Pricing Tips

Lifelong learning programs with strong operating margins and positive nets understand that pricing for profit is the key for successful finances. By knowing key financial benchmarks, as well as best-practice pricing strategies, a lifelong learning programs’ pricing serves as the pathway for covering costs and generating a positive bottom line.

Market Pricing

It is important to have a formula (or formulas) that guides you to the price range you should be charging, but you cannot depend just on a formula. Market pricing includes having a formula but also includes comparing the price you need to charge to the competition and what people or clients have paid in the past.

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• Reduce costs to reduce the price.
• Keep the price in the $200-range if the offering has more value.
• Do not compete and do not offer the course.

Listing Prices

With open enrollment offerings, understanding price listing strategies is important.

Do not end prices with decimals and cents.

Do not end prices with round numbers, such as $50, $100, $150, etc.

End your prices with 5’s and 9’s, such as $49, $125, $145, $195, etc.

Understand the importance of price breaks – the point at which most people will say the price is too expensive. You can contact LERN for a list of open enrollment and contract training price breaks, but $20 is a price break, so you want to price at $19 or $25 (not $21, $22, $23, or $24). $100 is a price break, so you want to price at $95, or $99, or $125 (not $105, $109, $115, or $119).

Do not hide your price. Also, do not highlight your price. Lifelong learning programs sell their products and services on their value and not on their cheap price, so listing the price first only stops a person from reading the course description if the price is too high. You want them to read the description, get excited, and then see the price; thus, the reason to list the price last.

Just by reviewing your pricing, using these price listing tips, could increase your revenue by 10 percent.