looking at it from this perspective but rather from the ange of how much value I'm able to provide for the amount that I'm gonna charge. I don't feel as confident in charging high prices as my previous clients were telling me I was too expensive(different target group too, which is probably why they were saying that in the first place. These leads make a shit ton of money).

At the same time, people want to pay more for better products or services. Alex Hormozi said it in his book, that higher prices always mean higher value and people are attracted to things that are expensive. And obviously, there's a market for premium services. Otherwise Lamborghini, Ferrari or Rollls Royce wouldn't exist.

Any tips will be greatly appreciated. Greetings from Norway, Scandinavia!

 

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[Johnny boy]

Pricing is finicky. There's tons of variables and if any one of them is lopsided in any direction it can drastically affect the "proper price" you should charge.

How scalable is the service you provide? Can you have someone else ever perform it? How many can you take on at a time? How much money is your time worth doing other things? How good is the service relative to competition? Can you print new customers on demand and there's an endless pool you're constantly picking from? How much value are you specifically providing them? How many customers have you gotten so far and at the prices you're considering charging?

There's 50 more questions to ask and you could easily see how any one of those variables being messed up can affect pricing.

Anything else is just theory and would be deceptively oversimplified. "Yeah man charge more for a premium it'll totally work bro". And believe me I love giving simple answers, this is not one of those times.

This is a math and gut problem. Run numbers, listen to your gut, and use common sense. Get closing ratios by selling your services at different prices and seeing the feedback. I like to start low because I'd rather get one deal done first and prove the validity of my system first before I get greedy.

Also, this is more complicated than "pick a price for the service". If this is the first time these people are doing business with you, it might be better to offer them something small and work up from there. A course, then joining a group, then from that group offer private mentorship, etc. And it all goes from as low as free for the content you make, all the way up to something for 20 grand. That's the tried and tested model.

 

[K1 Lambo]

Pricing is finicky. There's tons of variables and if any one of them is lopsided in any direction it can drastically affect the "proper price" you should charge.

How scalable is the service you provide? Can you have someone else ever perform it? How many can you take on at a time? How much money is your time worth doing other things? How good is the service relative to competition? Can you print new customers on demand and there's an endless pool you're constantly picking from? How much value are you specifically providing them? How many customers have you gotten so far and at the prices you're considering charging?

There's 50 more questions to ask and you could easily see how any one of those variables being messed up can affect pricing.

Anything else is just theory and would be deceptively oversimplified. "Yeah man charge more for a premium it'll totally work bro". And believe me I love giving simple answers, this is not one of those times.

This is a math and gut problem. Run numbers, listen to your gut, and use common sense. Get closing ratios by selling your services at different prices and seeing the feedback. I like to start low because I'd rather get one deal done first and prove the validity of my system first before I get greedy.

Also, this is more complicated than "pick a price for the service". If this is the first time these people are doing business with you, it might be better to offer them something small and work up from there. A course, then joining a group, then from that group offer private mentorship, etc. And it all goes from as low as free for the content you make, all the way up to something for 20 grand. That's the tried and tested model.

That's right bro. Great points.

Like you said, it might be better to start a little smaller, build my portfolio and then charge higher prices as you're already the expert in your industry and there's more demand with time for your services. It's just like being a celeb plastic surgeon. These guys can charge way more(especially the famous ones) because they've performed surgeries on celebs so they have leverage, while other surgeons just gotta compete in price. For example, my mentor(or the guy who I've learned all this from) he's charging $5,000-$6,000 minimum, just on Instagram alone. At the same time, he has thousands of testimonials and has built a personal brand around his name. So he's built his clients' followers into the millions. And that's not the case with me, my best account only has 13k followers. But at the same time, these people don't even need that many clients to make money. One $70k client and it's done for them.

My two points of contact are; Become a Lamborghini on Instagram and save time, because I've found a lot of these owners are also doing their social media, which is what I wanna help them with.

Our main service is social media management. Post content for clients, comment and answer DMs. Most of these social media managers suck though. I know I can do a much better job than them. We don't do ads. Everything is organic growth.

I've gotten a bunch of DMs(and any of you who has a business on IG probably gets these messages) from Indian dudes who want to buy me 1000 followers for 10 bucks. I know for a fact that these business owners don't care about fake followers. I'm talking about building a real, solid following who might buy something from you in the nearer future.

