The Power of Pricing

In this conversation, Dayle and Jamie explore the complexities of pricing strategies for businesses, emphasizing the importance of understanding your audience and the value of different pricing tiers. They discuss how to build trust with customers through low, medium, and high ticket offers, and the psychological aspects of pricing that can influence consumer behavior. The conversation also highlights the necessity of market research and audience engagement to determine the right pricing for products and services. Tune in to discover: 

• How to evaluate your audience's desire for a product before creating it
• Why low ticket offers are an essential starting point for customers
• How to build trust with your audience and how trust impacts pricing
• The psychology of pricing and how it can influence consumer decisions.
• Why knowing your audience is an essential component of pricing 

What low-ticket offer would you create or have already created to build trust with your audience? Share your thoughts with us — we’d love to hear! DM us on Instagram @dayle_sheehan_designs & @jamiedfrancis! See you next time!

This episode is sponsored by our Ultimate Girls Trip! Be sure to go to www.proofitspossible.com for more info.

For More Information:
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Dayle:
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Jamie:
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Transcript

Dayle (00:30)
Welcome back. are so grateful that you're here. Today we're going to talk all about pricing and why pricing matters so much with our like services, product-based businesses, whatever you're selling, you have to price it right. And there's lots of like thoughts, controversy theories about pricing. And we're going to just kind of like go through our thoughts and there's really no right or wrong answer. Would you say Jay, like,

Jamie (00:33)
you

Yes.

No, I think every business is specific. Like, what works for one is not going to work for the other. It all depends on like what you're selling, who your audience is, how big is your audience.

Dayle (01:00)
Me too.

When it exactly

and I was just gonna say like when you get to a certain point in your business, you know, you are gonna increase like the one fashion stylist can charge $100,000 for her like yearly package. And the next one might be like, ⁓ my gosh, somebody just bought something, you know, a six month package for $1,000 from me. That's so awesome. And they're, they're both happy with their what they're making. And

Jamie (01:30)
We're good.

Mm-hmm.

Dayle (01:37)
It's in the eye of the beholder. depends who your ideal client is. It depends where you live. You know, it depends who you serve. the, the like age old is a low ticket offer better than a high ticket offer or vice versa. Do you need high, low or high medium and low ticket offers to capture everybody? What is the right path? So what are your thoughts?

Jamie (01:59)
Yes.

Well, I think you have to look at what you're selling. are you selling something that is a lower ticket item or are you selling something that's a higher ticket item? let's use personal training. Are you selling a whole package, a whole personal training package? Or are you selling one single workout plan on the internet? It's not even an in-person experience because they're two very different price points.

Dayle (02:16)
Right.

Jamie (02:25)
And I think that you need to also look, so it's like, what is it that you're selling? Is it higher? Is it low? Would people pay a lot of money or not pay a lot of money for that? If I was paying for like a full written out long-term exercise plan that had, you know, several different days, like a leg day, an arm day, a cardio day, I'm expecting to pay more than if I'm just like, hey, I need a quick like ab routine that I can buy off of a website that will just

Dayle (02:43)
Mm-hmm.

Jamie (02:55)
get me abs one, you one time or you buy the, you buy it one time and that's it. Like I would pay way less for that. So I think you need to know what it is that your product product is. Are you giving more value or less value? And is it intentionally more value or less value? Cause sometimes when you just want people to have an easy, yes, you can just do like a very specific, narrow product or service where people are like, yeah, they're, you know, my clients aren't, I haven't warmed up my audience enough to, to sell this huge,

Dayle (03:02)
Mm-hmm.

Jamie (03:24)
personal training package, but I have warmed them up enough to sell them a $20 item, a $20 ad package or whatever that looks like. I'm not in the personal training space, so I'm literally making shit up here. But like just as an example, I know myself, I'm not committed to like working out full time forever and always. So I'm probably never spending the high ticket price, but I would spend $20 in before summer to just have a nice stomach, you know.

Dayle (03:53)
Yeah,

exactly. Well, that or your you've done in the past, like a boot camp that you know is for one month and it's a quick hit. It's when you're wanting it and you're motivated and you're into it. But it isn't like a yearly package at a gym that costs you thirty dollars a month, whether you show up or not. Yeah, that because that's more your style, because you like being outside, you like working out for within with an intended goal. And like I always use Walmart as an example.

