When pricing a masterclass, you don’t want to go too high or too low. Placing your price too high might scare people away, and too low might make them think you don’t know what you are offering. How do you find a balance?
Before pricing a masterclass, you need to have an in-depth knowledge of your market, audience, and the value you are offering.
What is your market? Your market is your competitors (other classes available to your prospects). Your audience is those with the potential to buy your service. The value you are offering is what sets you apart from the rest.
Want to know more about how to price your masterclass?
1. Know Your Market
What niche have you chosen? What is your focus topic? How many instructors have taught a class similar to yours? What kind of reviews did they have?
Before pricing a masterclass, you need to understand your competition and related substitutes perfectly.
When prospects can’t afford a masterclass, they tend to check out those related to it to see if they can purchase for a lower rate. So, when doing your research, you observe your direct competitors and substitutes.
Get an idea of your competitor’s pricing alongside the value they are offering. Don’t be quick to look at the pricing and what they offer.
Check if they are offering freebies, and more importantly, if they are offering the class for free.
If there are free classes on the same topic you are offering to teach, why should people have to pay you when they can get the knowledge elsewhere for free? If this is the case, you’ll have a lot to prove.
After researching, you’ll decide whether to switch up your value or lower your pricing. If you aim at pricing high, ensure you are offering quality stuff. You don’t want bad reviews that will prevent people from buying in the future.
If people already offer the same class for free, you’ll need a plan to convince your prospects that free doesn’t equal quality.
Another thing to consider when pricing your master class is the economic situation. If there is an economic downturn like COVID-19 brought, be strategic with the pricing.
You don’t have to lower the price. Think of other methods like slashing the price for a limited period.
Ensure you state why you are cutting so that your prospects don’t think it’s because no one is buying. Instead, they should believe you are selfless for considering their financial state.
2. Know Your Audience
The next step is knowing your potential buyers. Who are they? Students? Professionals? Are they going to pay for their course from their purse? Will the company they are working with pay? How much will they be willing to pay?
How desperately do they need this course? Will it open more opportunities for them, or do they need it to solve their problems?
What class of people are you targeting? High-income earners or average earners? If you set your masterclass pricing high for middle earners, they will not purchase even if you offer value they can’t get from elsewhere.
When you set a high price, be prepared to go all out. High-income earners do not accept mediocrity. If you don’t meet up to expectations, they are going to call you out.
Also, your accessibility matters too. When people pay that much for a class, you had better be accessible via emails, discussion boards, live sessions, and even phone calls.
So, you need to know your target audience and cater specifically to them.
3. Know Your Value
What you offer is a crucial aspect you need to consider before setting a price for your masterclass.
Are you dishing a lot of secret ingredients, or will you scratch the surface? What is your value proposition? How is your class going to be different from the millions out there?
Be clear on the value you intend to offer in your class. And convince your prospects that they will miss out if they don’t attend.
Tell them that you are not offering the regular online course that caters to thousands of people. They should understand that a masterclass does in-depth and is tailored, and exclusive, allowing them direct access to you, the facilitator.
Don’t be so scared to lose potential customers that you underprice your masterclass so much that the funds do not cover the time you spent planning and laying out the course structure.
Also, remember you are pricing them for your experience and expertise. You are valuable and providing valuable lessons; price accordingly.
You have the power to decide the worth of the value you are offering in your masterclass. However, it would help if you considered the price others in your niche offer and what your target audience is willing to pay for the value you will offer. If you can add more value to your masterclass to increase the price, go for it.
Do you also have an online course you’ll like to promote? Read this post on how to promote your online course.
Thanks for reading.