There’s a lot of confusion about premium versus regular and how to do it effectively. The truth is, there are two ways to do premium versus regular, and it really depends on what you’re trying to do.
Before I talk about the two ways, let me explain something about purchasing decisions and engagement levels.
Price Ranges
Simply put, if prices are very close, there’s just one decision to make, if prices are far apart, there are two decisions to make.
The difference between US$45 and US$47 is nominal, and if you’ll pay $45, you’ll pay $47. In some ways, it’s the same price.
However, US$45 and US$95 are two very different prices. Which makes two decisions- would I pay $45? And then, would I pay $95?
Remember this— one decision versus two decisions.
Engagement Levels
Any offer you make will require a certain amount of engagement from the client or customer. A book or video is a certain level of rather distant engagement. A group virtual class is another level of engagement. An in-person class is a higher level of engagement. An individual, one-on-one session is (usually) the highest level of engagement.
By “engagement” I mean “intimacy.” With each step up in engagement, the client has to be more vulnerable, show up more, and commit more time and heart.
When two offers have similar levels of engagement, the decision-making is more simple. You’re getting a video? Do you want a book with that? Easy.
However, if offers have different levels of engagement, the decision-making becomes more complex. “Yes, I wanted a video, but am I ready to show up face to face with someone who is going to do work on me? Not so sure…”
Two Examples of Premium versus Regular
Here are two different premium versus regular offers, and what will happen with each.
First Offer: Homestudy program with premium bonus
Let’s say you help couples in long term relationships deepen their intimacy and reclaim their passion, and you’ve created a home study program. The “regular” version was a PDF and 8 audio recordings from a live class you taught and costs $135.
Then you created a “premium” version with 3 additional audios, interviews you did with couples, going in-depth into what they actually did to improve their relationship.
The premium version, with the additional interviews, cost $149.
What will happen: Because the premium and the regular have a very similar price, only about a 10% difference, and the engagement level is consistent, audios and then more audios, history has shown that most people will buy the premium version.
if you are looking to sell more premium versions, do it this way.
Second Offer: Homestudy program with premium session
Let’s say it’s the same offer, the PDF and 8 audio recordings from the live class for $135, but this time let’s say the premium version includes a couples session with you, and costs $250 total, where couples sessions are normally $150.
What will happen: Because the premium price is very different, nearly double the regular price, and because the level of engagement is very different, audio recordings versus a live, intimate couples session facing all of your hardest issues with someone you may not know that well, history has shown that the premium version will go nowhere.
Hardly anyone will buy the premium version, except perhaps current or past clients who are already familiar with working with you who want a cut rate on a session with you.
If you want to sell individual sessions, make them a completely separate offer, to be presented at a different time than the home study program.
Which one to do?
Both are good options depending on what you are trying to accomplish. The critical part is understanding what you want to accomplish with the offer so you can choose the right one, and not be disappointed.
If you’re facing this, take a moment and breathe into your heart. What feels right to you? What serves your business more? What serves your clients more? Put aside all the hype of what people say you “should” do, and just be clear what you are wanting here.
Then you can move forward with clarity in your own heart.
And here’s my question: Do you have a good example of a regular/premium offer you’ve made and the results you’ve gotten? Or a question you have about this? Make a comment or ask a question below!
P.S.: Need some real hands-on help with pricing your offers and selling them?
April is right around the corner, and with it our two core programs will be starting up, the first Monday in April.
Foundations1: Clients and Money covers crafting and pricing offers, and then selling them (among many other things.) It’s for people in start-up, or with very low income, who just need to get clients and money in the door.
Click here for info and to register for Foundations1.
Foundations2: Expand Your Reach is for those whose income is at times okay, but inconsistent, and you knew if you reached more people, you would have a full, consistent business. It covers website strategy and networking (including networking for introverts!).
Click here for info and to register for Foundations2.
Don’t know what you need? Take our Readiness Assessment. We can help you learn where your business is developmentally and what you need to help it grow.
Click here for a Readiness Assessment.
Another Option
Maybe you’re beyond start-up and ready for some personal help, but not quite ready or wanting individual coaching. I want to encourage you to check out our Small Group Coaching. No more than 6 per group, with personal attention, tracking and love from one of us.
Here are more details: Small Group Coaching.
Feel free to either fill out an application for the group you are thinking of directly, or getting a Readiness Assessment to see if Small Group Coaching, or something else, would be better for you.
10 Responses
It was so helpful to see you compare different types of premiums, Mark. Thank you! I hadn’t thought about the different levels of intimacy and how that can impact people’s decision making process. I recently offered my first premium package. The regular package was an online group course and the premium was that plus 2 in-person sessions. It may have been beginners luck, and it’s a small sample size, but of the 21 students that purchased, 7 of them opted for the premium package. Will be curious to see if this trend continues with future sessions of this course. Thanks again, Mark!
Lisa- that’s fantastic! 2 questions: 1) How close were the prices between the two offers, and 2) The people who purchased the premium, did they know you at all already? Meaning, had they been on your email list or otherwise met you?
So curious to hear! And so glad you got that response.
Hi Mark,
I just offered a course which runs 7 weeks, in person. My version of “premium” was to offer an Early Bird Bonus…if they signed up by a certain date (2 weeks ahead of start date) I ordered them a bonus book worth about $15 for free.
This motivated some people to sign up early so I could see if the course would run, and gives me a deadline to order the books/course material to run the course as well as the Early Bird Bonus.
It was the first time I tried this, and it seemed to work well.
Shelley- fantastic! I’m a big believer in early birds for that reason. So glad it worked!
I teach meditation classes for $12/class and recently I began offering mini-private sessions before class at 30 minutes for $15. And mention there is just one time slot for this “special offer”. I have had someone email me quickly to schedule the private session now for 4 consecutive weeks. One person has already booked up the next 2 weeks. Most of these people already knew me but a few were referrals.
Both involve in person engagement even at the same location. Both close in price (though I realize in some ways it’s more than double the original price) but it seems to be working. One question though. I tried booking 3 mini sessions in a row the first time and it was too much with the class following right after. So I feel limited to how many I can offer. There is some attraction to saying only one time slot available though.
Comments and suggestions appreciated
Thank you,
Janette
Hi Janette- what a great idea! Two things- 1) if it’s filling quickly, you’ll probably want to raise the price. 2) Is it possible to work with 2, 3, or 4 people at a time to accommodate more people and make it more profitable?
I’ve tried this just once, and spread the prices apart by $400. The premium offer gave two more sessions with me. No one ever bought one.
I feel like I am so far from mastery, even now.
Sigh.
Yeah… I hear you, Sue… Keep practicing with it.
Excellent insight, especially when evaluating which offer a buyer would choose. But are we talking about cold buyers, or referral buyers? Yes, previous buyers who were satisfied would buy the larger package, but cold buyers are more likely to “try you out” first. Referral buyers could buy the larger package if they were sufficiently warmed up (by an email sequence or a joint venture partner – or perhaps a case study provided during a preloaded launch sequence)
Great Insights. Beautiful Clarity. Loving It. 🙂