Price and cost are very different and more complicated than you might imagine. A client recently mentioned that she was charging $99 for a workshop and people were balking at the price. She wondered if indeed it was a valid objection and she should consider dropping the price. It’s a fair question – what will the market bear? The problem is that how we arrive at our answer is sometimes deeply flawed. Someone telling you that something is simply too expensive isn’t a reason in and of itself to drop your price. I once had someone e-mail me to tell me that he would have signed up for my $249 workshop if it had been $99. The workshop was already sold out by the time he e-mailed me. The point is that it was too expensive for HIM and he is probably not my client. Feedback is important but you need to understand how to educate your client about the real cost so that they don’t object at the price.
Let’s take my client. Her $99 workshop is about effective relationship building and marketing and she’s built her own business this way so she has social proof that what she’s saying is actually true. She is targeting her industry and guess what? If they take her workshop and get one – just one client, it pays for itself ten times over. The price is irrelevant because it will MORE than pay for itself. Price is the check you write – that is all. Cost requires math. Thus this workshop will cost nothing and actually become an investment. That’s right it will PAY you to get the information.
I do a LOT of training. Let’s take negotiation training. I have NEVER trained someone who didn’t experience an increase in salary, benefits, income or better terms. No negotiation or poor negotiation is actually incredibly expensive. It costs a lot of money not to learn to negotiate. A LOT of money! That number can be as high as a $1 million loss for a woman who doesn’t negotiate her salary over the course of her career. The price of the workshop becomes inconsequential because the return is so high and the gain is nearly immediate. If I told you that a one-hour session with one client was worth $30k in negotiation gains, would that call be worth $1,000? If you said, “no.” You might need a math refresher.
The same is true with Business Development or Sales Training – every lost deal, lost client and lost opportunity costs a lot of money. If an organization or individual isn’t trained they are already paying a high price for the lack of training. It’s infinitely cheaper to write a check than bleed money month after month in lost revenue.
The point is that it is our job as providers to educate our clients to understand our pricing and the cost of going with a lesser solution or no solution at all. Not paying for training doesn’t save a few thousand dollars; it actually costs tens of thousands of dollars