 Not everything you're going to see today will apply to everyone and Each of the product is different. I work with a lot and a lot of different products and no two recommendations I give at a very the same so you will need to pick and mix and adapt to your own product Let me start with this. Are you sure you are not making a mistake to your pricing because as Catherine Payne says The minute you make a mistake in your pricing you're either into eating into your reputation or your profit This is the checklist we will go to And and I'll go I'll be tackling each point in the next 20 minutes Let's start with value. Let's start with understanding is your price, right? And I'd like to illustrate this with an example the example of wine We've all gone to buy wine and either as a present or for ourselves or when we want to treat ourselves We want to buy a nice water, but let's face it. How many of us are wine experts? What do you do when you choose when you want to choose a good wine? You look at the price You might look at the label But if the price is high and the label isn't so nice, you'll probably believe the price Does that mean the wine is actually better? Do you know the wine is actually better? But you think it is and it has changed your relationship with the bottle of wine when you open it You will actually say this tastes good when you have no idea whether it is or not That's how important price is it can absolutely change the perception of Quality and that's the whole point researchers have found that consumers actually associate low prices with lower quality on the other hand they also Are more likely to purchase with a higher purchase price It sounds weird, but when you think about your own behaviors I'm sure you can think of many times where you actually went for a more expensive object than a cheaper object So my question to a lot of WordPress companies who come to talk to me about pricing is Why do you worry so much about being the cheapest? Are you trying to say your quality is lower? So this is the core question when it comes to pricing. What do you want customers to think about your product? When you're in the wine shop when you're looking at the bottles of wine What do you want people to think about it? That's how you need to tackle your pricing Yeah, so that's the point I'm trying to make here if you really want your your Customers to think about quality then you really need to pay a lot of attention about Charging the right price a higher price can mean losing some customers. This is really important. You cannot win them all But it's actually Probable that you will be getting higher quality clients and you will be able to deliver higher quality work to those clients You are what you charge if you forget absolutely everything I'm saying today. Just take this You are what you charge No marketing campaign no brand no Channel nothing except your price Defines best what you are Does that mean you should go home and Multiply your prices. No That's not what I'm trying to say today We need to find the price which positions your product for the value it brings think about the wine The wine analogy again if we're seeing a thousand euro bottle and the 10 euro bottle Is the thousand euro bottle a hundred times more expensive to produce? No But is your perception of its quality and expectation of its quality a hundred times bigger yes the core question you need to answer when you start tackling the pricing is What is your product value now? This is a very difficult question to answer to be very honest Especially with digital products, but there are key questions which you need to ask What impact does your product have on a customer's site? What does it contribute to their business? What is unique about it? What makes it better or different? How much does it change things for your customers? What are they willing to pay for it? So the question to you is how well do you know your customers and many many many people we work with Sometimes tell us yeah, I have a lot of support tickets. I talk to a lot of customers. I know them well But support doesn't necessarily mean, you know them as well as you should Support is great and I encourage a lot of people to remain in touch with clients via support But you need more Talk to them talk to your customers. Many people just like giving you feedback just asking for feedback always works Just create forms ask for feedback Email them ask for answers interview them Be very specific in your questions. I had a client once who told me but nobody will answer He sent out his questionnaire Everybody answered and then he had a long time reading everything through everything because it turned out his customers loved his product Your current customer will help you understand your future customer You will be surprised when you ask clients how they use your product what you find out I've had many examples of people who have plugins and they have no idea They are being used in particular ways which are giving incredible value to to the people using them So talk to your customers understand how they how they are using your products We are always interested in just finding the right customer Even if if that means Frequently turning away some customers the right customer is more important than all the customers so First you need to understand the customer Then you need to test Testing is crucial because without testing you will it's very hard to benchmark in where it is particularly It's extremely hard to benchmark Where you should be lying so testing is the best way of understanding what your price should be What we want to do is find the profit maximization point It's the price customers are willing to pay and which gives you the right balance between profits And unit sales so there's a point where if you go too far Your sales will dip and if you go too low your sales will go higher But your revenues will dive so you need to find the right balance between them That's your profit maximization point. That's value. That's probably the most important point But let's go through the rest of the checklist