Most people who only do IG are charging $500-$1000. So if I charge $3000 to start with, not only could I be able to give them a perceived discount, since it's easier to go from 3 grand to 2 grand than the other way around. And it will also show higher value in their eyes. We also give gifts to CEOs, have a private group and monthly calls to see how's business.

I also don't have many testimonials, so that might hinder my ability to close many of them.

 

[K1 Lambo]

Pricing is finicky. There's tons of variables and if any one of them is lopsided in any direction it can drastically affect the "proper price" you should charge.

How scalable is the service you provide? Can you have someone else ever perform it? How many can you take on at a time? How much money is your time worth doing other things? How good is the service relative to competition? Can you print new customers on demand and there's an endless pool you're constantly picking from? How much value are you specifically providing them? How many customers have you gotten so far and at the prices you're considering charging?

There's 50 more questions to ask and you could easily see how any one of those variables being messed up can affect pricing.

Anything else is just theory and would be deceptively oversimplified. "Yeah man charge more for a premium it'll totally work bro". And believe me I love giving simple answers, this is not one of those times.

This is a math and gut problem. Run numbers, listen to your gut, and use common sense. Get closing ratios by selling your services at different prices and seeing the feedback. I like to start low because I'd rather get one deal done first and prove the validity of my system first before I get greedy.

Also, this is more complicated than "pick a price for the service". If this is the first time these people are doing business with you, it might be better to offer them something small and work up from there. A course, then joining a group, then from that group offer private mentorship, etc. And it all goes from as low as free for the content you make, all the way up to something for 20 grand. That's the tried and tested model.

Yes, I can delegate it without a problem. At the moment, I could provide services for them as I got a little bit more time at this moment.

 

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[Speed112]

The question is; should I price myself at $2,000 per month or $3,000 per month to start with?

How are we supposed to know if you don't? It's your business.

How much value are you bringing these people with your service? Are you making them $10 million by turning their brands into Lamborghinis? Then you can charge them $100k/mo and they'd be happy.

You shouldn't be asking us, you should be asking your prospects. How much value are they getting for your service?

There is no one-size-fits-all answer that pleases all of your prospects.

If you ask for $100k maybe 1/90 says yes and you just became a virtual millionaire (if you can deliver).

If you ask for $10k maybe 3-5 of them say yes and you lost a ton of value.

But maybe, if you ask for $5k all of them get offended and pissed off and you lost all the work you've put in acquiring the leads.

So you can ask for $3k and possibly close 10/90 and make $30k/mo. Or you can ask for $2k and close 20/90 and make $40k/mo.

Nobody can give you a magical answer to this question that they've pulled out of a hat, and if they confidently say they know what it is, they're lying. Because here's how the buyer's mind works...

They've got a whole manner of things that they want and need and crave, and they've got pains, and the pains hurt, and it just so happens that for these 90 people that you've qualified, the pain is something that you're well-positioned to solve.

Among those things may be feeding and clothing their children, paying rent, buying a new car, getting a nice gift for their parents, hiring someone and delegating a task they hate, going on vacation in the Bahamas, learning how to play guitar, and who knows what else...

So let's say all they have at their disposal is $5k and they want to do all those things. They can't afford all of their expenses at the same time because, in total, the $15k car + the $5k vacation + the $3k rent each month +$2k hiring someone + the 1.5k expenses on the kids + the $1k guitar lessons + the $500 gift for the parents, well... they all add up to way more than their $5k.

So the car will have to wait for when it's really needed. And the vacation for next year. The rent has to be paid, and the kids have to be cared for, so forget hiring people and the guitar lessons, and maybe they can squeeze the gifts but they'd have to be $300 to make ends meet.

And then comes you, confident and prepared, asking them to invest some sum to solve the same pain hiring someone to delegate some stuff would. Will they immediately say yes? Well no, probably not, because they have to figure out how high your offer is on their priority list of expenses. Do they need to skimp on their kids this quarter? Do they have to push vacation yet another year? What sacrifices must they make to pay you for the service, and why would they do it?

Only they know the answer to that.

Some might not need to sacrifice anything at all. You just prove how it's a sound investment and they've got excess liquidities lying around so they just pay you and all is well. Some might have to take a loan to afford the investment.

The only way to know is to communicate with them! Not with us.

And, if you already have a range you're comfortable with, it comes down to what brings you more profit. Would you make more money with 15*$2k or 11*$3k?

When in doubt... Test!

