Beloved, let's talk money for a moment.
At FeleciaKillings, we spend extensive time discussing the systems that are used to build a thriving business or ministry. But we don't often talk about the "elephant in the room" when it comes to this work: how much money should be charged for your products or services.
When beginning this journey, quite often new writerpreneurs fear over-charging their services. So most of them undercut their fees or book prices instead of considering how best to position themselves in the market.
So, for today's Empowering Post, I want to share with you how I developed our pricing system that reflects our business's long-term financial goals. I will teach you why value is the important factor when it comes to pricing. In addition, you must also understand your ideal market and what they are willing to sacrifice for your offer.
So, without delay, let's get straight into this teaching.
Your Brand Determines Your Prices
Walmart and Target.
Apple and Samsong.
Forever 21 and Nordstrom.
I think you get the idea I'm pushing here. When we see these name brands, we instantly consider how their merchandise matches against one another. A mother who readily shops at Walmart has clear expectations about the prices she will pay for her purchases. This same mother who travels to Nordstrom will realize finding cheap, discounted products will not be as easy.
In other words, every brand fits within a particular price bracket, because each brand is specifically targeting a certain demographic. Forever 21, for example, will not appeal to professional women who work in corporate America. Such women aren't looking to be "forever 21" while paying low prices for cheap garments. This demographic will want high-quality pieces that last, because they are among a different world.
The same goes for other brands who desire to reach a particular buyer.
When thinking about your online business, you need to consider how your brand will reflect the prices of your products or services. Are you looking to sell thousands of tiny e-books for $0.99 each? Does your brand reflect the "Dollar Store" mentality where people can easily access your content for next to nothing?
Or is your brand more for the upscale market? Are you reaching a demographic that is more educated, sophisticated, and expensive? However your brand is positioned in the market, you can best ascertain the prices for your products and services.
Consider the Value You Give to the Market as Well
Quite often, we must ask ourselves how much our products and services are bringing value to our audience. Now, certainly value can be hard to quantify. Nevertheless, you can think about the prices for your works based on the wealth you bring to your buyers.
Case in point: Let's say you've constructed a 55-page book that teaches single mothers how to save $500/month on childcare. Obviously, the mother paying $1,000/month for this service will look to your resource as a solution. To her, your book is extremely valuable. But how much is she willing to pay for your book is the question.
You can consider your pricing based on the need-desire emotion. This single mother needs your resource because she is eager to save money. In addition, she desires economic empowerment, which means she's willing to sacrifice more on the product in order to obtain it.
In this case, I would encourage you to charge $55-$95 for your book. After all, you're promising her that if she adheres to your book's lessons, she will save $500/month on childcare. The value you bring to her life can be quantified; and in this case, she is more willing to purchase your product than, let's say, the $1 book that can't fully deliver.
Again, value is key here; and at FeleciaKillings, we consider both our brand and our value when pricing our services and digital products.
Our newest offering -- communal living arrangements -- is the most expensive service we offer to the market. When I first developed this concept, I considered my own experience back in Sacramento when I participated in an informal communal living area.
At one time, I paid $650/month for one bedroom and a shared bathroom. In another instance, I paid $600/month for two bedrooms and a private bathroom. In each case, I dealt with a homeowner who didn't keep her home as clean as needed. In addition, we had no guidelines or structure that would help each of us live comfortably in one house.
So, as I considered how to create a profitable, empowering communal living, I crafted KillingsVille, which delivers everything a single mother like myself would need to prosper:
Given all we offer in KillingsVille, our cost for communal living is $2,000/month with a mandatory 24-month commitment. Our arrangements are in prime locations in Atlanta, GA. And our program is designed for women to commit to their business or ministry full-time. (Think of KillingsVille in the way college students attend universities while living in dorms. Rather than having our women abide separately in various regions, we place them in upscale houses so they build their empires among fellow writerpreneurs.)
Conservative Consultant Training: $10,000
The other service we offer is our conservative training workshops for political organizations that wish to grow their influence among black voters. I will be honest: it took me a couple years to decide how I wanted to market this service, because in the political space, a conservative consultant can charge upwards of millions of dollars for his brain power.
But what I discovered is in order to reach that mark, I would need to work with campaigns or organizations that generate enough to pay such fee. In truth, I have no desire to work with groups of that magnitude, because they don't listen. They annoy me with their arrogance and ignorance; and there's not enough money in the world that would entice me to endure such behavior.
