013: How To Price Your Digital Products & Services
Jun 4, 2024
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Digital product pricing expert Matt Ragland and digital marketing specialist Tim Forkin discuss the Value Ladder framework for pricing, ranging from high-end offers to free options. They emphasize starting at the top of the ladder, transitioning to group services, and the importance of over-delivering value to customers.
Start pricing at the top of the value ladder for high-ticket items targeting a niche audience.
Strategize pricing to include offerings at different price points and levels to cater to diverse audience segments.
Deep dives
Understanding the Value Ladder Framework
The podcast delves into the concept of the value ladder framework, showcasing how creators can price their digital products and services effectively. By simplifying the framework, the episode explains how creators can offer products at various price points and tiers to cater to different audience segments. Examples include pricing strategies for digital products, courses, coaching, and consulting services based on different access levels.
Starting at the Top of the Value Ladder
The episode advocates for starting at the top of the value ladder when pricing products or services, emphasizing the benefits of offering high-ticket items to a smaller, more targeted audience. It highlights the advantages of finding one or a few high-paying clients rather than many lower-paying customers. Examples include high-tier coaching, service work, and the economic efficiency of securing fewer clients at higher price points.
Challenges of the Middle Tier Pricing
The podcast discusses the challenges associated with pricing products in the mid-tier range, such as $500 to $700, citing the difficulty of convincing customers to invest in this price segment. It emphasizes the importance of over-delivering value in mid-tier products and provides insights on market expectations for courses and digital products within this pricing category.
Strategies for Lower Tier Pricing
The episode explores the do-it-yourself, done-with-you, and done-for-you concepts within the value ladder framework, detailing how these tiers signify levels of customer engagement and service provision. It mentions examples of lower-tier offerings like templates, ebooks, live workshops, and the importance of differentiating offerings based on customer involvement and pricing strategies.
Every creator asks this question. Don’t worry, we’ve got you!
In today’s episode of The HeyCreator Show, Matt Ragland (@mattragland) and Tim Forkin (@timforkindotcom) walk through the Value Ladder framework, discussing how you can scale the same offer up and down the ladder to different price points and levels of involvement.
(0:00) — Intro
(1:00) — How should we think about pricing?
(2:55) — Where to start on the Value Ladder (VIP)
(9:50) — Going down the ladder (High)
(13:53) — The worst place to be (Mid)
(20:03) — Do not price at this number
(28:15) — The low-end of the Value Ladder (Impulse + Free)