Teaching Mastery Academy for Digital Course Creators

Elevate Your Brand with Exclusive Course Pricing Strategies

• Francesca Hudson: Teaching Mastery Academy • Season 1 • Episode 17

Share episode

Unlock the secrets of premium pricing for your courses and elevate your brand with the strategies we unfold in this episode.

Join Francesca of Teaching Mastery Academy as we uncover the psychological allure behind high-end offerings. 

Why do individuals eagerly invest more in luxury brands like Tesla and Chanel? It’s not just about the number on the price tag—it's the story behind it. 

Learn how to harness emotional triggers that instill confidence and excitement in potential students, using tools like social proof and expert positioning to ensure your audience sees your course as a transformative must-have experience.

Grasp the art of urgency and scarcity to boost course demand, taking cues from the limited availability magic of the Birkin bag and Tesla vehicles. 

We’ll guide you through practical strategies to position your course as a premium experience, using iconic brands like Chanel and Apple as benchmarks for luxury and innovation. 

From crafting a compelling transformation promise to designing an unparalleled learning journey, we reveal how to create an educational product that not only captivates but converts. 

Grab your notebook and a hot drink, and get ready to transform the way you see and price your courses.

Think of your course (or your course idea,) like a luxury car. People won’t pay top dollar unless it’s high quality, delivers an incredible experience, and meets their needs perfectly. Teaching Mastery Academy teaches course creators like you how to ‘build’ that luxury-level course—one that students trust, complete, and rave about, justifying premium pricing every time. Ready to take your expertise and ensure your digital course stands out from the crowd? Premium courses (and premium returns) start with the core teaching fundamentals that all the best course creators instinctively do, but now I'm showing you how! Join the VIP waitlist for Teaching Mastery Academy now! Click here to learn more.

Speaker 1:

Hey there and welcome back to Teaching Mastery Academy. I'm your host, francesca, and today we are diving into one of the most fascinating and powerful aspects of selling premium courses. It is the psychology of premium pricing. I am so fascinated by psychology and how we think and how our thoughts can impact our actions and all that type of thing. So I wanted to really look at this from the point of view of premium pricing and I want to ask you a question have you ever wondered why some people are willing to pay $10 for a coffee at a boutique cafe, while others balk at spending more than $3 at a chain, or why luxury brands like Tesla and Chanel thrive even during the tough economic times? It's not just about the product itself. It's about the psychology behind how people perceive value, exclusivity and status. And here's something I want you to think about as we dig into today's episode.

Speaker 1:

Pricing isn't just a number you slap on your sales page. It's a story. The story your pricing tells about your course is what ultimately determines how your audience feels about it, whether they see it as a game-changing investment, for example, or just another run-of-the-mill offer. And here's the exciting part as course creators, we're in a unique position to tap into these same principles that luxury brands and high-end services use to attract their ideal customers. You have the power to create a course that doesn't just teach, it transforms. A course that feels like a premium experience from the moment someone lands on your sales page. Today, we're going to pull back the curtain on what drives people to pay top dollar for certain products, services and yes courses. By the end of this episode, you'll understand the emotional triggers that make people excited and confident about investing in premium offers. Also how things like exclusivity, scarcity and status play into buying decisions and, most importantly, how to apply these psychological insights into your own course pricing so you can position your offer as a must-have experience. This isn't about trickery or manipulation. We definitely do not go there in Teaching Mastery Academy. It's about truly understanding what motivates your audience and how to create something so valuable that your audience are eager to invest in it. So whether you've been hesitant to raise your prices or unsure of how to position your course as premium, or just curious as to what separates a $97 course from a $997 one, then this is the episode for you. Grab a notebook, a cup of coffee or tea, if that's your thing, and let's explore the fascinating world of premium pricing. I love saying those two words premium pricing because once you understand this, it'll change not just how you price your courses, but how you see your entire business.

Speaker 1:

So let's get started. Let's start with a truth bomb. People don't buy premium products or courses because they need them. They buy them because of how those purchases make them feel. It really is about understanding who your audience are inside and out and how to talk to that audience, and this is the heart of premium pricing.

Speaker 1:

It's not just about the features and the benefits or even the outcomes. It's about taping into the psychological and the emotional triggers that make your audience feel excited, confident or even proud to invest in something that they see as high value. Some people invest in cars, some people invest in clothing, some people invest in handbags. You know, we're all different. We all see value in different things a lot of the time, material things, but education is one of those pillars of our lives. We are investing in ourselves. Investing in learning, investing in what's going to get us ahead or what is going to encourage us to pick up a hobby or to teach us a new skill, is something that is lifelong. It is a lifelong investment.

