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Today I want to tell you about a money/business principle that changed the way I conducted my business forever.
Long back I read a short but fantastic book called The Science of Getting Rich by Wallace D.Wattles
This book was written in 1910 and the teachings in this book gave birth to very famous books like The Secret, Think and Grow Rich, etc. In fact this is called as the original Think and Grow Rich.
One of the principles that I learned in this book was about the concept of product value and cash value.
Product Value is the value that your customer receives when they purchase your product/service.
And Cash Value is what you get in return from them when they buy your product/service.
According to the author, the Product Value always has be way way way higher than the Cash Value you get.
What does this mean in the online coaching world?
It simply means that you create a quality course but sell it at a slightly lesser price.
So the product value is greater than the cash value.
Here’s why this process works:
The customer doubts why you are selling your course at such a less price.
But because the price is less, they buy your course.
But they are hesitant that the product value will be lesser because the cash value is lesser.
But inside the course they discover that you have given immense product value.
Way more than what they paid for.
This shocks their system. Pleasantly.
Because in life we are not used to the product value being greater than cash value.
We always feel cheap things are of a bad quality.
You have to take advantage of this mentality.
The shock they receive changes their perception about you.
They are not able to find any faults.
And they finally realize they benefited more than what they paid for.
Such a person will do something for you which no other marketing tactic will do, which is, spread word of mouth.
And next time you have any offering, this person will buy without even thinking twice, EVEN IF THE CASH VALUE IS HIGHER.
This is the reason why I have always sold my courses/workshops at a lesser price that what my competitors do.
Because I am always looking at the Customer LIFETIME VALUE and not just at the cash value of that particular transaction.
And it really works.
For instance, sometimes when I announce to my existing customers that an advanced photography workshop will take place soon, it gets fully booked inside even 30 minutes sometimes.
Because of that shock they received when they interacted with me for the first time.
This principle goes against what my competitors are teaching their students.
They are telling their students to price their courses as high as possible.
I had written an article earlier on why this is the wrong strategy.
I also suggest that you get your hands on The Science of Getting Rich. It’s only Rs.29 on Kindle.
It’s not a perfect book by any means but it does have some amazing principles like this one.
And the best part is that you can literally finish that book inside 1 hour.
I hope this tip helps you.
Want to learn the entire process of creating and selling online courses and starting an online coaching business?
Then check out my main course called Online Course LaunchPad which takes you from A to Z of launching your first ever online course.