What’s the difference between
driving a Ford Focus and a Mustang Shelby GT? Depending on whom you ask, you’ll
get a variety of answers. They both have four tires and a chassis, both use
gas, and they’re both designed to get you where you need to go.
You might say one is a car, while
the other is an automobile. One is serviceable, and the other is inspiring. One
is a set of wheels; the other is a throaty, road-hugging, gravity-inducing
Experience.
If driving a muscle car – or a
sportscar, or a luxury sedan – is so great, why doesn’t everyone do it? What’s
the barrier to such pure, juicy, thrill-injected driving joy?
Ah… Price.
It’s the price that sets them apart.
And because one costs more to produce (and therefore to own), the price
determines the buyer’s perception of value.
Price equals status, whether that
price is high or low. The first Shelby ever made was recently auctioned off at
a record $13.8 million. No other American car has ever brought so much at auction.
Some buyers are thrilled to find a
bargain and pay as little as possible for what they need. Others boast about
their robust buying power and their ability to afford true luxury. Which kind
of buyer do you want to attract in your speaking business?
Product pricing is one of the
greatest determining factors in how you are perceived as a speaker, author or
consultant. Establishing confident pricing for your fees and products will
carry your business far along the road of success.
Commanding the right price can give
your career the same kind of thrill-injection you might find while hugging the
curves at high speed on a country road. Gloves and goggles aren’t required here
– just a little deliberation and some common sense.
Selecting
Your Model for the Best Performance
Popular business models impact the
Pricing and Positioning at each level of your sales funnel. Let’s take a look
at some of the major types to consider when pricing your products, consulting
services and professional speaking fees.
Fixed Price Model for Products: When pricing products, using this model means setting the
price scale and sticking with it. There are various price thresholds for
products that follow this pattern, depending on the threshold of entry. If your
lowest priced product sells for $27, the next step up might be $47, $67 or $97.
On the high end, if you have a $497 product, your next step up might be $997,
$1,497 or more.
This table can serve as a framework
for low price, mid price and high price products:
Speaking Fees: Professional speaking fees begin as low as $1,000 in some
cases, and range well above $100,000 for well-known celebrity speakers. Picking
the perfect price-point is not easy. I was counseling a recent Olympian turned
talented professional speaker, and advised him to quote speaking fees
confidently for Fortune 500 companies. The advice I give is that you know you
are asking the right price when your palms sweat when you quote your fee.
Your ideal fee is based on a variety
of factors which include:
- Your skill from the platform
- How assertively you are marketing your speaking business
- The value of your content
- To whom you speak (i.e. schools versus corporation)
- Where you speak (locally versus International)
- The duration of the speaking engagement
- Your level of fame
Parting
Out Your Fees for Maximum ROI
Bear in mind when you price your
products and speaking fees that you will need to account for your cost of goods
sold (COGS). This includes commissions you’ll have to pay to affiliates, joint
venture partners, agents, managers and speakers bureaus. You’ll also want to
account for your travel expenses and any additional time you spend developing
your products and material.
When you set your price, consider
the value you are offering to your clients and customers. Are you transforming
a process for them, or are you giving them a life-changing transcendental
experience? Do you have a strong opener, solid content and compelling close?
Just as charging too little can work against your image, charging more than the
value they receive can tarnish your reputation and make you seem over-hyped.
If you’re too busy, raise your
rates. If you’re not busy enough, consider ways you can generate increased
value to your audiences. Remember that there will always be someone willing to
offer a lower price than yours. Be confident in your offering, and set your
price accordingly.
Be sure to take into account your
credentials and certifications as well as any star-power you may hold as
currency. Are you a professor? A published author? A well-known celebrity? A
skilled entertainer? Each one of these factors has its own price point.
Be clear about your own strengths,
then set your price accordingly. You will naturally attract the prospects,
clients and customers who see and appreciate your uniqueness. Your price may
not set a world record, but to your clients and customers, the value you
deliver will be pure gold.
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