Pricing Strategy That Converts

Price too high? No sales. Price too low? No profit. Let's find your sweet spot where customers happily pay and you build a thriving business.

The Psychology of Pricing

Before we talk numbers, understand this: Price is a story. It tells customers:

• How much you value your expertise
• Who this is for (premium vs. budget)
• What kind of results to expect
• How serious they need to be

The 5 Pricing Models That Work

1. One-Time Payment

Best for: Complete courses, definitive solutions

Pricing range:

• Mini course: €27-97
• Full course: €197-997
• Premium program: €1,997-9,997

Psychology: "Pay once, own forever" feels safe

2. Subscription Model

Best for: Ongoing value, communities, content libraries

Pricing range:

• Basic access: €19-47/month
• Premium tier: €97-297/month
• VIP level: €497-997/month

Psychology: Lower barrier to entry, proves value monthly

3. Payment Plans

Best for: High-ticket offers, B2B sales

Structure:

• 3-pay: Total price + 10%
• 6-pay: Total price + 20%
• 12-pay: Total price + 30%

Psychology: Makes expensive accessible

4. Tiered Pricing

Best for: Different customer segments

Example structure:

• DIY: €197 (course only)
• Done-with-you: €497 (course + group support)
• Done-for-you: €1,997 (course + 1-on-1)

Psychology: Lets customers choose their level

5. Dynamic Pricing

Best for: Launches, seasonal offers

Timeline:

• Early bird: 40% off
• Regular: Full price
• Last chance: 20% off
• Evergreen: Full price + bonuses

Psychology: Rewards fast action

Finding Your Perfect Price Point

The Value Equation

Perceived Value = (Dream Outcome × Perceived Likelihood) / (Time Delay × Effort Required)

Maximize price by:

• Making dream outcome bigger
• Increasing certainty of success
• Reducing time to results
• Minimizing effort needed

The 10x Rule

Your offer should deliver 10x the value of its price:

• €100 product = €1,000 in value
• €1,000 program = €10,000 in results

The Anchor Method

Always show the highest price first:

❌ Wrong:

• Basic: €47
• Pro: €97
• Premium: €297

✅ Right:

• Premium: €297
• Pro: €97
• Basic: €47

The first price becomes the anchor. Everything else looks affordable.

Testing Your Price

The Price Sensitivity Test

Ask potential customers:

1. At what price would this be a bargain?
2. At what price does it start getting expensive?
3. At what price is it too expensive?
4. At what price is it so cheap you'd question quality?

Your optimal price sits between questions 1 and 2.

The 3-Split Test

Run three landing pages simultaneously:

• Page A: Current price
• Page B: 30% higher
• Page C: 50% higher

Measure:

• Conversion rate
• Total revenue
• Customer complaints
• Refund requests

Often, higher prices generate MORE revenue.

Currency & International Pricing

Psychological Price Points

Different endings convey different messages:

• Ends in 7: Perceived as discount (€97, €297)
• Ends in 9: Standard retail (€99, €299)
• Ends in 0: Premium/simple (€100, €300)
• Specific: Calculated/justified (€127, €384)

Regional Pricing Strategy

Adjust for purchasing power:

Currency Display

Show prices in local currency:

• Reduces conversion friction
• Increases trust
• Improves payment success

Set up in: Settings > Payments > Currencies

Discounting Without Devaluing

Smart Discount Strategies

Do:

• Limited-time offers (urgency)
• First-time buyer discount (acquisition)
• Bundle discounts (increase AOV)
• Annual vs. monthly (cash flow)

Don't:

• Discount constantly (trains bad behavior)
• Deep discounts >50% (damages perception)
• Apologize for prices (shows weakness)
• Race to the bottom (kills profit)

Alternative to Discounts

Instead of reducing price, add value:

• Bonus modules
• Extended access
• Group calls
• Templates
• Fast-action bonuses