If you have two options, split-test them and see what brings better returns. Maybe the closing difference between $2k and $3k is so significant that you want to go for $2k, or maybe even less. Maybe there is no difference at all and you're losing $1k every time you undersell yourself.

If your mentor can charge $6k why can't you? Why can't you charge $10k? Is the RoI less than that? As long as your clients are profitable they should be happy, right? Can you measure the value you are providing?

In any case, if you're just starting out, you should stop action-faking by asking questions nobody can answer but your own actions, and just send out your offers. Try $2k. Try $3k. Try $5k. Try $100k. Try $500. See how much you can charge from the interactions with your audience, and try to maximize your bookings.

Once you're full and can't handle the volume so you need to hire out, then you can raise your prices and scale, use the existing clients you got at the lower price point as case studies and testimonials to justify the price increase so you can maintain your flow of clients. Rinse, repeat, until you notice the market push back or you fail to deliver on your promises.

Then come back here and tell us how you've done it so we can come to compete with you, keep you on your toes, and force you to do price discovery again

Good luck.

 

[Andy Black]

The best bits of advice I heard about pricing were:


1) “Get it wrong.”

Meaning don’t get precious about it. Quote something and see what happens. If they say yes then see how much it costs to fulfil it, how much you want that work, and adjust the price for your next prospect.

• www.TropicalMBA.com/services
• www.TropicalMBA.com/consulting

2) “Price it so you’d be delighted if they said yes.”

The last thing you want is for someone to say Yes and for your shoulders to slump. Pick a price you’d be happy with if they said yes. This could factor in all sorts of things, including how much you want to work with them.


3) “Figure out how much it would cost to get someone to do it, then triple it.”

1/3 for the person to provide the service.

1/3 for your business to get the work and manage the project (think marketing, sales, and account/project management).

1/3 for your business.

(I don’t do this btw. I do the sales, marketing, and fulfillment and am happy to charge low for my service because building a consultancy or agency is not my goal. Bear in mind your end game and the business you want to build.)


4) “How you earn your money is more important than how much you earn.”

My fees are low compared to what some might call industry standards. But my fees are monthly recurring, build long term relationships, and my service often doesn’t require much ongoing work once dialled in.


5) Pricing higher increases perceived value, and often improves the quality of client.


6) “The most important formula in business is R+R=Profit (Repeat Business plus Referrals equals Profit).” - Blaise Brosnan

I prefer long running MRR and word of mouth.

 

[Johnny boy]

Sounds like you should start for cheap and get your foot in the door. If what you say is actually true and you can turn people into success stories, they shouldn't have a problem paying you much more in the future.

But 95% of the time that is not what actually happens.

 

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[K1 Lambo]

How are we supposed to know if you don't? It's your business.

How much value are you bringing these people with your service? Are you making them $10 million by turning their brands into Lamborghinis? Then you can charge them $100k/mo and they'd be happy.

You shouldn't be asking us, you should be asking your prospects. How much value are they getting for your service?

There is no one-size-fits-all answer that pleases all of your prospects.

If you ask for $100k maybe 1/90 says yes and you just became a virtual millionaire (if you can deliver).

If you ask for $10k maybe 3-5 of them say yes and you lost a ton of value.

But maybe, if you ask for $5k all of them get offended and pissed off and you lost all the work you've put in acquiring the leads.

So you can ask for $3k and possibly close 10/90 and make $30k/mo. Or you can ask for $2k and close 20/90 and make $40k/mo.

Nobody can give you a magical answer to this question that they've pulled out of a hat, and if they confidently say they know what it is, they're lying. Because here's how the buyer's mind works...

They've got a whole manner of things that they want and need and crave, and they've got pains, and the pains hurt, and it just so happens that for these 90 people that you've qualified, the pain is something that you're well-positioned to solve.

Among those things may be feeding and clothing their children, paying rent, buying a new car, getting a nice gift for their parents, hiring someone and delegating a task they hate, going on vacation in the Bahamas, learning how to play guitar, and who knows what else...

So let's say all they have at their disposal is $5k and they want to do all those things. They can't afford all of their expenses at the same time because, in total, the $15k car + the $5k vacation + the $3k rent each month +$2k hiring someone + the 1.5k expenses on the kids + the $1k guitar lessons + the $500 gift for the parents, well... they all add up to way more than their $5k.

So the car will have to wait for when it's really needed. And the vacation for next year. The rent has to be paid, and the kids have to be cared for, so forget hiring people and the guitar lessons, and maybe they can squeeze the gifts but they'd have to be $300 to make ends meet.