Tears another common problem is We see a lot of products which are priced as License for one site license for five sites license for 50 sites were unlimited That that says nothing that just says I either want that amount of sites or I don't You're selling only to people who want more of your products. You are catering to nobody else by by not tiering Your tiers should actually shadow your client's lifetime journey Not the volume of websites. So you should be asking What are the features which are most important at a particular time in the customer's journey? And what features are more important as they grow? What features are become more valuable as their business grows? You really need to tear your products meaningfully because this can really change how much revenue you can deliver to your own business So the question of what your customers are willing to pay for as your as your product grows and there's use of your product grows Is a crucial one to understand Customers just want a product that works for them And on the other hand a product which has too many features in the bottom tier might actually turn people away This sounds crazy But in reality if you you are giving them everything you are giving them a Swiss knife and they just want five things They probably will feel they're they're paying too much for it and they will go look somewhere else So think of what clients actually need and what how they can grow with your product lifetime lifetime is a topic which is discussed quite a lot in WordPress and A long time ago all the products were lifetime But now most are in yearly pricing now It's very difficult if you ask a client And you said them what do you prefer do you prefer to pay a price once or do you prefer to pay every year even yourselves? Well, most people will tell you I prefer once But the reality is the best relationship with a client is a fair one A client wants you to stay around a client wants you to support them a client wants you to continue giving updates That means in most cases Lifetime isn't a good idea because that gives you a revenue injection And that client is with you for as long as you survive rather as long as you grow Warren Buffett very famously said price is what you pay value is what you get so in most cases Lifetime pricing is not a good idea. It's not great for the long-term hurt of your business It's not great for you to grow It's not great for reselling. It's very unattractive if you ever decide to sell your plugin or your product There are a few exceptions If your product is really low in value if it just does something really small on a website and it's not very high high in value and It's just one thing then maybe lifetime is easier because people don't want to think about renewing the license every single year Or if your target market has a typically short lifetime of their own If they were target market your target customers are one year or two year sites It usually benefits you to have a lifetime there because they would usually want to pay something and forget about it Or lifetime is also good if you want to get started fast because it gives you that revenue injection to start And then you can continue But in the long term in most cases lifetime isn't a good idea Last one special offers and coupons I see a lot of offers Going out a lot of the time black friday soon, but let's see black black friday to the to the side This is my favorite way of putting it discounting Rarely is a good idea But discounting rarely is a good idea It's a very important difference on where you put the emphasis on that sentence This slide is really important. So I'll bring it back. You are what you charge So if you keep discounting your prices, you are telling your customers My product is not worth what I say it is If you discount too many times you are reducing your value perception And you are putting trust in your product It creates a really horrible vicious cycle because you need more revenue Therefore you need more customers that you're going to increase the discounts and you go around and around and around in Circuits This is a quick tip This is one thing you can do when you go home remove a coupon code from your checkout. Just remove it Why because it gives people anxiety It gives makes people stop and go wait. Should I be getting a better? Price just remove it bring it back when you need it or use you are as instead Discounts are a good idea sometimes black friday I would recommend doing black friday as the only sale of the year Everybody's doing it join in and try and get as much as you can out of it. That's a good idea Small discounts on remarketing ads or emails and what I call last-ditch scenarios So you you've lost a customer. They've stopped the renewal And you know, you're not going to get any more revenue at that point It might be worth trying to give them a private discount to bring them back Otherwise, you're not going to get anything out of them. Anyway, so that's the full checklist Let's go through a few Final final tips when changing prices keep your current customers happy. Keep them in focus They get what they paid for whatever mistakes you may have done with pricing You need your customers to remain with you. So don't raise their prices. It's not a fair relationship There might still be ways you can get more revenue with them as your product grows So don't don't worry too much about that A lot of time I get the question. What about my competitors? What about them? But if you're talking about value, my answer to that is always the same Is your product better than your competitors? If it is, then don't worry about your competitors It's as simple as that It's rare. This is really crucial as well. It's rare that you should stop testing I do not think that a price which has been static for more than I don't know 12 months Is is probably at its price max profit maximization point Keep testing. Sometimes it will go wrong and you have to go back And sometimes it will go right and you have and you should keep it We have seen companies actually triple their revenues in a year