Speaker 1:

So let's break down this idea further, with a deeper dive into the three most powerful emotional triggers behind premium purchases and how you can apply them to your premium course strategy. So the first emotional trigger I want to look at is confidence in the outcome. So when someone is willing to pay a premium price, they're not just buying your course, they're buying into the certainty that your course will solve their problem or fulfill their desire. This isn't just about providing information, it's about providing reassurance. Think of it this way if you're shopping for a parachute, are you going to choose the cheapest option? Of course not. Think of it this way if you're shopping for a parachute, are you going to choose the cheapest option? Of course not. You're going to choose the one that gives you the absolute highest level of confidence in your safety. Well, the same principle applies to premium courses.

Speaker 1:

Your audience wants to feel certain that enrolling in your course is a guaranteed step towards the transformation that they're seeking. So how do we build confidence in your outcome? Well, we start with a crystal clear transformation promise. We make it undeniably clear what students will achieve by the end of your course. We use specific, measurable outcomes like by the end of this program you'll have a 90-day content strategy that doubles your engagement without spending more than two hours a week something like that. We also need to have expert positioning, so showcase your credibility, your experience and past results, and this could be through testimonials, your case studies or even sharing your story of how you've achieved the transformation that you're teaching. And then think about social proof. So testimonials are gold for building confidence. Highlight stories of students who've seen real success with your course, especially ones that feel relatable to your audience. Now, if you don't have any social proof yet because your course is relatively new and you're still building up that awareness online, then I would highly recommend seeing in your community, in your network, who is out there that could go through your course to give you some really good, solid feedback, because within that really good, solid feedback will come a testimonial, and then you can use that testimonial to be the foundation that you can start to build on testimonials from there.

Speaker 1:

So when we're looking at this first emotional trigger behind premium purchases, which is confidence in the outcome, I'll give you a real world example. Think about the brand Peloton, the bike company Peloton. Now, peloton doesn't just sell stationary bikes. If you thought it was just about stationary bikes. You are completely wrong. Instead, peloton sells the confidence of having world-class workouts led by motivational instructors combined with a vibrant community that keeps you accountable. Their messaging makes you feel like this bike isn't just a piece of exercise equipment. It's your gateway to better health, increased energy and a support system cheering you on. So how do you make your course the Peloton version of your niche? How do we turn your course into the premium idea, the transformational promise that you want your audience to embody Now?

Speaker 1:

The second emotional trigger is desire for exclusivity. Here's the thing People love feeling special. They love knowing they're getting access to something not everyone can have. That's why exclusivity is such a powerful emotional trigger for premium pricing. When a course feels exclusive whether it's because of limited seats, high-end bonuses or private access to the creator it instantly feels more valuable. And we need to look at how to tap into this exclusivity, and I've got three ways you can do this with your premium course. The first way is limited availability. Think about maybe capping the number of students in your course or your premium tier, so, for example, only 20 spots available for VIP coaching. Because scarcity makes people act faster and adds to the perceived value of what you're offering. Or you could also look at maybe starting with a discounted price for the first 20 buyers and then that price goes up. Or maybe think about a discounted price for the first 20 students that sign up and then the next 20 gets a slightly higher price, and so on and so on until you build all the way up to your full price offer. So think about adding a version of limited to your course offering. The second way is to look at exclusive bonuses. So offer something unique to your premium buyers, like an additional live coaching session or a personalized review of their work or even access to a private mastermind group. Think about something that's really going to add that exclusivity to your offer.

Speaker 1:

And finally, think about early access or insider content. I love this one. We do this inside TMA all the time. Position your course as by invitation only or offer early enrollment for certain audiences, so you're making your students and you're making your audience feel like they're part of a really elite group. Your offering is not open to the general public. Come through the gates of your world, of your brand, before you even get to the front of the queue, to be able to see what your offer is, and I'll give you an example from the real world. So think about Tesla. Okay, the car company and Tesla's early launches are a masterclass in exclusivity. So when the Tesla Model S first came out, owning one wasn't just about having an electric car, but it was about being part of this amazingly exclusive group of early adopters who were way ahead of the curve. The electric car curve, and this sense of being on the cutting edge created a real buzz that made Tesla not just a car company but a status symbol.

Speaker 1:

Imagine if you could turn your course, your brand, into a status symbol. What would that look like? What would that look like to your audience, to your niche? This is how we want to view your courses through these premium content lenses. Now the third trigger, the third emotional trigger, is the emotional boost of status. Let's talk about status for a moment, because premium purchases are often less about the product itself and more about what the product says about the person who buys it. Oh, this is so true, people that drive a certain car you want to say, oh, they're such and such a type of person. Or if you dress in a certain way, a certain style, a classic preppy style or a grungy rock style. How we come across in our purchases and the way that we express ourselves in the world definitely says more about us than the product, and people pay attention for high ticket items because it elevates their identity, whether that's as a professional or a leader or even just someone who values the best.