And then comes you, confident and prepared, asking them to invest some sum to solve the same pain hiring someone to delegate some stuff would. Will they immediately say yes? Well no, probably not, because they have to figure out how high your offer is on their priority list of expenses. Do they need to skimp on their kids this quarter? Do they have to push vacation yet another year? What sacrifices must they make to pay you for the service, and why would they do it?

Only they know the answer to that.

Some might not need to sacrifice anything at all. You just prove how it's a sound investment and they've got excess liquidities lying around so they just pay you and all is well. Some might have to take a loan to afford the investment.

The only way to know is to communicate with them! Not with us.

And, if you already have a range you're comfortable with, it comes down to what brings you more profit. Would you make more money with 15*$2k or 11*$3k?

When in doubt... Test!

If you have two options, split-test them and see what brings better returns. Maybe the closing difference between $2k and $3k is so significant that you want to go for $2k, or maybe even less. Maybe there is no difference at all and you're losing $1k every time you undersell yourself.

If your mentor can charge $6k why can't you? Why can't you charge $10k? Is the RoI less than that? As long as your clients are profitable they should be happy, right? Can you measure the value you are providing?

In any case, if you're just starting out, you should stop action-faking by asking questions nobody can answer but your own actions, and just send out your offers. Try $2k. Try $3k. Try $5k. Try $100k. Try $500. See how much you can charge from the interactions with your audience, and try to maximize your bookings.

Once you're full and can't handle the volume so you need to hire out, then you can raise your prices and scale, use the existing clients you got at the lower price point as case studies and testimonials to justify the price increase so you can maintain your flow of clients. Rinse, repeat, until you notice the market push back or you fail to deliver on your promises.

Then come back here and tell us how you've done it so we can come to compete with you, keep you on your toes, and force you to do price discovery again

Good luck.

Thank you. Makes me realize why some of my older clients were bitching about me being too expensive lol. I was targeting the wrong people. People who were only making a couple grand per month. A lot of these potential leads are mutli-millionaires who drive Ferraris and service clients in very wealthy areas like Malibu, Beverly Hills, Miami etc.

90-95% of these leads are from the US; servicing mostly Arizona, Texas, Florida and California. The other 5% are from the UK and some from Asia. I've tried $500 before, and trust me I was selling myself too cheaply.

I was thinking of starting with $2k just to get my hands dirty and back to your point increase my trust score and credibility, which in the long run will help me charge a lot more. Like I don't wanna be the guy who charges $5k and everyone is repelled by that because I'm too expensive.

My plan is to record a video presentation of myself for around 5-10 minutes, explaining what I do and what I provide and so, and see how many people wanna stick around from there. My mentor used this technique before and he was able to close a lot clients without meetings because they trusted him already. That's the power of video. Video is the most powerful medium that's out there. Which means, I could stand out a lot more from all the other marketers who only wanna send emails and book meetings. You see what I mean? I mean it takes balls to do that stuff. That's actually one of my big strengths. I love talking to people and connecting with them, and actually CARING about them. Caring is rare nowadays.

You're right. I'm action-faking now. Instead of just doing it, I'm on the forum questioning myself!

 

[K1 Lambo]

The best bits of advice I heard about pricing were:


1) “Get it wrong.”

Meaning don’t get precious about it. Quote something and see what happens. If they say yes then see how much it costs to fulfil it, how much you want that work, and adjust the price for your next prospect.

• www.TropicalMBA.com/services
• www.TropicalMBA.com/consulting

2) “Price it so you’d be delighted if they said yes.”

The last thing you want is for someone to say Yes and for your shoulders to slump. Pick a price you’d be happy with if they said yes. This could factor in all sorts of things, including how much you want to work with them.


3) “Figure out how much it would cost to get someone to do it, then triple it.”

1/3 for the person to provide the service.

1/3 for your business to get the work and manage the project (think marketing, sales, and account/project management).

1/3 for your business.

(I don’t do this btw. I do the sales, marketing, and fulfillment and am happy to charge low for my service because building a consultancy or agency is not my goal. Bear in mind your end game and the business to want to build.)


4) “How you earn your money is more important than how much you earn.”

My fees are low compared to what some might call industry standards. But my fees are monthly recurring, build long term relationships, and my device often doesn’t require much ongoing work once dialled in.


