Price = Brand

Price = Brand

Christopher Murphy · 21 June, 2020

Your price signals your brand, just as context does.

Andrew Foster, Autonomous Ideas, sent me the following as a WhatsApp message after we'd discussed the pricing for my Accountability Coaching:

Component costs of an iMac are about 1/3rd of the total selling cost. The 2/3 uplift is brand, beauty and certainty of after sales support. You don’t want to be a cheap or a commodity, there's too much competition (and you're not a commodity, you have far too much value to offer, you are changing lives).

I had originally priced the Accountability Coaching for early adopters at £500. Foster rightly pointed out that I have 30 years of experience and I share that experience with the individuals I'm coaching.

Foster continued: “I know you are a naturally modest man but your client should be feeling: ‘Fuck me, I’m being coached by Chris Murphy – Chris Fucking Murphy! – £200 a session is a bargain!’”

In light of this, we discussed revised pricing, which we felt should be in the region of £750. (This might still be too low. I'm wrestling with it.) ¹

Payment Plans

Opening up access to as many people as possible is important to me, so I'm actively exploring pricing that includes monthly payment plans.

You don't have to be Apple – or a $1,500,000,000,000 company – to offer your customers to spread the cost of their purchase price. One thing you might want to consider, however, is the spread of risk.

Apple offers financing – technically Barclays (in the UK) offers the financing – for 0% (below). A company the size of Apple or Barclays can absorb a number of credit defaults in a way that your company likely cannot.

If you adopt a payment plan approach, you might want to consider an additional fee for financing:

  1. This incentivises up-front payment; and
  2. It helps as a de-risking strategy.

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Notes

¹ The upfront payment for this is £700. This is for a 6-8 week engagement, which will – I have no doubt – pay for itself many times over.

I also factored in how much I currently save on no longer buying alcohol or, thanks to the pandemic, cigarettes. I'm easily saving hundreds of pounds every month.

When people tell me they think non-university education is expensive, as if it should be given away entirely for free, I ask them: What do you choose to spend your money on? Life is about choices, you can choose alcohol and cigarettes or something else. The choice is yours.

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