Speaker 1:

So think about your course.

Speaker 1:

What status boost does it offer your students? Will it help them become a recognized expert in their field? Will it position them as a leader in their niche or give them a personal or professional edge that they can proudly showcase? So how do we position your course for a status boost? We can frame it as an achievement. So talk about how completing your course is a milestone worth celebrating. So this could be in the form of a certificate that they can put in their portfolio, or they can put on a frame on their wall, or maybe a portfolio piece or a major skill that students can proudly showcase. Also, highlight the prestige of working with you. If you've got a reputation in your niche. Emphasize that access to your course means access to you. Position it as a chance to learn directly from someone who's been there, done that and and can help them. Help students fast track their success. For example, if your course is about public speaking, talk about how your students will confidently deliver keynote speeches in front of hundreds. Or if it's a business course, highlight how they'll be recognized as the go-to expert in their industry.

Speaker 1:

Let me give you a real world example again. So think about luxury brands like Chanel and Gucci. They don't just sell clothes, they sell status. A Chanel bag isn't just a purse oh, no, no, no, no. It's a symbol of sophistication, of success and exclusivity. And the same principle applies to your course. It's not just about what students learn, it's about who they become as a result. So here's the magic these emotional triggers don't just work in isolation, they amplify each other. When you position your premium course with a clear outcome confidence, add a layer of exclusivity and tie it to a status boost. Add a layer of exclusivity and tie it to a status boost, you create an offer that feels irresistible. Okay, so let's put them all together. I want you to imagine offering a limited enrollment course that promises a specific, life-changing transformation in other words, giving your students confidence and includes, maybe, vip coaching sessions directly with you. That's the exclusivity element added to it. Then you highlight how your past students have gone on to achieve major milestones and gain recognition in their industries, which is giving you a bit of status, and this combination creates a powerful emotional pull that gets people excited to invest not just in your course, but in the version of themselves they'll become by completing it. When you understand the emotional triggers that drive premium pricing, you unlock the key to creating courses that not only sell but resonate on a deeper level. Remember, people aren't just buying information, they're buying feelings, they're buying confidence. They're buying exclusivity and the status that comes with transformation.

Speaker 1:

Let's look how we can use scarcity and urgency to further enhance your premium course strategy. So why are we talking about scarcity? Why does it work? Why is it such a powerful element to when we're talking about the psychology behind premium pricing? Well, scarcity is the idea that when something is limited in availability, it's perceived value skyrockets because people inherently want what they can't easily have. Right, it's human nature.

Speaker 1:

And in the context of premium pricing, scarcity might look like this. It could look like limited spots in your course, or a short enrollment window, or a one-time bonus that disappears after a launch. So scarcity creates FOMO, fear of missing out, which drives buyers to act quickly instead of hesitating. Think about the Birkin bag by Hermes. Now, the waiting list for a Birkin bag can be years long and that scarcity only adds to its allure. So we want to add that element of scarcity to your course. How do we do it? What does it look like for your course?

Speaker 1:

Think about that. Do you offer limited spots in your course or do you offer a short enrolment window? I know, when we open the doors to Teaching Mastery Academy, we only offer a 48-hour window, two days because we know that our community are waiting at the doors. For when the Teaching Mastery Academy doors open, they don't hesitate. They know exactly when the doors open and they are there. They are at the front of the line. So think about a shortened enrollment window, or maybe a one-time bonus that disappears after launch. We do this all the time as well. I mix up the bonuses. Some rounds of Teaching Mastery Academy will offer one bonus and then another round of Teaching Mastery Academy will offer other bonuses. So we keep it fresh and we keep it exclusive.

Speaker 1:

So think about how you can add scarcity to your offering. Now, remember that when you are adding urgency, it's about timing. You want to create a sense that the action needs to be taken now to avoid missing out. So, while scarcity focuses on limited quantity, urgency focuses on limited time. And here's how you can use urgency to drive premium course sales. You can offer early bid discounts with a specific deadline, or you could run a time-sensitive bonus for those who enroll within the first 24 hours, or you could use countdown timers on your sales page to highlight when enrollment closes. These are all really powerful ways that you can add urgency, and if you combine scarcity and urgency together, you will achieve maximum impact. So, for example, you could say only 10 spots left. That's that scarcity element, and enrollment closes in 48 hours. That's the urgency. So when you put those two together, it is potent, my friends. That's the urgency. So when you put those two together, it is potent, my friends.