5) Pricing higher increases perceived value, and often improves the quality of client.


6) “The most important formula in business is R+R=Profit (Repeat Business plus Referrals equals Profit).” - Blaise Brosnan

I prefer long running MRR and word of mouth.

I agree. One of my first clients paid me less than $500 and was absolutely horrible to work with. She sent me messages in the middle of the night and basically toyed me around. I've found that expensive clients > cheap clients are 99% better of the time. It's just like what the Joker said; "If you're good at something then never do it for free.".

 

[Andy Black]

Take everything everyone says with a pinch of salt. Including what *you* said yesterday.


Like the Joker quote:

It's just like what the Joker said; "If you're good at something then never do it for free."

I bet someone somewhere is crushing it doing something they’re good at for free.

I also spoke to a guy running a bigger agency and he said it’s not the size of the business that determines whether they’re a pita or not, but the personality and values of the business owner. I’m inclined to agree.

 

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[K1 Lambo]

Take everything everyone says with a pinch of salt. Including what *you* said yesterday.


Like the Joker quote:


I bet someone somewhere is crushing it doing something they’re good at for free.

I also spoke to a guy running a bigger agency and he said it’s not the size of the business that determines whether they’re a pita or not, but the personality and values of the business owner. I’m inclined to agree.

I just said that as a general rule while doing business, not to be taken too literally since there are exceptions obviously. High value individuals like you are bringing value to the table on this forum which means you're doing it for free, which is a great thing. People are here for a reason, right? Or this forum, some podcasts which are also very valuable for entrepreneurs. Andy Frisella is one of the guys who is crushing it, and so are many others!

 

[K1 Lambo]

Sounds like you should start for cheap and get your foot in the door. If what you say is actually true and you can turn people into success stories, they shouldn't have a problem paying you much more in the future.

But 95% of the time that is not what actually happens.

Have you read Alex Hormozi's $100m offer book? In that book he said something very similar to what you just said.

When you give huge discounts or price your services cheap from the start, people are gonna associate you with low prices from the get go, so when all of a sudden once the ball starts rolling and you wanna be the premium guy in your industry, it's rarely going to work(just like what you said), because people and customers have already created a perception of you in their minds which will make it very difficult to justify your drastic price increase.

Like imagine if Toyota, all of the sudden started to sell their cars for $300k-$400k like what Lamborghini does, that would go horrible for them, right? Yes! Because Toyotas are known to be reliable, cheap, comfy and economical. You see what I mean?

 

[Andy Black]

Video is the most powerful medium that's out there.

Video is great. So much so I’m still wrestling with it.

I don’t think it comes close to word-of-mouth though.

As a marketing agency I think the best marketing you can do is to get great results for your clients.

Focus on that and you’ll have a steady stream of people wanting to work with you.


Case in point…

I’ve been doing digital marketing since 2009.

My YouTube channel sucks… it’s just free hosting for videos I embed in the forum or link people to after I’ve had a call with them.

My podcasts aren’t kept up to date. Again, I just link people to them when I think one is appropriate. They’re just a library I can refer to.

I don’t have a website, and only recently created a Linktree style site at AndyBlack.net (check it out if you want a laugh at the simplicity of it).

I do however help people in public a lot in forums and Facebook groups. That brings business but not from the people who read my content funnily enough. Years later when they hear someone complain about XYZ then my name pops into their head. (Google for the power of weak ties.)

Most of my business comes from clients referring me, people I’ve talked to (for free!) referring me, and people who’ve come across my posts online referring me.

 

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[Speed112]

Have you read Alex Hormozi's $100m offer book? In that book he said something very similar to what you just said.

When you give huge discounts or price your services cheap from the start, people are gonna associate you with low prices, so when all of a sudden you wanna be the premium guy in your industry, it's rarely going to work(just like what you said). Like imagine if Toyota all of the sudden started to sell their cars for $300k like what Lamborghini does, that would go horrible for them, right?

Well... the Lamborghini brand is owned by Volkswagen/Audi.

Different brands for different markets. You wouldn't want "the people's car" if you're looking for a top-of-the-line luxury ego booster, and you wouldn't want a luxury bull racecar if you're just a common man.

Lexus is Toyota's luxury brand, and they do actually have high-end models under the Toyota brand as well... so yeah, I'm not sure this is the best example.

It's a matter of positioning, and even if you 10x your prices, pretty much everyone you meet after that will likely have never heard of you (or forgot) when you were charging the low prices.

