3 Ways to Price a High-Ticket Offer
Got questions about how to price a high-ticket offer? You’re not alone.
Some questions I’ve heard are:
- “Is there a minimum price for a high-ticket offer?”
- “How do I price my high-ticket offer so it’s high enough, but I don’t seem greedy?”
- “What’s the right price to set so I’m not underselling myself?”
Glad you asked!
First, let’s establish that a high-ticket offer is anything priced at $2000 or above. That being said, sometimes I encourage people to price their offers at $2000 and sell their first one for $1000 just to have a successful sale. But you can’t consider whether to discount your first high-ticket offer until you have a firm price for a ‘regular’ sale.
Also, these formulas are designed for a Signature System, which is a particular kind of high-ticket offer. If you’re just doing a ‘package of 5 sessions’ it’s difficult to turn that into a high-ticket offer.
Want to know if you have a good high-ticket offer? Schedule a free session with one of our coaches here.
Here are my top 3 high-ticket offer pricing formulas:
1. Cost-Per-Hour (CPH) Pricing
Calculate the number of private hours that you will include in your high-ticket offer. Now multiply that number by $300 and by $500. That’s the range of ‘Cost-Per-Hour Pricing’.
For example, if you will include six private hours of work with you, the CPH Pricing will be between $1800 and $3000.
2. Transformational Pricing
Transformational Pricing is based on the question ‘How much is this transformation worth?’
For example, you may say that removing the stress from someone’s life may be worth $5000. Helping someone find their soul mate may be worth $3500, or $7500.
While transformation is always ‘priceless,’ you’ll set a fee that you feel great about, based on the results that your clients can expect.
3. Bandwidth Pricing
How many clients can you actually serve? If you know that you only want to take on ten clients every three months, then you need a pricing structure that gives you the money you want in a year with no more than 40 clients (40 would be the maximum number of clients you can serve in a year).
If you want to make $100K, you would need to have a client pay no less than $2500 (40 x $2500 = 100K).
You can also scale to offer group programs at a different price point, but that requires that you build your audience and your platform, so for now we’ll keep the math simple.
Hint: When you set up your high-ticket offer as a Signature System, you’ll be able to handle far more clients without sacrificing your private time.
Which one of these do you use? Why not calculate a price based on each of the formulas, and then average them? Alternately, take the pricing formula that feels best to you after calculating all the prices.
The final step is to apply the Rounding Formula.
You want your price to be a familiar type, such as $1997, $2500, $2997, $3500, etc. So, if your favorite formula above works out to $2150 or $2875, that doesn’t mean that you set your price there.
Usually, round numbers indicate luxury or excellence. When you price at $2500, $3500, $5000, or $7500, you’re suggesting that you have an upscale offering. So, if you figure out that your price should be around $2200, or $2400, you could set it at $2500.
When you price at $1997, $2997, or $3997, you’re making a statement that you’re providing excellent value for the price. It’s a slightly different message. If you figure out that you want to price at about $2100, go down to $1997.
Note: Too many different digits (like $2497) are hard for people to comprehend and ultimately negatively impact sales.
Either Rounding Formula can work – it depends upon your brand.
So pull out your calculator and figure out what you’re going to charge! Your high-ticket clients are waiting for you, but only when you’ve priced right.