Speaker 1:

Now to really understand premium pricing, let's look at some of the most successful premium brands outside of the course world. Let's give you a little bit of a broad overview of how other really well-known brands use premium pricing to their advantage. So the first one is obviously Tesla. We talked about this briefly and Tesla, as we know, redefined the electrical vehicle market by positioning its cars as premium, eco-friendly status symbols. They didn't market to everyone. They focused on a specific high-income audience who wanted cutting-edge technology and a sleek, exclusive design. So what can we learn from this? What is the takeaway from Tesla? Well, premium doesn't mean catering to the masses. We need to focus on a specific audience who's willing to pay for the unique value you bring. So never, ever, worry or fear that by refining and niching down on your offer, that you're cutting out a whole lot of possible sales. You're actually going to increase the likelihood of people investing in you if you focus on a very super hyper-specific niche, an audience who's willing to pay for that unique value.

Speaker 1:

Let's look at Chanel. We talked about Chanel briefly too. Chanel doesn't just sell handbags. They sell a legacy, a story and a symbol of luxury Going to Paris and stepping foot in the Chanel store in Paris and just having that overall experience of being in Chanel Paris and just having that overall experience of being in Chanel, being in Paris and really enveloping, soaking up that French vine. Because Chanel don't discount. Oh no, they never try to compete on price. Instead, they emphasize timeless quality and exclusivity. So what can we learn from this? Well, when you position your course as premium, I would highly recommend avoiding competing on price. You don't want to discount. You don't want to run sales. Instead, you want to highlight the unique transformation, the quality and the experience that your course delivers. Why it's an investment.

Speaker 1:

Let's think about a brand like Apple, because Apple thrives on simplicity and innovation and branding, and their products are easy to use, they're beautifully designed and my son absolutely loves their packaging. He's he's at nine and he's obsessed with the beautiful sort of sleek white boxes and how everything is, I just feel, so super tech. And it's the way that Apple markets themselves. Is they market themselves as essential tools for creative and professional success. I remember growing up, my dad had a graphic design company and he was Apple all the way. All of his computers were Apple and he said it was because they were the best for design, for creative design. So Apple really has identified with that niche in the market. So what can we learn? Well, streamline your messaging and design. So Apple really has identified with that niche in the market. So what can we learn? Well, streamline your messaging and design.

Speaker 1:

A premium course isn't about overwhelming your audience with content. It's about delivering a clear, seamless and impactful experience. So how does your Apple branding, your Apple box, look like for your niche? Your course? What type of design? What type of feel experience are your potential students having when they visit your sales page? Think about that. Think about how easy is it for people to navigate around your sales page? This is how we really want to establish ourselves as premium. So, now that we've covered the psychology, let's talk about some practical strategies to position your course as a beautiful premium offer we want to create, obviously so.

Speaker 1:

Step one is to create a high value transformational promise. The transformation your course promises needs to feel worth the investment. So focus on solving a high stakes problem or delivering a life-changing outcome, for example. So, for example. So, for example, instead of learn Instagram marketing, you could say something like create an Instagram strategy that generates $10,000 a month in sales. Really super specific, focusing on a high stakes problem or delivering a life-changing outcome. Get some really specific detail in your transformation promise.

Speaker 1:

The second thing is to design an exceptional experience. Remember that premium courses aren't just about the content, they're about the experience. So you want to be using professional branding and high quality videos and your iPhone can do high quality videos and then you use something like Canva to add a little logo on the bottom or, you know, to really sort of give them a polished edge. Same with professional branding. Canva, obviously, is a great free resource, or if you've got a little bit more in the budget, then maybe look at getting a VA, a virtual assistant, to help you. Virtual assistants don't have to be expensive. I use a place in the Philippines called onlinejobsph and they are amazing. I have had so many incredible virtual assistants from there over the years helping me with various brands and various products and, you know, for as little as $4 or $5 an hour, they can put together some really polished content for you. They can give your sales page a makeover. It is such a really worthwhile investment. If you are looking at getting some additional help, think about offering personalized support like group coaching or Q&A sessions, and also think about surprise bonuses to delight your students, and this is something that we do at Teaching Mastery Academy all the time. I love just popping in an extra little bonus there, and I haven't even advertised it. It's just something that people that have purchased Teaching Mastery Academy they get, because I create an environment for my students where they can expect the best and they get the best.

