Cara Lumen | Sing a Deeper Song

Sing a Deeper Song

pricing

Why You Are Worth More than You Think You Are

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Passionately On Purpose Radio with Cara Lumen, Your Idea Optimizer, who keeps you passionately on purpose while you make a difference in your world. As a Business Coach, Content Developer and Educator she talks about how to uncover your passion, define your purpose, identify your path, make money from what you already know and attract the people you are meant to serve. But most of all, she’ll help you believe you can!!!  Join her Mondays on www.blogtalkradio.com/passionatelyonpurpose

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It’s time to raise my prices. Why? Because I am worth more. I know more than I did a year ago. I have more experience than I did a year ago. I am more skilled in how I offer what I do. So what’s stopping me?  Me.  Let’s talk about why you are worth more than you think you are.

 

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Know Your Value, Value What You Know

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by Cara Lumen

I didn’t get the bid but I sure learned a lot about how I can and must value what I have to offer. How do we make that shift, that shift that keeps us from underselling ourselves, or our services, or even our expectations. 

Know how much you know
 
This was a bid to write a teleclass for someone else. I’ve written tons of teleclasses for myself and have been asked if I would consider writing for others but I never perused it. So I decided to bid on this opportunity. Now I’ve been well trained, I’m a Certified Teleclass Leader and I’m experienced and through the years I have added creative elements to my teleclasses so the students get great value.
 
This project was based on a 52 page book. If part of the teleclass series is to read the book – guess what –you’ve gotta add more content. And because it’s a learning environment you have to create experientials that help the students own the material.
 
That comes out of my brain, my knowledge, my background, my experience.
 
And that has great value.
 
Do it right
 
Giving a teleclass is not just about talking and hanging out. It’s about offering more than they expect; it’s about organizing your content so they get it! So that they go away with a shift in their awareness. And that takes planning. And knowledge. And insights. And thought.
 
And that has great value.
 
So in my bid I added all the small things I know how to do to build community and keep the learning process going.
 
It is very effective.
 
Bid its true value
 
It’s tricky to bid copy writing. You really don’t know in advance how long it will actually take you. A copy writing colleague of mine suggested I bid by the day or half day. That allows for whatever takes longer than you figured on. Then she told me to decide what I wanted to earn per day and create the bid.
 
One other thing influenced my bid. This is material that can be repeated over and over after it is created so it has a long shelf life. It will keep on generating income.
 
I considered that in setting my price.
 
List the extras
 
In my bid I listed all the extras – my own teleclass template, the community building material and on the bid simply marked it "included."   That clearly indicated the extra value I was providing.
 
See what new doors it opens
 
But here’s the big gift – it opened up a new place of service for me. I put my copy writing and content editing services back on my web site and wrote a sales page about creating teleclass and workshop curriculum for others based on what I decided and discovered while creating this bid. When other people ask you to do something for them – listen. See if it’s what you love to do, see if it’s profitable and add it to y our services if it would be fun to do.
 
Value what you know
 
It turns out I had a bigger vision than the person looking for a bid, or maybe a greater sense of the value I had to offer when I start bringing everything I know into a project. I could have lowered my bid, or taken things out – but that wouldn’t have made it as top notch as I want all my work to be. I don’t want to settle I want to play big and bigger.
 
And you know what, a few days later I was hired for a really big curriculum development project by someone who knows my value and values what I know.
 

© 2009 Cara Lumen

Why You Are Worth More Than You Think You Are

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by Cara Lumen

 

It’s time to raise my prices. Why? Because I am worth more. I know more than I did a year ago. I have more experience than I did a year ago. I am more skilled in how I offer what I do.

 

So what’s stopping me?

 

Me.

 

It’s not about time

 

I have a web designer friend who sometimes says, "But it only took me an hour to do that." And I have to remind her to think what the value of her design is to her client. How many years it will be in place. How much income it will bring her. It’s not about how much time we take to do it, it’s about the value we give.

 

It’s not about money

 

Sure, there are people who spend time looking for the lowest price and pit vendor against vendor to save a few pennies. We have to let them be the judge of how best to use their time and resources. But each of us offers so much more than money and we must incorporate that added value in our pricing.

 

It is about the intangibles

 

You want to attract people who value you because they relate to you, because you understand their needs Look beyond the tangibles to place a value on the underpinning of the service you offer.

 

Reliable service has value

 

Never underestimate the value of offering reliable service. Only if you have wasted time waiting on someone to fulfill an order or create a project upon which others must act do you understand the full impact of reliable service.

 

If you get things completed when you say you will and if your back end system is efficient and fulfills orders on time, that is worth money to your customers and clients.

 

Understanding your clients’ market adds value

 

As you expand your own knowledge of your clients’ market base, you increase your value to them. Because of your knowledge of their competitors, your client will be miles ahead in their field. Think how that enriches the value of your offerings.

 

Strong project management adds value

 

Remember a time you had to work with someone who was disorganized? It was a mess. Things got lost, they didn’t get their work done and there was confusion even in the conversations you had. Huge amounts of time were wasted.