Jamie (03:58)
Uh-huh.

Absolutely.

Dayle (04:20)
So you have to almost get clear a little bit on, you want to be like Walmart, which Walmart's model is they sell everything as low cost as they possibly can. They're an affordable retailer, essentially. So if they sell a package of pens at Walmart, they will, they can sell them for less because they're hoping to sell millions of those, know, hundreds of thousands of those.

Jamie (04:44)
Mm-hmm.

Dayle (04:46)
Are you hoping to sell something because you have a huge audience to lots and lots and lots of people? Or are you hoping to sell one thing to one person for the hundred thousand? You know, like, and the thing is, is finding that one person is equally as hard as selling, finding a million people with $1 to spend, you know, like

Jamie (04:51)
of law.

Mm-hmm.

Totally. Yes,

I've seen this thing that's circulated like a lot over the last like decade and it's like how to make a million dollars and they've broken out like you can sell a $20 offer and however many times you'd have to sell that or you can sell a $50,000 offer and you'd only have to sell that 20 times. You know like different ways to come to the same end goal which was a million dollars and I think you can do that on a like much smaller scale.

Dayle (05:25)
Right.

Jamie (05:34)
It's very fascinating because it's like if you just needed a thousand dollars by the end of the week, how could you get there? Could you sell 50 people a $20 item? Probably. Most people are pretty loose with their $20, you know, they're not

Dayle (05:46)
Absolutely, exactly. And then for

you, you got to ask yourself, like, what's my, what am I an expert in? What could I make or provide or offer? Is it a webinar? Is it a course? Is it a, you know, one group training session? Or you know what I mean? Or like you can fit 25 people into a group training session in the park. So you'll do two days of it and do a spin class or yoga class or whatever.

Jamie (05:57)
We're done.

Mm-hmm.

him.

I also think you have to think about the time commitment it's taking you to produce the product or the service. if it's going to take you a couple of hours once or twice, so let's say it's like an online course and it's a small little online course, if it's going to take you a few hours to build it, but then once it's built or even a day to build it, once it's built, you can continue to sell it while that

Dayle (06:19)
Mm-hmm, of course.

Mm-hmm.

Jamie (06:41)
Your initial investment wasn't that big so you can sell it at a much lower price point to a lot more people because you don't feel like you've invested as much time into it and maybe that's like a backwards way of thinking but like that's how I would look at it if something

Dayle (06:47)
total.

Well, and I,

in that case, I want volume sales. want to sell it to more people in it to be an easy yes to more people. And the other thing I think is that I want to charge a price that makes people feel like, wow, I got a good return on that $20 or that $50. Like if I'm going to charge $500 for a two page PDF, you better just give me like the name.

Jamie (06:58)
Yeah, exactly!

I hope you liked

Dayle (07:25)
of how to print money. Like, you know what I mean? Because I, not that, what can I learn in two pages that's worth $500? Like, it needs to be more robust than that. And you do not want customers leaving you. And so when you're talking a low ticket offer, that it should be, in my opinion, a customer's first buy-in with you. And then once they buy into that and they're like, wow, that had great value and taught me

Jamie (07:33)
Mm-hmm.

Mm-hmm.

Dayle (07:54)
these four super important things about whatever. Like let's say it's about doing your own books. And like without that, I wouldn't be able to do my own books. So they really got me started. But they also have a medium sized offer, which is like maybe, you know, they had the $25 like quick ways to make your accounting easier in your business, do your own accounting. And then that was like a four page something, five page something.

Jamie (08:16)
Thank

Dayle (08:21)
$25, I felt happy with that exchange. You can do the next thing where your medium size offer, which is like maybe 150, 250, maybe it's 500. I don't know what business you're in, what you're an expert in, but it's a more robust version of that. It is something else that they might wanna learn, but it is a deeper dive into that topic area that the same customer might be interested in. So that's where you get your like,

medium tiered offer. And then that if somebody has given you $25 and then they've gone, you know what, I want the $200 offer as our thing as well. When it comes time for you to be like, listen, I'm doing a two day conference, where you come to a conference room, and it there's going to be 12 people there. And you literally learn how to do your own accounting or bookkeeping or whatever it is, or your business. And it is intensive.

and it's going to cost $2,500. If this person has been your $25 guru and has been your $250 guru, they are the most likely person you're going to pick as your $2,500 guru. So it's warming them up along the way to believing that you have value in every course or offering or service that you're providing. Don't you think? And I think that that's, I think people go straight to the $2,500 offer.