The Perfect Pricing Page

Elements That Convert

1. Price Anchoring

   Regular Price: €497 (crossed out)
   Today Only: €297
   You Save: €200

2. Value Stack

   Main Course: €997 value
   Bonus Templates: €197 value
   Community Access: €297 value
   Weekly Calls: €497 value
   Total Value: €1,988
   Your Investment: Just €297

3. Risk Reversal

   • 30-day money-back guarantee
   • "Try lesson 1 free"
   • Success guarantee
   • No questions asked

4. Urgency Elements

   • Countdown timer
   • Limited spots
   • Bonus expiration
   • Price increase warning

5. Payment Options

   • One-time (save money)
   • 3-pay (easier today)
   • Monthly (lowest barrier)

Pricing Objections & Responses

"It's too expensive"

Response framework:

1. Acknowledge the investment
2. Shift to value/ROI
3. Offer payment plan
4. Compare to alternatives

Example: "I understand €497 is an investment. Consider that just one client using these strategies pays for the entire program. Most members earn back their investment within 30 days. Plus, we offer a 3-payment plan to make it easier."

"I can find it cheaper elsewhere"

Response: "You're right, there are cheaper options. There are also more expensive ones. We've priced this to deliver maximum value while ensuring you get the support needed to succeed. Would you rather save €100 now or earn an extra €10,000 this year?"

"I need to think about it"

Response: "Absolutely, this is an important decision. While you're thinking, consider that the bonus worth €197 expires in 24 hours. What specific concerns can I address to help you decide?"

Raising Your Prices

When to Raise Prices

Raise when:

• Demand exceeds capacity
• Refund rate is <2%
• Testimonials are overwhelming
• You've added significant value
• Competition charges more
• You're working too much for too little

How to Raise Prices

1. Grandfather existing customers

   • They keep current rate
   • Builds loyalty
   • Creates ambassadors

2. Announce in advance

   "Prices increase to €X on [date].
   Lock in current rate before then."

3. Add value with increase

   • New module added
   • Extended support
   • Bonus included

4. Test with new customers first

   • Keep existing funnels
   • Create new landing page
   • Measure conversion difference

Pricing Mistakes to Avoid

Mistake 1: Competing on Price

Problem: Race to the bottom Solution: Compete on value and results

Mistake 2: Confusing Options

Problem: 10 different packages Solution: Maximum 3 clear options

Mistake 3: Hidden Fees

Problem: Surprise costs kill trust Solution: Show total price upfront

Mistake 4: No Payment Plans

Problem: Losing high-ticket sales Solution: Offer 3, 6, or 12 payments

Mistake 5: Apologizing for Price

Problem: "Sorry it's expensive but..." Solution: "Investment in your future..."

Your Pricing Optimization Checklist

Weekly:

• [ ] Review conversion rates by price point
• [ ] Check competitor pricing changes
• [ ] Monitor refund rates

Monthly:

• [ ] Survey customers on price perception
• [ ] Test new price points
• [ ] Analyze revenue per visitor

Quarterly:

• [ ] Full pricing strategy review
• [ ] Adjust for market changes
• [ ] Update value propositions

Advanced Pricing Tactics

The Decoy Effect

Offer 3 options where middle looks best:

• Basic: €97 (makes others look valuable)
• Professional: €297 (most choose this)
• Premium: €997 (makes Pro look affordable)

The Prestige Strategy

One ultra-premium option:

• Standard: €497
• VIP: €4,997

Even if nobody buys VIP, it makes Standard look accessible.

The Ascending Model

Start tiny, increase over time:

1. Tripwire: €7
2. Core: €197
3. Upsell: €497
4. Backend: €1,997

Each purchase makes next more likely.

Action Steps

1. Today: Calculate your true value delivery
2. Tomorrow: Research competitor pricing
3. This week: Test 30% price increase
4. This month: Implement tiered options
5. This quarter: Optimize entire pricing strategy

Remember: Your price is a promise. Promise big, deliver bigger, and price accordingly. The world needs your expertise—price it like you believe that!