[00:00:00] Welcome back to the Effortless Closing Podcast. Today we're diving into a game changer, the psychology behind premium pricing and how to sell at high value rates without caving into price objections.
Let me ask you something. Have you ever had a potential client really excited about working with you until they saw the price? Yeah, I know. Suddenly they're like, Thinking about it, asking if you have a cheaper option, or worse of all, ghosting you completely. And in that moment, you start second guessing yourself.
Is my price too high? Should I offer a discount? Maybe if I lower it, they'll say yes. But here's the thing. Lowering your price doesn't make selling easier, it makes it harder because when you compete on price, you become a commodity and commodities, they get compared, shopped around and picked apart. So in this episode, we're flipping the script.
I'm going to show you the psychology behind premium pricing, why the right clients [00:01:00] don't buy based on cost and how you can sell high ticket offers confidently without dropping a single dollar. If you're ready to ditch that discount mindset and start attracting clients who see your value and are excited to pay for it, this episode is for you.
Let's get into it.
Old Intro: In my third year of real estate, I went from being a struggling solo agent to becoming a top 1 percent agent in the United States, earning over half a million dollars annually without a team or burnout. This podcast is your go to resource for learning how to close deals effortlessly, build a thriving real estate business, and turn all your efforts into real results in half the time.
My name is Christina. I am the effortless closing coach and welcome to the effortless. Closing podcast.
Now, let's start with one of the biggest misconceptions in sales. Lowering your price doesn't make it better.
[00:02:00] It sounds counterintuitive, right? We're taught that a lower price means more people can afford it. So naturally, we assume it'll lead to more yeses. But in reality, it does the opposite. Lowering your price attracts the wrong clients, the ones who question everything, ask for extras, and, oh my gosh, hesitate to buy.
Even after they've committed, I've seen it happen all the time, even in my businesses and as a business owner struggles to close sales, they think maybe my price is too high. They slash it, hoping for more conversions, but instead of getting a flood of eager, ready to go buyers, they attract people who nitpick, delay, and second guess the decisions.
And worst of all, those same clients rarely turn into long term customers. I'm speaking from experience, not just from coaching and teaching business owners like you, but from my own mistakes, both in my real estate business and in my coaching business. And you think I would have learned my lesson the first time, but nope.
[00:03:00] Obviously, it's hard for me to learn the lesson because honestly, it's so ingrained in how we're taught to sell that it feels natural to drop our price when sales feel slow. That's why
I've built filters into my systems to catch myself if I ever start slipping into that mindset again. We'll talk more about this later, but first you need to understand why this happens. Why? Because when you discount your rates, you position yourself as a commodity, something people shop for based on price alone.
And when clients buy based on price, they don't see the full value of what you do. They just see a number. Think about it. When was the last time you paid top dollar for something and then treated it like it was disposable? Probably never. But when we get a discount deal.
A cheap service, a bargain bin item, a budget friendly option, we tend to value it less. Maybe we don't use it as much. Maybe we don't take it seriously. Maybe we even regret the purchase because deep down we associate lower price with lower quality. Let me give you a real life example because maybe this is you [00:04:00] too.
I recently treated myself to a brand new MCM handbag. It's beautiful, unique, and I am just absolutely in love with it. I'm very particular about putting it. Back in his dust bag when I'm not using it. I'm careful around the kids because my kids spill everything on everything. And I even think twice about what I put inside because it is covered and suede on the inside.
It is so beautiful. I love this handbag, but I also bought a 20 crossbody from Amazon. I love the way it looks. 20. People are like, oh, that's a really cute bag. And it's perfect for what I use it for. But since it's only 20, Honestly, I toss it around and the kids pull on it all the time. I shove it into everything and everywhere.
And when it eventually wears out, I'll just buy another one without thinking twice. But my MCM handbag, that's staying with me for a long time because they only made a handful of them and I genuinely value it. Now, think about this in terms of your business, how do people perceive your [00:05:00] service? What is the value they associate with you?
Because the same thing applies to what you sell. The price you charge directly impacts how people perceive your value. When you lower your rates, you're not making it easier to sell. You're making it harder for people to trust the transformation you're offering. And here's the kicker, when you start discounting, you are actually training your audience to expect it.
You condition them to see your price as flexible, to hold out for a better deal, to negotiate instead of deciding. And that's a dangerous cycle to fall into. That's exactly what happened to stores like Mervyn's. Do you remember Mervyn's? I remember the commercials, right? Where like the people are out the glass, they're like open, open, open, right?
