Pricing for teachers/experts/creative entrepreneurs

Coursera has a course by BCG and Garden School, which reminded me of an aspect of pricing for musicians or music teachers or any experts or small or almost solo entrepreneurs, especially on the creative side.
As an online teacher or video course maker or as an expert and small business, the economics side of price is the minimum need to sustain.

But the minimum is not just a the cost of tools or Internet etc, but since time is taken to make the content and courses and for selling them…

…time is taken away from any other source of livelihood and therefore, the maintenance and sustenance of the teacher, the human itself is the minimum pricing, based on economics.

2) customer value based pricing: how much are they ready to pay? accurate, detailed. actionable courses that saves them money, time and frustration. based on that, by testing prices, coming to a particular price + a payment plan.

This is a good part – value provided is naturally to be the determinant of what they want to pay. I wouldn’t want them to make a payment based on anything else other than value they get.

3) competitors – because of the quality and uniqueness, entry barrier to the skill level at which I play, premium pricing is seen as appropriate – specialist, vs commodity.

not impulse buying, but wanting to be part of the high quality and uniqueness of the brand and teaching.

often I hear someone telling how they are trying to get the impulse buyers. as if that is the only way anyone would by their product.

Tripwire is a term that digitalmarketer.com uses a lot and maybe even started using in this context – a low value impluse buyable first sales, to convert a lead into a customer, to whom later higher dollar products are sold.

in that context, in their system, they have a plan for the impulse buying – it is not for bringing in profits, but to get a customer to go beyond the inertia and even maybe cover original ad costs.

without these details and subtlety when one is thinking only about impulse buyers, well, they really have a lot to learn about business, how value based selling works, who they are etc! If he doesn’t think his product is worth anything more than an impulse buy, well…

That is one thing. Then, the next is how involvement seems to be the word used in more business circles to talk and discuss about the behaviour with respect to price thresholds, how long someone thinks to make the decision – because of complexity or visibility or price etc

Let us not be reductionistic and think only of impulse buyers, which is the lower form of selling attempt or the very initial form. not knowing anything beyond need to be remedied with studying what is already being taught so well in different courses.

think how you are uniquely solving the problem, how you are making new products in your realm having to pass your threshold and how you make that threshold higher… instead of being such a generic and not know about product benefits, values, who we are etc…

the final price, and your profits is not the minimum you can get. it is about the number of people you can reach with high value.

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