You can build case studies and testimonials for free and then charge $300/hr and your clients will be none-the-wiser, and as long as you deliver and they're happy, there's nothing wrong with that.

Increasing your perceived value is a process like any other.

 

[Johnny boy]

Have you read Alex Hormozi's $100m offer book? In that book he said something very similar to what you just said.

When you give huge discounts or price your services cheap from the start, people are gonna associate you with low prices from the get go, so when all of a sudden once the ball starts rolling and you wanna be the premium guy in your industry, it's rarely going to work(just like what you said), because people and customers have already created a perception of you in their minds which will make it very difficult to justify your drastic price increase.

Like imagine if Toyota, all of the sudden started to sell their cars for $300k-$400k like what Lamborghini does, that would go horrible for them, right? Yes! Because Toyotas are known to be reliable, cheap, comfy and economical. You see what I mean?

You are not toyota. I have never even heard of that alex dude. He's likely pretty popular since you are assuming there's a chance I read his book, and I have no idea what he charges. He could sell a course for $4.99 or $499 or $4,999 and I would have no idea about what he used to charge a year ago. It's feel good guru advice that promotes a manipulative feedback loop that implies "Buy my $5000 course because it's the Lamborghini of courses and I would have some major cognitive dissonance if I didn't tell people to charge a premium also because that's what I do".

Get one customer first and make them happy. Then worry about charging more.

 

[Andy Black]

Get one customer first and make them happy. Then worry about charging more.

^^^ This.

"Do the first thing first."

"Overthinking is the art of solving problems you don't have."


@Martin Z ... how many clients do you have at the moment?

@Johnny boy ... I only found Alex Hormozi's YouTube channel last week. He's got some good stuff on there.

 

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[K1 Lambo]

^^^ This.

"Do the first thing first."

"Overthinking is the art of solving problems you don't have."


@Martin Z ... how many clients do you have at the moment?

@Johnny boy ... I only found Alex Hormozi's YouTube channel last week. He's got some good stuff on there.

I don't have that many now. Only got a couple for the moment. Actually a forum member told me about his book and it looks like the dude is legit, he's a very good marketer. One of the principles that I distinctively remember from his book are his pricing strategies.

1. Always charge high prices. Be much more expensive than your competitors that way it will spark curiosity around what you do. Higher prices attract high quality customers. Or my favorite take: What do people do when they enter a new industry? They copy what most of their competitors are doing. And the truth is, their competitors are average. And the truth? The competitors they're copying are broke.
2. Target the right group. You want to make sure your target group has the purchasing power for your products and services.
3. Make it a no brainer offer for them, make them feel stupid saying no.

I could charge a lot less, but I've been that dude who's been undercharging, and it's not worth it for me. I'm either gonna go with $2k or $3k to start with.

 

[K1 Lambo]

Well... the Lamborghini brand is owned by Volkswagen/Audi.

Different brands for different markets. You wouldn't want "the people's car" if you're looking for a top-of-the-line luxury ego booster, and you wouldn't want a luxury bull racecar if you're just a common man.

Lexus is Toyota's luxury brand, and they do actually have high-end models under the Toyota brand as well... so yeah, I'm not sure this is the best example.

It's a matter of positioning, and even if you 10x your prices, pretty much everyone you meet after that will likely have never heard of you (or forgot) when you were charging the low prices.

You can build case studies and testimonials for free and then charge $300/hr and your clients will be none-the-wiser, and as long as you deliver and they're happy, there's nothing wrong with that.

Increasing your perceived value is a process like any other.

That's right. I just used Lamborghini as an example to prove my point. There's a market for that product. With cars it's obvious; you got Ferrari, Rolls Royce, McLaren, Bentley, Porsche, Bugatti etc.

 

[Mac]

Honestly $2K - $3K per month isn't premium IMO. Premium pricing starts at $10K and beyond.

 

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[shakshak]

that higher prices always mean higher value

Price is a complex matter containing many opportunities. Who you are selling to and who you are (perceived to be) to them has more to do with acceptance of prices than does what you are selling. This is a very difficult reality to grasp, then profit from, because most marketers are product-centric, and stuck there by deeply ingrained habits of thought. How you sell and where you sell has much or more to do with price acceptance than what you are selling.
There is a different expectation of price and different sensitivity to price if sitting at Mcdonalds or in a five star restaurant. In short, price exists in context.