Jamie (09:32)
Yes.

Yeah, for sure. Yeah.

Dayle (09:48)
And they're like, why isn't anybody coming to my thing?

Jamie (09:51)
Well,

I also think if you do the math on it, kind of like that thing that I was saying that was circulating all the different ways to make a million dollars, people are like, well, it's easier to convince 50 people to spend the big money than it is to convince 10,000 people to spend the small money, when in actuality, I think it's the opposite. But it's a quicker, like, you know, less people feels like it can happen faster than more people buying.

Dayle (10:03)
Yes.

I do too. Yeah.

Yeah. Great.

Jamie (10:19)
when your offer is $20, people are way easier, way quicker to say yes, because it's just $20. They don't have to fully, fully trust you yet. They're like, it's $20, I wasted $20 on worse things, I can waste it on this. Even if it's the worst, but then you go and deliver something that's really great, then you've now sucked them into your orbit. Like you've got them as a fan.

Dayle (10:27)
Absolutely.

Mm-hmm.

Yes, paying attention,

yeah.

Jamie (10:43)
You've got them paying attention. You've got them looking for your reels. You've got them looking like, well, what else does she have that I might want to buy? Or what else does he have that I might want to buy? This happened. The people, the gurus that I consider in my life, they have followed this exactly. And it has worked on me every single time. And I don't even, I don't even feel like I've been bamboozled by them. I am a willing participant. And when they give me good service or a good, whatever it is that I've bought from them.

Dayle (10:49)
Mm-hmm.

Absolutely.

No! Awesome.

product or net.

Jamie (11:10)
I want to spend more money because I'm like, wow, that was great value. I want to go to the next level. I want to buy something that I know is going to be great value again and a little bit more robust. And then when they give me the big offer, I'm like, well, yeah, of course I already believe in them. I already know what they say is going to be really good for my business or really good for my whatever it is that you're buying. So it's how you build trust with your hunt.

Dayle (11:31)
And there are people, yes, and

there are people that will only ever buy, get the freebie item, the $25 item, and they'll stop there because that's their budget. That's where their like financial thermometer stops them. They can't even do 250 because that's just not something they would spend. Or they might get to 250 and then stop there and not go to the $2,500 thing. And we all have

Jamie (11:55)
Of course.

Dayle (11:57)
our limits for what we feel like we can spend on certain things in this life, like whether it's a shirt or whatever. But you know, you'll go into a store and you'll be like, the shirts 20 bucks. Yeah, I'll take it. But if it's if a t-shirts 250, you're like, I don't really need this. That's a lot. That's totally not what I was expecting.

Jamie (12:00)
Mm-hmm.

That being said, there is going to be somebody that walks in that door and is like, my gosh, this brand is my favorite brand. I have all of their t-shirts. I love the way they fit. This is the best for me. They wash so nicely. I bought them before at a cheaper level and I'm ready to buy the like more expensive hoodie, let's say, or the more expensive sweater, the cashmere sweater. And it's a higher price point that you've already sold them on your product. You got sold on a cheaper product and now they're willing to do a bigger investment in the next level of your product.

Dayle (12:29)
Yes, exactly.

Yes.

Well, and and companies groom people to know what they're all about. So in my opinion, like if I walk into Walmart and I find a $250 t shirt, I'm freaking shocked because I've never known them to have something like that. So if you do a $10 offer, a $25 offer and a $50 offer, and then all of a sudden your next offering is $5,000. It's too big of a jump. It's it's a scary, shocking jump. You have to have a

Jamie (13:09)
Thank you.

or worse,

Dayle (13:12)
a lab.

Jamie (13:12)
or worse, your next offer is $50,000, you know, yeah.