I remember Mervyn's. I actually worked at Mervyn's when I was in high school or. Junior high ish. They got stuck in that discount trap until they collapsed and went out of business. It's why Macy's is struggling now. With Macy's, I bought this cute outfit that I love. Well, guess what?
I went to Macy's a week later and it was on sale and I went [00:06:00] right to the register and I said, I want a price adjustment. It was like a hundred dollars cheaper. It's a struggle for these companies. So when people associate your brand with constant sales and markdowns, they stop buying at full price.
They wait. They hesitate. They hold out for the next discount instead of committing. Let me talk about the reality of a low priced business. The entrepreneurs who struggle the most are the ones offering discounts. And always low ticket services. I want you to think about the business owners. You know, the ones who are constantly hustling, constantly promoting, constantly launching something new just to make ends meet.
Chances are they're the ones charging the least. And maybe that's you. You're working longer hours, juggling too many clients and always feeling like you have to convince people to buy. And despite all that effort, you're still not making the kind of money you want. Meanwhile, the business owners who are thriving, who have more time, more freedom, more revenue, they're the ones who position themselves as a premium price point.
They're not hustling for every dollar. [00:07:00] They're attracting clients who see the value , and say yes quickly and show up fully committed. This is why I tell my clients all the time, low ticket offers don't lead to an easy business. They lead to burnout.
Now, I do want to say this, there's a place for low ticket offers in your business, but they should be strategic. A low ticket offer can be an entry point, a way for the clients to try you out before making a bigger commitment. But the key is making sure it's attracting the right buyers, not price shoppers who just want the cheapest option.
Because when you price yourself too low. You are forced to sell to more people just to hit your income goal. That means more marketing, more selling, more client management, and way, way more stress. So instead of trying to be the affordable option, your focus should be on becoming the best option.
The one that delivers such undeniable value that price really becomes a non issue. Now let's get into [00:08:00] the psychology around premium pricing. Why do clients hesitate at premium prices in the first place? Because pricing isn't about money. Isn't that crazy? Like when I say that, I'm like, it's so bizarre to me even say that, but it's so true.
It's about perception, belief, and psychology. People don't make buying decisions based purely on logic. In fact, research shows that up to 95 percent of purchasing decisions are made subconsciously, driven by emotion, identity, and perceived values, and then justified with logic after the fact.
How crazy is that? This is why two business owners can offer the exact same service, but one charges 500 and is constantly struggling to close clients while the other charges 5, 000. And has a wait list. And what's happening here? Let's break down the three core factors behind premium pricing.
One price anchoring, how people compare prices. Humans don't evaluate prices in isolation. We compare [00:09:00] them to something else. What's. called a price anchor. Let me give you an example. Imagine walking into a high end steakhouse and seeing a 120 Wagyu steak on the menu. Most people won't order it, but suddenly that 70 filet mignon seems like a great deal.
That 120 steak was never meant to be the top seller. It's just a price anchor to make everything else seem more reasonable. Now, in your business, the same thing is happening. If someone has only seen low cost services, they might hesitate at a high ticket because they don't have a proper anchor for comparison.
But when you position your offer next to something even more expensive, or you emphasize the cost of inaction, this perception shifts. Studies show that when businesses introduce a higher price option. Their mid tier offer sees an increase in sales by as much as 26 percent. Simply by framing pricing differently, you can make a premium offer feel more justified.
Ad#3: Can I ask you something? How [00:10:00] much longer are you going to leave money on the table? I asked because I have an agent ECM right now who spent six years trying to figure it out on her own six years of closing deals, working hard and still not maximizing her income. Could you imagine how much money she lost in that time?
How many commissions slipped through her fingers because she was just guessing instead of following a proven system to optimize her business. Now she's finally building her machine that works 24 seven and brings in a consistent high value deals. What if she had done this years ago? I know this because I ran the numbers for myself.
If I had waited and not built ECM in my third year of real estate, I would have lost $3 million. $3 million. Is that crazy? Over the last six years. Instead, I earned that $3 million because I stopped leaving money on the table and optimize my business. So let me ask you. How much [00:11:00] is waiting costing you?
Because let's be clear, this isn't for agents who are struggling to get their first deal. ECM is for agents who already have business coming in, already closed deals, but know they could be making more per transaction, working with better clients and optimizing their success. And if you're already making close to six figures, but don't have a system that ensures every deal is high value deal, you're missing something.
That's why I built the effortless closing machine. Whether you need a step by step system, hands on coaching, or full business rebuild with me personally, I've got the solution for you. But you have to take the first step. Check out the links below for more information on how you can get connected with me.