 

I’ve worked hard at my project management. I have a strong intake form that helps both my clients and me identify what is in place and what is missing that we need to develop. I developed a Coaching Call Prep Form that allows the client to report their weekly progress. It allows me to quickly tune in before a call to see where we left off and what we planned to do in the next call. I send them their weekly assignment right after each coaching call.

 

Strong project management keeps efficiency at a premium and saves both you and your client and money.

 

What your time is worth to satisfy your own financial objectives

 

This is not about anyone but you. What do YOU think you are worth? How does your financial math work out? How many hours do you need to spend with clients to meet your personal financial needs? How much time do you spend with marketing, with administration? How many hours are there that you want to work? How many do you not want to work? These are choices only you can make.

 

Do you just want to "get by?" Are you playing it "safe?" Or can you raise your vision and your expectations of what you would like to earn? Even if you are staying within your comfort zone at least move to the outer level and set your intention at least two steps beyond that. Growth is good. Higher expectations are good.

 

Giving wise counsel has more value than you can ever put a price on

 

My brain is worth more than my service. My brain things up fabulous ideas, it sees possibilities where others don’t, it recognizes the connection between one idea and another, it holds a vision of success for my clients.

 

What possible price can I put on that?

 

It is invaluable.

 

NEVER permit competitors, industry norms, or community norms to set YOUR prices.

 

Look at these intangibles. Give some thought to how much value they add beyond the time you spend with your clients. YOU decide what you are worth. Then find the kind of client or customer who has reason to accept your evaluation of that worth.

 

© 2008 Cara Lumen

It’s OK to Charge for Thinking….

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It’s really ok to charge for the time you spend thinking about and for your client, It took me a while to figure that out – until I realized that the time I spent studying the clients present material and position, letting the myriad of ideas that came to mind expand my vision for them, and then giving a lot of thought to the best direction for them to take was the most valuable aspect of my services.

And at one point I wasn’t charging for that!

I expect to include 15 minutes before and after a coaching call with the price of the call. I use the first 15 minutes to study their Coaching Call Prep Form to see what they have accomplished and what they want to talk about. That form also lists their homework for the past week so it is easy for both of us to keep moving forward. The 15 minutes after the call is spent in condensing my notes into the Coaching Call Prep Form for the next session.

Humm, let me think. Knowing that I spend an hour and a half per coaching call makes me wonder – am I charging enough? Perhaps not.

But it was when I started tracking the other times I spent planning for a client that I began to build a Planning Time & Review Charge into my proposals.

For instance, when it comes to web design I partner with Judy Stewart of www.jstewartdesigns.com. She’s the artist. I’m the content developer. But we may spend 30 minutes on the phone working out details of a design or copy placement for a client. Why should either one of us give that important time away for free.

Another client had a very complex site that he wanted to redo and I spent about an hour and a half studying his site, and figuring out the best site map navigation and plotting our strategy. I need to be certain I charge for that. It is after all, the core decision making process that will fuel our mutual success.

Don’t sell your brain power short

I’m selling my brain power – my creativity, my intelligence, my vast spectrum of knowledge and experience. I’m selling my ability to see the client’s vision and help her bring it into a tangible and profitable internet business. That’s worth something. In fact that’s worth a lot!

In your proposal build in special pricing for planning – your planning time. It takes time to read through a new client’s web site and get a picture of who they are and what they want. It takes time to update and track the decisions and planned actions. I have a very strong Client Intake form that I ask my clients to fill out before we begin. It takes time for me to read that and pull out the strategy we should pursue.

Put a price on your thinking

I have two types of pricing. One is for a coaching session. The other is for the time I spend writing copy, strengthening copy, doing research and designing their marketing strategy. I charge by the quarter hour and I list on the invoice exactly what I was doing – created site map, wrote copy for home page, etc.

Don’t give your ideas away for free

I also don’t give a free consultation. I have too many great ideas that will make money for my clients to give them away. I do have a free initial exploratory conversation to discover their needs and how I might best serve them. Then I write a proposal – a Scope of Action. This gives me time to look at the notes I took while I talked to them and personalize my proposal and plan exactly how I’d like to proceed and what the client can expect to accomplish and by when. I also send them my Magnetic Marketing Method Client Intake Form which gives me powerful information upon which to build our sessions.

It’s hard to predict how long we will work and I’m still working up the nerve to say “You need to work with me for six month.” I know I have to have ten sessions minimum to bring the content for a complete web site into readiness. I probably ought to make it 12. People usually want boundaries – an end in sight – an estimate for their budget.

I have several packages of varying lengths for coaching but I always add a price for my thinking time in my proposal. No one has every objected. My intelligence and creativity is the most valuable thing I offer and it’s worth every penny – or should I say every dollar!

It pays to get paid for thinking!

The Psychology of Pricing – How to Position Your Products to Sell

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In his article “Pricing tips for selling in a tough market” in the Wall Street Journal, Jonathan Clements presented pricing tips for the difficult housing marketing. Using this universal psychology of pricing I have translated his concepts to help you price your products to sell.

