Your Competitors Can’t Compete
Because our competitors can’t compete if we have twice or three times the amount of content that they do at the same price point. They can’t compete with us because everyone forever more will be comparing their product to yours. That’s strategic. That’s what you’re doing because it makes you look better in the marketplace.
When I talk about price point there will always be exceptions to the rule, but in this particular case, I believe getting your price point to between $2,000-5,000 is where the sweet spot exists. That’s where you want to be. That’s where you will make the most amount of money in the shortest period of time.
It’s very important to remember, you can’t just arbitrarily choose a price point. You need to create a product that is suitable for your market, at a price point that is suitable for the market. Because if no one buys it, then you’re stuck with nothing, and that’s definitely not what you want.
Some of you may be starting at a lower price point and some of you may be higher. The question really is, “how do you determine what price point you want, and how do you determine how much content to include?” Now, this is where you have to think about how much your time is worth? How much does an average product sell for in your market? And things of that nature.
I believe you should value your time at between $150 to $200 per hour, and I think $175 is the sweet spot. So, when you look at a price point of $497 that would mean an approximately 3-hour long information product. (497 / 175 = 2.8). $997 would equal to approximately a 6-hour product, and $1997 would be approximately 12 hours. At $2,497 your information should reach approximately 14 hours.
For price points higher than that, you probably wouldn’t make the product longer. For example, using this formula a $4,997 product would be about 28-hour, and that’s just too long.
- $497 – Approximately a 3-hour product
- $997 – Approximately a 6-hour product
- $1,997 – Approximately a 12-hour product
- $2,497 – Approximately a 14-hour product
- $4,997 – ???? – Additional bonuses, coaching or one-on-one time
- $9,997 – ???? – Additional bonuses, coaching or one-on-one time
Once you go beyond 14 hours’ worth of content, you need something else to increase the product value—something like additional bonuses, coaching, or one-on-one time.
When I charge $5,000, and up, for a product a person receives additional training, additional coaching, and possibly some
one-on-one personal time. For example, with my $10,000 program, you come to my house and spend a day with me. I help you design and build your whole business for the day and then, I work with you for the next 12 months. You come back to my house up to an additional six days throughout the year in group sessions. It’s not just a course—it’s a coaching program.
That’s pretty much what a $5,000 to $10,000 program is going to look like. We price our actual courses up to about $2,500. Above that price point, I feel your product should be more of a coaching scenario.
Let’s look at courses. You need to start thinking about how to break this down. When I’m talking about a course layout, the first thing we have to do is make a list of our primary key points.