Instead, I want to work exclusively with smaller conservative organizations that are in the infant stage. They are more opened to new ideas and modern methods of outreach. They're profitable enough to afford my weekly training fee while small enough to respect my brain power.
So, when asked about my consultant fee, I charge a flat rate of $10,000 for 5 full days of training their communications department. In exchange, I teach them how they will save hundreds of thousands of dollars in marketing fees by reaching black audiences authentically and organically.
LiyahAmore University: $3,000
Our third offer is enrollment into LiyahAmore University. When considering this cost, I think about individuals who must pay $12,000+ each year on business training, marketing development, book publishing, and consultation fees. In fact, because the University answers all the questions that go into building an online business or virtual ministry, it's imperative that future scholars recognize the value we bring to their lives.
Most scholars today, especially the ones graduating from high school, are looking for alternatives to traditional colleges. In addition, we have women who want to explore entrepreneurship; but they struggle to find a clear system that teaches them how to prosper.
That's where LiyahAmore University comes in. For $3,000 a year (or $250/month), a scholar can receive advanced training that focuses on helping them create a business or ministry as a creative. In this case, a scholar can determine her own future wealth. If she wants to generate $60,000 as a skilled freelancer, investing $3,000 in her training will help her reach that goal.
If another scholar wants to be a blogger who makes an additional $12,000/year on the side, investing $3,000/year in her training will manifest this easily.
Again, at FeleciaKillings, we don't want our audiences to see us as the place to get their "Dollar Store" purchases. We are more like the "Macy's" of online entrepreneurship and self-publishing. We appeal to professional women who generate at least $36,000/year but who also have a passion to increase right now.
In addition, we market this program to incoming freshmen or college students who want to learn about creative entrepreneurship as a viable career for their future.
If you travel to Our Bookstore, you will see we have a selection of current and future e-books available for our audience. These books contain holistic teachings around a specific theme in our business; and because they provide multiple lessons within one book, we charge based on premium prices. In addition, all our books (excluding my memoirs and our affiliate products) include multiple video presentations, taught by other leading coaches in the industry.
Now, typically when purchasing a traditional e-book on Amazon, you may pay upwards of $15 a book. But we charge a premium for our works because of the value they deliver to our readers. (In a way, each e-book is like a mini-course, which provides an alternative to Beloveds who cannot afford LiyahAmore University.)
In fact, all the books we have are used as resources inside our online school (and is included with each scholar's tuition). And if I were an outsider and wanted to receive training from FeleciaKillings, I would purchase the e-books because I know how to train myself to practice and apply the lessons I learn. (In other words, I do not often need a coach because I know how to teach myself various concepts.)
For consumers who think and learn as I do, the e-books are a wonderful source of training.
Give Your Audience a Solid Idea of Your Premium Prices...and Stick with Them!
One bit of advice I'd give to you is to consider how you want to be priced long-term. For example, it becomes extremely frustrating when consumers know a business is constantly increasing their prices on products. If you're creating digital products (books, courses, etc.), I'd encourage you to determine your best premium price and stick with it. Often times, your readers will truly want your product; but even if they do not have the money to purchase today, they may consider saving towards it for later.
Try your best not to make this purchase more difficult for them than it ought. Don't continue raising the costs just because the gurus say so. If anything, offer a special scholarship into your school for that interested mother; or give a $5 gift card to your Beloved mailing list for your next e-book project. But keep your premium prices solid. This is one lesson I've found to work very well for our business, especially when it comes to projecting our annual financial goals.
The prices I have set for our services and products will remain the same. I don't need to do any gimmicks or pressure tricks to con my Beloveds into purchasing our materials. They know what to expect, no questions asked; and I know exactly what to deliver each time. In truth, the knowledge and systems I deliver to my scholars and clients are priceless. There simply isn't a value point that could truly match my worth; but because I know my audience and I know the kind of organizations I work with, I am confident they will gladly pay my fees in exchange for my brain power.
And that's what you want to give to your audience, Beloved.
Don't sell yourself short on what you bring to the market. Be confident and charge based on your brand and value.
In return, you will find it much easier to project your financial goals while reaching them each year based on a plan of action.
I pray today's teaching was empowering.
Until next time, Beloved, be blessed.
And as always, let's grow together!
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