Make your first number count

Have you noticed how $4.99 looks like and feels like a lot less than $5.00? Manoj Thomas, a marketing professor at Cornell University’s Johnson Graduate School of Management explains, “We read from left to right so we anchor our judgment on the first thing we see. We make that judgment in a fraction of a second.” A $99 home study course will look more affordable than a $100 one. A $124.75 teleclass series will feel like a better bargain than the same one at $125. Pay attention to number on the left. It’s the one your prospect will remember.

Make effective price comparisons

One study of price comparisons found that, if the left digits are the same, buyers will focus on the right hand numbers. Thus an ebook at $12.75 feels a lot more expensive than one at $12.54. Have you ever been on Amazon ordering a book from an outside source? The prices vary by only one penny, but you inevitably go for the cheapest one. We love bargains.

It also turns out that buyers perceive the discount to be larger if those numbers on the right are declining from two to one rather than from nine to eight. Go figure.

Sometimes comparisons get out of hand. Have you ever been on a sales page that says you are getting $3,572 worth of bonuses? I personally don’t need that much information, so it is a comparison that is not compelling to me. But if you tell me there is an Early Bird Special in which a $125 teleclass I’m considering is available for $99 I may jump on it. And you know what, that’s a 20% savings. Which number did you respond to—the dollar amount or the percentage amount? I’m a dollar and cents type of person but it doesn’t hurt to use both in your copy providing it’s a good percentage drop.

What is a reasonable price?

The best way to make a pricing decision has never been determined. There are guidelines, but no easy to apply rule. Obviously you want to be within the range your market dictates. When I priced my first ebook, a colleague said, “Oh well, you can always offer a discount.” I knew then that I had priced it too high. You may not be able to sell an ebook for $29.95 since you are probably sitting there with a bookshelf full of very informative hard cover business books that average $12 each. It’s very common to look at the amount of effort that went into creating your product and over price it.

Another decision is what your target market can afford. Eckhart Tolle prices his book A New Earth: Awakening to Your Life’s Purpose at $7.70. In doing so he made it available to anyone who wants it. He wants to get his message out. And it will be since he’s an Oprah book club selection. Suze Orman felt so strongly about getting her message to women that for 24 hours she recently gave away a free PDF of her book Women and Money also through Oprah. If you have a book that you want to reach as many people as possible, keep it in a price range that will entice them.

Another consideration is that academics are used to paying more for a text book than the average reader. Research your market and stay within a reasonable price range for those you want to buy your product and services.

Do you want to convey quality or a bargain?

An interesting discovery about the psychology of pricing is that a round number will convey quality. A precise number will indicate a bargain. Vicki Morwitz, a marketing professor at New York University’s Stern School of Business says that’s because we associate precise numbers with lower-priced products. A precise number also indicates you have given a lot of thought to your pricing. Look at Amazon prices, the last two numbers are all sorts of un-rounded numbers – $14.37, $12. 64. It makes you feel like you are really getting a bargain because you assume they have arrived at those prices in order to be the lowest source for that product.

Make the discount easy to calculate

Make it easy for your buyer to relate to the price cut. If it is difficult to do the math, they will perceive the savings as small. A drop from $149.85 to $127.48 taxes anyone’s math skills. But with a drop from $149.85 to $129.85 you can see a $20 savings. And in a drop from $150 to $130 the $20 savings is extremely clear.

Instead of cutting prices, add bonuses

In my coaching practice I have two ways for people to pay for my major package. They can pay in two payments, or if they pay in one payment, they get a bonus of four of my ebooks that are related to what they will be doing in our coaching sessions. My reasoning? Every time a prospect pulls out her credit card, she has the opportunity to reconsider the purchase. Fortunately my shopping cart can automatically charge monthly payments but my clients have an opportunity for some valuable bonuses if they pay in full. What kind of added value can you add to your bundles?

Don’t stay married to your price

Price your product or service reasonably and if it doesn’t sell lower your price. If it rushes out the door, consider raising your price. You could easily do some split testing by having identical sales pages with different prices and send half your list to one and half to the other and monitor the results.

Give it time

It takes prospects as many as nine exposures before they purchase. That’s why building your list is vital to your success. An opt in list gives you permission to market. The prospects are willing to hear from you again. Through emagazines and special offer promotions, you will have time to speak to them often enough to build their trust and get ultimately them to purchase.

One last thought on information products

An information product is not your business, it is an adjunct to your business. It enhances your expert status, it lets people move up your marketing funnel. When people come to me for help in developing an information product, I make certain they have a strong name capturing system in place on a compelling web site with strong content that stimulates conversion. Laying that strong foundation is paramount to your success. Then you can create all the products you wish and use the psychology of pricing to position your products to sell.

Want to post this article in your emagazine? You may as long as the unedited article is printed in its entirety, and you include the copyright notice and the following statement:

Cara Lumen, The Vision Distiller, helps pro-active entrepreneurs translate their passion into a profitable presence on the internet with a minimum investment by using time, energy, information, and imagination. Through The Magnetic Marketing Method she offers innovative, inexpensive, and impactful ideas for internet marketing, content strategy, and signature product development. Her own information products are noted for their clarity and richness. Find more articles like this in The Success Magnets Emagazine at www.caralumen.com