Dayle (13:15)
Yeah, exactly. Exactly.

So it's like, you do have to step the people up as they get more and more comfortable with their financial spend with you in order to sell.

Jamie (13:25)
say like

let's just use the t-shirt example what is too expensive for one like i i might be shopping in that store and be like yeah i can't spend that on a t-shirt i have no history with that brand i don't know that brand i have my my financial thermometer is not set to spend that kind of money on a t-shirt the next person is going to come in or could come in and have history with that brand want to buy the t-shirt buy the t-shirt

Dayle (13:30)
Yes.

Jamie (13:50)
When someone doesn't buy, doesn't mean because your t-shirt is bad. It doesn't mean your service is bad. It doesn't mean your product is bad. It means that... Yeah.

Dayle (13:54)
No.

or too much money even. It's just

that the right customer did not walk through the door.

Jamie (14:01)
That's exactly what it means. Or you haven't built a big enough relationship or a good enough relationship with that first customer. So that's why I fully believe that there needs to be like an array of services so that a customer that's brand new to you, like, so for instance, you just started following somebody. You love what you've seen so far, but you're pretty much brand new to this person. They're not going to be a quick sell right off the hop in your top tier offer. You might have

Dayle (14:12)
Yeah.

Exactly.

Jamie (14:30)
million followers that have been following you for 10 years that are an easy sell, but you still have to appeal to the people that just started following you today. They just learned about your product today. They just learned about your service today. You have to allow them to go through the steps. So you do have to have the freebie. You do have to have the low ticket offer. You do have the medium offer. And then you can still have that high ticket offer for the people that already know, like, and trust you.

Dayle (14:38)
Sorry.

Absolutely. ⁓

Exactly. Well, and this is the other thing. So if I then take the Walmart $250 t-shirt and the sticker shock of that, because I don't know that brand to be that kind of price point, it confuses me. But if I know that a brand is higher end, so let's say I walk into Louis Vuitton and I see the t-shirt because I've already marked in my mind this is high end. Like just as a brand, they've branded so deeply into us that they are luxury, they're high end.

Jamie (15:22)
Yes.

Dayle (15:25)
They are expensive. And so we don't walk in that store thinking I'm probably finding myself two new tank tops for 15 bucks and pair of sweats with a matching sweatsuit for 30 and all the things we're expecting from Walmart. We're expecting something different. So if we find a men's t-shirt for our husband or whatever ourselves in Louis Vuitton for $250, we'd be like, this isn't bad.

This is great because truthfully, it's the least expensive thing in the entire store. So your threshold and I don't know if I was if I was talking to you about this or I told you about this, but sometimes like a menu will do this and it's a sales tactic and it's it will do a loss leader is what they call it on a. Yeah, I might have, but if you guys didn't catch that podcast, I'll just quickly tell you about it again. And basically what it is is.

Jamie (15:55)
Mm-hmm.

Yes.

I think you talked about it on one of our last podcasts.

Dayle (16:17)
They put one steak on the high end steak menu that or item that is double the price of every other steak. And they don't just put it on the on the menu. They put it in a big box right at the top so that when you scroll down past appetizers or salads, it's the first and most noticeable steak to order. And they'll put it at like hundred ninety nine dollars where you're kind of comfortable spending like sixty to eighty on a steak.

You know, that's the going right. So what you do is you literally are like, oh no, this place, the stakes start at $200. Oh my God. So you scan the menu and you're like, oh God, thank God there's a steak for 110. Well, guess what? You were going in hoping to get a steak for $60. Now you're grateful for buying a steak for $110 because it's just not $199. So.

Jamie (16:45)
We're ready.

Thank you.

Dayle (17:12)
There's all kinds of psychology around selling and giving setting expectations of your customer or within your customer. And you get to kind of like manipulate that. And that's the importance of pricing.

something is very, very strategic. It is very, very. And also, what's your brand?

ideals like if my brand ideals are that I'm accessible to everybody. want whether you're a mom with a new side hustle and you don't want to have to ask for money or come up with money or take money away from kids activities and sports and whatever. I'm going to need to make my price points something that are no brainers. They're easy yeses for that mom or that new entrepreneur or that person that doesn't have a huge budget.

