A Four Seasons Pricing Strategy

In an artificially generated voice reminiscent of the iconic tones of Morgan Freeman, I welcome you to this episode of the list building lifestyle Show, hosted by the talented email marketer Igor Kheifets. Today, we’re getting into the world of pricing strategies and their impact on your marketing success. We’ll challenge the common belief that lower prices always lead to better sales. Instead, we’ll explore how pricing affects the perceived value of your product and influences customer expectations. We’ll discuss the importance of understanding your market and audience, as different groups may respond differently to pricing strategies. Also, we’ll touch on the psychological aspect of pricing. How does a higher price point impact the buyer’s engagement with your product? This episode is designed to provide insights that could transform your approach to pricing and email marketing, all while keeping in mind Carlton’s advice on not underestimating the market’s tolerance for higher prices. So, let’s get started and uncover some strategic pricing secrets that could change the game for your email marketing efforts.

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I’m Igor Kheifets. And this is the list building lifestyle. The podcast for anyone who wants to build a wildly profitable email list working from home. If you’d like to make six figures travel the world and help people improve their lives in the process. This podcast is for you. I also invite you to claim a free copy of my best-selling book, the list building lifestyle Confessions of an email millionaire at igorsbook.com. Get the free book plus $3,000 bonus package that includes my best capture page templates, email swipe files, and traffic blueprints, visit www.igorsbook.com for details. And now it’s time to claim your list building lifestyle.

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It’s a common way that people think that it’s best to start with a low-priced product, because supposedly people will have a lower resistance to a lower price product. Now the logic is clear to me, but it doesn’t meet the real-world test. Because, you know, a lot of it depends on the market. And a lot of it depends on the thing you’re promoting. And what I learned is that putting the lower price upfront is not always the best. And you have to be testing different approaches with different markets and different traffic sources. There are some traffic sources where you know, you’re just going to really struggle to sell a higher ticket item. And that happens. For example, I remember, I was running a joint venture with somebody who built their list purely off of Facebook and Facebook groups and Instagram shoutouts. And their audience really struggled with the nine with a $997 price tag, their conversions were maybe a third of my expected conversions. And I attributed that to the fact that the audience did not develop that sort of relationship with the influencer to expect higher price stuff, especially that influencer promoted lower price stuff all the time. So, he kind of conditioned the audience to expect that this influencer will only send them lower price things. And that’s pretty much where he’s now going to be stuck. Because that’s how he built the relationship, a lot of that framing actually ends up carrying over long term. So be careful about how you structure it now, but at the same time, you know, you can think of many So, different companies out there

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that do not necessarily put up lower price things. Like there’s the Ferraris of the world, the Rolls Royce’s of the world, the different clothing brands that actually kind of thrive on the fact that they’re expensive, they kind of put that forward. No one likes expecting them to be cheap. They know when I travel, for example, I like to stay in the four seasons. It’s a really nice hotel, I know what to expect, and they’re not cheap. They’re really not. So anywhere I go, though, I’ll probably do the four seasons because I’m happy to pay more for the quality that I’m going to get. And what you’ll find is that online, when it comes to webinars or anything else, software or whatever, you will see that many people actually respond better to higher prices. In fact, we’ve been testing this by the way last year, we’ve had an affiliate offer where you know, I noticed that it sells well. And then I also noticed that a product owner was experimenting with prices because I’m on their email list and I’ve seen them start kind of pushing out like the you know, they had a 997 and then they also started kind of rolling on 1997 So pounced on they said Hey, can you build me custom funnel with 1997 so you can interested because I’m getting some good results on 997.

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But I’m pretty sure, absent any other changes, we can probably achieve a good conversion on the 1997 as well. I just had a hunch, I didn’t know. And they did. To their credit, they weren’t lazy about it, they were actually diligent and put it together for me. And so, the funnel they gave me literally, like, had no other visual changes, aside from the price tag, everything else remained the same. The offer was the same, the bonuses were the same. The presentation was exactly the same, the landing page was the same, the follow up sequence was, everything was the same. And what do you think the conversions that we showed were only 10% lower compared to 997? Which means, you know, almost insignificant difference, right? So that again, kind of reminded me of a big, big, big lesson that I learned from John Carlton, so John Carlton, this piece of legendary copywriter, but also business coach, like a very deep understanding of marketing. Very asocial though like not and you know, not somebody you can call up and go hang out with very different experience in person when I met him at the Genius Network, annual event, but as far as the business mind goes, like, he’s got the brains word for sure. So, when I was consulting with him for $2,500 an hour, the first thing he told me, and I was consulting with him about my soul is agency. And the first thing this guy tells me, he’s like, double your prices. I was like, What? Are you crazy, I’m already the most expensive guy in the market. You know, everyone’s trying to get to my prices, but they’re afraid. I already like beating all my competitors, as far as pricing goes by at least 50%. And, and there’s like, there’s no way I mean, we’re going to set the precedent in the market. It’s just outrageous, there’s no way. And he said, well, you never know what the market will tolerate, you really never know. And I didn’t listen to him at the time. But then over the course of the next two years, I just kept raising my prices by 20% by 10%. And gradually I ended up doubling the price. The only differences took me two years to get there, kind of like slow burning it. And the market just kept buying the market just kept buying and you know, it just you know that in and of itself and improved my reputation the market too, because all of a sudden, they’re looking at my stuff, like wow, he’s like three times now more expensive than his nearest competitor, there must be something to it. You see how people think so you suddenly position something on him for $500 and then you can put the same thing out for $1,000. Absent of any other change, and a lot of them will look at the $1,000 and immediately perceive it as a better thing. Now the other added benefit is that they’re actually going to use it

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Thank you for listening to the list building lifestyle, get access to the previous episode’s transcript of today’s show, as well as other exclusive content at listbuildinglifestyleshow.com. Also remember to claim your free copy of my best-selling book at www.igorsbook.com. It explains how I made millions with list building starting from scratch. Plus, I’ll give you $3,000 worth of free bonuses, including my best landing page templates, email, swipe files and traffic blueprints. Go to www.igorsbook.com now to claim your free package