Welcome to your new pricing guide! It can be difficult to figure out where to start, so I’ve made a sliding scale pricing calculator based off of my pricing guide that has worked wonders for me.
Before we get to the fun stuff
Let’s understand why this pricing guide will work for you.
01
People usually buy the middle option.
Pricing psychology is well-established: when given three options, clients naturally gravitate
toward the middle. It feels safe, reasonable, and like the best value. Your entire pricing
structure is designed around this behavior.
02
Collection 1 is your middle, not your entry.
A la carte items are the budget option. A client can buy just an 8x12 album if they want.
But once they add 20 digitals, they’ve already spent more than Collection 1, which includes
the album, digitals, and 10 extra images. That’s the value proposition.
03
A la carte prices anchor your collections.
This is where the psychology of pricing works in your favor. When a client sees that buying
an album alone costs nearly as much as Collection 1, the collection sells itself. Collections
2 and 3 give big spenders a place to go, and make Collection 1 feel like the smart,
reasonable choice for everyone else.
How to use this guide
Read This.
What’s the average amount you want to earn per client? We’ll use that number to price Collection 1. Some clients will buy individual items, and others will upgrade to premium collections. The pricing is designed so most clients spend around this amount.
1
Enter your Collection 1 target
This is the only number you will pick, and it’s the target amount you want to earn per client.
2
Everything else is set up automatically
All of the collections, the session fee, the a la carte items are all auto-calculated based on percentages that mirror Michael’s pricing structure. No more guessing how much more expensive your top collection should be from your middle.
3
Enter your cost of goods
Fill in your cost per product so you know exactly how much profit you take home when a client purchases from you.
4
Make it yours over time
Continue to adjust this as your business progresses, or make personal changes to the numbers if they don’t feel perfect.
Your Collection 1 target price
$
Cost of Goods
It doesn’t matter how much you charge. It only matters how much you get to take home. Type in your costs so you can see how much profit you’ll have per product.