Jamie (17:59)
100%, you have to know your audience.

Dayle (18:01)
You have to know your audience and without knowing who your audience is. Like the opposite can be true. So someone can give you a gift with purchase when you buy something at like a department store in the makeup section. It can be $150 eye cream, but because you got it as a gift with purchase with something else, you might throw that in the garbage because you literally priced it too low. Like they gave it for free. You didn't do your research on it. You just got given it. it

Jamie (18:22)
Mm-hmm.

Hmm.

Dayle (18:29)
to you it actually kind of has no value. So you have to be very, very careful on who's my audience, who am I trying to, you know, and like things to take into consideration. It's like, if, if times are really high, you can put your product slightly up. If, if everybody's worrying about money because the like economy is going in a downward motion, people are starting to tighten up on what they spend. So they're going to look at everything from that lens. And that lens is

Jamie (18:32)
Yeah.

Absolutely.

Dayle (18:57)
Maybe you're like the thing that ignites you to say, you know what I need? I need a 10 or $20 ebook or zoom call option where people just get to ask me questions instead of, you know, for 15 minutes and it's in a group setting or whatever. Whatever you're like. And if you're going with trading time for money and you're going to do a low ticket offer, try doing it in a group setting. Cause then if everybody pays you $20, but you get 40 people,

Jamie (19:11)
Thank you.

Dayle (19:27)
and they all get to ask you their questions on a Zoom call about, you know, what's the best thing to eat while you're trying to lose weight or whatever. You can cover more people at the same time. You're doing a volume sale and only trading that same half an hour, that same hour, right? So it's just knowing how you want to spend your time. It's knowing who your audience is.

Jamie (19:40)
Oh for sure. Yes. 100%. Yes.

your audience. It's how warm

is your audience how much like no trust like no trust. No like trust. I'm like I know I'm saying that wrong, but I don't know. Yeah, it's about whether your audience is warm. It's about whether they trust you already. It's about whether you've offered something similar if it's about whether they've already invested in you. It's about whether your product or service is worth the cost. Like

Dayle (19:53)
Yeah.

know, like and trust you've built. You are.

Exactly.

Jamie (20:15)
Are you giving them enough value to charge $500 or $1,000 or $50,000? Have you given them enough value to warrant that?

Dayle (20:24)
For sure. honestly, this is your guys' homework for today. Go away from this call or this episode and write down quickly, what are the like three tiers of something you're an expert in that you could create three different offers at three different price points? And just sit with it. Just like look at it again tomorrow and then look at it again the day after and see, does it still feel like the right price? And then whatever that might be,

Jamie (20:48)
Thank you.

Dayle (20:53)
really think about like how much work is going to go into this for me because if the you know $10 course is going to take you three months to write it's probably not $10. It needs to be more money than that because it took way too much of your time.

Jamie (21:08)
Also, here's a quick tip that somebody once gave me and I was like, brilliant. If you are wanting to do something like build a course or do something you haven't yet created, ask your audience. Ask your audience or start selling it and create it after. So if one person buys, you know you might've priced it too high or you haven't built enough trust or you know, like don't.

Dayle (21:20)
Yes.

Yes.

Jamie (21:33)
Don't spend six months of your life building something, release it out to your people and nobody buys it. You know, do a little market research before you actually build the thing, resell it, see if people are interested in it. If it flies off the shelf, maybe you need to increase the price. If it doesn't sell, maybe you need to increase the price.

Dayle (21:40)
Yes. Sell it first. Yeah.

Mm-hmm.

Exactly. Well, and I'm putting together a little

thing right now that helps you guys figure out how many times is like a keyword searched and things like that. So it's like a great resource that you can like, use to figure out some of these questions that you might have. Okay, that's so exciting. I can't wait till it's ready.

Jamie (22:07)
Okay, that's so exciting.

Okay, we want to hear all about your three offers, your low, medium, and high ticket offers and whatever that's like. We're also open to giving you feedback if you want to send us a DM or leave us a comment. We're happy to chat. So can't wait to hear all about it. Until next time, guys.

Dayle (22:14)
Mm-hmm.

Yes.

Bye bye.