The best way to do it is to grab a free 30 minute call with me and let's see what option is the best one for you. But you got to start right now. Are you ready? All right, let's get back to the show.
Number two, the pain of paying. How people feel about spending. Here's something wild. Brain scans show that [00:12:00] when people spend money, their brain processes it as pain. Isn't that weird? Like literally, the same region of your brain that activates when you stub your toe lights up when you swipe your credit card.
But here's where it really gets interesting. The perception of pain is lower when the purchase feels like an investment. When people believe they're gaining something greater in return, Whether that's transformation, time saved, or a major breakthrough, the purchase feels exciting rather than painful.
That is why premium buyers don't just look at costs. They look at what they're getting back. They don't think, wow, that's expensive. Instead they ask, is this going to give me the result they want? That's why when you sell at a premium level, your job. isn't just to talk about the price. It's to frame the ROI, the return on investment, so that the price feels insignificant compared to the transformation.
There was some research done by Carnegie Mellon found that when [00:13:00] businesses reframe pricing in terms of value rather than cost, conversations increase up to 20%.
So instead of saying, my coaching program is 5, 000, try this. This investment will help you generate six figures in revenue this year.
Number three, identity and commitment. Why high paying clients show up differently. One of the biggest differences between low ticket and high ticket clients isn't just how much they pay. It's how much they commit. Think about this. People who buy 97 courses often never finished them, but people who pay for a 5, 000 plus coaching.
are always in. Why? Because price impacts perceived importance. When someone invests heavily, they subconsciously tie that decision to their identity. It's no longer just a service. It's a statement about who they are and what they're committed to achieving. A study in behavioral economics found that when participants paid more for a seminar, their engagement levels [00:14:00] increased by 80%.
Why? Because their brain needed to justify that investment. So they paid closer attention, took action and saw better results. You need to understand that the right clients don't buy based on price. They buy based on belief.
That people don't invest in what they need. They invest in what aligns with their identity and the person they want to become that the more someone pays The more they value the service the more committed they are and the better results they get okay So then how do you shift your clients buying psychology?
I'm so glad you asked so if price isn't a real issue What is? Let me share a few ways to help with your perception, positioning, and messaging. And if you really want to learn how to master this and check out one of my programs, because I teach a lot of this in depth, if you want to attract premium clients who say yes with confidence, you need to one frame your pricing in terms of , ROI, not cost.
Example, instead of it's 3, 000 for my service. [00:15:00] You say, this will save you 10 hours a week and help you scale your revenue to 250, 000. Do you see the difference? Two, create price anchors to shift perception. If you offer a 10, 000 program, mention your highest level 25, 000 VIP package first. That way your main offer feels like a smart investment in comparison.
Three, sell the transformation, not the features. Clients don't care about how many calls they get. They care about how it's going to change their business and their life. Four, position your service as the must have option. You don't want to be the cheapest. You want to be the best investment they can make.
Okay, so now that you understand how pricing psychology works, how do you actually sell? Premium with confidence, because here's the thing, knowing why people hesitate at high ticket prices is one thing, getting them to say yes without flinching is another. I know. And that comes down to how you position your [00:16:00] offer, how you communicate the value and most importantly how you show up.
So let me break it down for you. Number one, lead with results, not features. One of the biggest mistakes I see business owners making is selling the details instead of the outcome. They list off all the features of their program, thinking that if they just explain everything that's included, people will see the value, but your clients don't actually care about how many calls they get or how many modules are in your program.
They care about, , what's going to change for them. Let's take an example. Imagine you're looking for a fitness coach. One trainer says you'll get six one hour training sessions, a personalized meal plan and a limited email support. Sounds okay, right? Now, another trainer says in six weeks, you'll drop 10 pounds.
You'll gain more energy than you had in years and finally feel confident in your favorite genes. Which one grabs your attention? The second trainer is selling the transformation, not the process. And that's exactly what you need to do. Instead of [00:17:00] saying you'll get six one on one coaching calls, You say, you'll walk away with a clear strategy that doubles your income in the next 90 days.
Instead of talking about how you get them there, paint the picture of where they'll be once they do go there. Because at the end of the day, that's what makes people buy. They don't want another call on their calendar. They want the results and they want them now. Number two, position your offer as the no brainer investment.
Have you ever had a potential client tell you, I really want to do this, but I just can't afford it right now. Now, sometimes it's true, but more often than not, it's not about the money. It's about how they perceive the investment because the reality is. People always find money for what they believe is valuable.
