In my group coaching program, part of what I help students do is come up with a core offering. Once they have their one core offering, then they are encouraged to create offerings at different price points.
There are several reasons why you want to consider creating products and services at different price points, but first, I want to clarify what these different price points are.
What do different price points look like?
One of the questions new business owners ask me all the time is what happens if someone can’t afford their offering but still needs help. There are two answers to this.
The first is that they just may not be your ideal client. The second, is they can still get the help they need by trying an offering at a lower price point. Here is a basic breakdown of different price points in a business:
- Low price points. In my business, this is my book.
- Low-mid price point. This could be an on-demand course and (in my opinion) can go up to $1,000.
- Mid-high price point. This could be something like a group coaching program. Usually above $1,000.
- High price point. This is the most expensive and it’s usually the offering that either costs the most money or takes up the most of your time. In my case, it’s private coaching which is priced in the thousands.
Why You Need Different Price Points
There are several reasons why you want to create offerings at different price points. Here are three.
You can still help people.
The thing to note is that you have different levels for different wallets. For example, someone may not be ready for my group coaching experience, BUT they might be ready for a small on-demand course on blogging.
They may not be ready in two ways. First, they don’t have a foundation yet. Second, because they are just getting started they also don’t have the budget.
In my case, I have smaller on-demand classes that express one specific issue – like starting a blog or a freelance writing business. Once students have implemented these on their own for a while, then they may be ready for group coaching.
My group coaching also serves as the starting point before private coaching, which covers more mindset issues.
You can scale.
Creating offerings at different price points helps you scale. For example, my on-demand classes don’t require any of my time, and I’m still getting paid. My group coaching program is also a one-to-many model. Since it’s at a mid-high price point, I still make a good amount of money, but it’s less of my time being put into it.
You have multiple streams of income.
The final reason why you want to create offerings at different price points is it provides you with multiple streams of income. If one source isn’t providing, another one picks up the slack. Additionally, you meet clients and customers at different parts of their journey which leads to more business revenue for you.
Before going crazy, just note that it takes time to build offerings at multiple price points. It took me years to get the sales funnel for my coaching business totally figured out. However, once you got it, it makes running a business much easier.