Speaker 1:

Now the third thing you can do is leverage testimonials and case studies, so social proof is critical to premium pricing. It really is, because it's the elephant in the room. We can't avoid not having testimonials if you're starting out. We have to think about ways that you can get some on your sales page, because you really want to be highlighting success stories before and after transformations, and testimonials that show the real impact of your course on your students and on your community. And testimonials that show the real impact of your course on your students and on your community. Maybe some pro bono work that you could offer until you start to get those testimonials to come in. Just think about ways you can get those testimonials if you're new, if you're starting out.

Speaker 1:

And finally, step four is to create some premium tiers. And when I say that, think about offer multiple pricing tiers to appeal to different levels of buyers in your niche, in your community. So, for example, you can have three pricing pairs for your course. The standard tier is a self-paced course for $997. The premium tier could include group coaching for $2,000. Or the VIP tier could be one-on-one coaching for $3,000. So think about ways that you can have multiple pricing tiers for your course, for your offer, and obviously different niches will have different ways of doing this and your particular course or expertise might lend itself more to the VIP tier, where you have the one-on-one coaching or the self-paced course. The standard standard tier for 997 might be better for your audience. You will know best as to what they'll lean into, but by having those options there it really does mean that the premium pricing psychology can appeal to your audience overall.

Speaker 1:

Finally, I want to address the mindset shifts that you need to confidently charge premium prices for your course, and I've got three mindset shifts and you might be one or you might be all of them, but these are things that are in our subconscious that we really need to start addressing. Bring it up to the surface, bring it up to our conscious awareness and let it go. And the first one was we want to believe in your value. If you don't believe in your course and you don't believe that your course is worth the price, your audience won't either. I want you to remind yourself of the transformation that you're delivering and the expertise that you bring to the table. I want you to imagine all the lives that you are going to change as a result of your students taking your course. What is the impact that it will have on the world. What is that ripple effect that will happen from people taking your course and then going out to help others in the community?

Speaker 1:

Really believe in the value of the course that you're offering. You have to believe in it. You have to believe that your course is worth the price, because if you don't believe that your course is worth the price, then no one else will. It comes out in our subconscious, it ekes out. So believe in your value. Okay, that's the first mindset shift.

Speaker 1:

You need the second one stop competing on price. You're not a bargain brand and your course isn't a commodity. Let's keep you focusing on the value, not the price tag. And I know that it's so tempting to have a race to the bottom almost with prices. Look at what your competitors are doing and then undercut them, but with a premium pricing strategy, we leave that completely alone. We don't even look at that, because it's not a race to the bottom, it's not a. You're not a bargain brand and, funnily enough, the more that you position yourself as bargain, the harder your clients are. It attracts a segment of the market where people don't appreciate the quality that they're getting and it's almost like you have to over deliver to win their approval. So, in order to elevate your course to the premium pricing level, remember that you do not need to compete on price. You are not a bargain brand and your course is not a commodity. Okay, and the third mindset shift that we need to address is that we need to embrace our premium buyers. Remember that premium buyers want the best and they're willing to pay for it, but that means they appreciate the best because they know what the value of it is. So your job is to show your students why your course is the solution that they've been searching for, why it is the premium answer, why they should turn left on the plane rather than right, why they should step into your first class premium course world. Because they will appreciate this, my friend, and they will thank you for it when they get the transformation that you have got waiting for them. All right, let's recap.

Speaker 1:

So, premium we talked about premium pricing and how it's rooted in psychology. We've looked at the confidence, the exclusivity and that status. Those three things confidence, exclusivity and status are key drivers with premium pricing psychology. Then we looked at scarcity and urgency and how, when using these two together, can be potent for creating FOMO that motivates your buyers to act for creating FOMO that motivates your buyers to act. We have looked at some of the key lessons from premium brands like Tesla, chanel and Apple to show us that quality, experience and branding really matter to premium priced courses. Then we looked at how to position your course as premium by focusing on transformation, by designing an exceptional experience and leveraging social proof. And then, most importantly, we look to have a belief in the value you bring in your own worth.

Speaker 1:

And we've just scratched the surface today on the psychology of premium pricing, and we cover this in so much more. We go so much deeper in the psychology of premium pricing, the psychology of teaching in Teaching Mastery Academy. So if you really don't want to take your course to the next level, you don't really want to look at how to turn your course into a premium offering, then join the waitlist for Teaching Mastery Academy so that you are the first to be notified when doors open. Next you go onto our VIP list. You can head to beclosetochyschoolteachercom. Forward. Slash tma, that's t for teaching, m for mastery, a for academy, to save your spot. So thanks for hanging out with me today. Remember, keep creating, keep serving and remember you've got this, my friends. Bye for now.

People on this episode

Head Shot

Francesca Hudson

Host