Think about it. How many times have you seen someone say they're broke, but then they go buy the latest iPhone or splurge on a weekend getaway or drop hundreds at Target without thinking about it. I see this all the time. People don't spend based on what they can afford. [00:18:00] They spend based on what they prioritize.
I'm going to say that again because it's really important. People don't spend based on what they can afford. They spend based on what they prioritize. And this is where most business owners go wrong. They assume that when someone says I can't afford it, it's about the price, but it's really about whether they see the cost of not taking action.
So instead of defending your price, flip the conversation. Let's say you're a business coach. Instead of saying my program is 5, 000 position it like this. If you keep struggling to close high value clients, you'll leave a hundred thousand dollars on the table just this year, but with this system, you can lock in high paying deals on repeat.
So the real question is. Can you afford not to do this? See the difference? You're not just presenting a price, you're showing them the cost of staying stuck. And when people realize that not investing is actually more expensive, they shift from, I can't afford this to, I can't afford [00:19:00] not to do this. All right.
Number three, create urgency without discounts. Let's talk about urgency. It is one of the crazy cool things that work. There's the FOMO. There's so much stuff. I got to plug this in because I love that. There's a Simpson episode. If you don't know, I love the Simpsons and they did one about NFTs and the first child and the FOMO train.
And it just, I love that episode because creating the urgency and having the FOMO and everything else is real. It is a real behavior. Okay, so let's talk about the urgency because if you don't give people a reason to act now, they'll push the decision off until later.
And to be honest, let's all be real. It never happens, right? We get busy, they forget, it never happens. But here's the key. Urgency should never come from discounts. It should come from value. A lot of business owners default to sign up now and get 500 off, but that just trains your audience to wait for a sale.
Like we talked about, right? Instead, we want to create the urgency by [00:20:00] increasing the perceived value. Here's how. What about a time sensitive bonus? When you enroll this week, you'll get an exclusive private session to map out your entire closing strategy or limited spots. And by the way, if you use limited spots, you have to be true.
If you're going to say that only has so many, be true, because then your audience learns that too. And if they can't trust you. Because you lie and you say limited spots, but you really let in a lot of people then they don't want to buy from you because there's no trust. So if you're using limited spots, you can say I only take five clients per month and two spots are already filled, right?
So that's a great way of doing it. Upcoming price increases. This one's a big one and I use this because I do. I'll start low with something. And then I'll increase my prices as I go, because once it starts getting traction and people like it, I'm going to raise the price to where it should be. So you can say, this is the last time a program will be available at this price before the next enrollment.
So use these three different things to help you out because it really does make a difference. [00:21:00] Urgency works best when people feel like they're losing out on something valuable, not just getting a temporary discount.
Because the truth is, people don't hesitate because of price. They hesitate because they don't feel ready. And when you create the right urgency, you help them realize that there's no reason to wait. And here's one more cool thing on this topic that I want to add about the urgency. If you truly know your people, your ICA, your niche, and you have a unique value all dialed in, and you truly, truly know them, you know, What that item needs to be to create that urgency, your people, your ICA, they are going to tell you through who they are, their behaviors, what they're looking for on what that urgency needs to be, what you need to do to create that urgency.
So make sure you know your clients very, very well and who you're serving. And when you do creating the urgency becomes very simple.
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All right. Number four, own your price with confidence. This is the part that trips up people the most, because you have the [00:25:00] best offer, the best messaging and the best positioning.
But if you hesitate when saying your price, oh, your clients will hesitate too. Pricing confidence isn't just about believing in your value. It's about holding your price without flinching. Let's say something. Let's say someone asks, do you offer discounts? If you respond with, well, not usually, but. You already lost.
You've opened the door for negotiations, but if you say, no, I don't offer discounts on my services because I know the results my clients get are worth every penny, that confidence is contagious. Now, if someone doesn't have the money and they really can't afford it, you just tell them to enroll when they're ready.
That's what I do with a lot of my clients. If they can't come into one of my coaching programs right now, I say, Hey, great. We have a payment plan. If that doesn't work for you, because sometimes I'm a little baffled that 125 a month is hard for some people, especially when they're running a big business.
So I'll say, Hey, when you're ready and it feels right. Come in next month, it's all [00:26:00] right, but I'm not gonna discount. I'm not gonna go create a special program just for them or give away something just because they are saying that it doesn't work. Right? So I need to be strong every time. The way you say your price matters just as much as the number itself.
If you say, my program is $5,000 with hesitation, your clients pick up on that. But if you say. This is the investment that will shift your business because once you learn this you'll never need to compete on price again They feel your conviction Confidence sells and if you don't believe in your price, why should they so selling premium isn't about convincing people to pay more It's about helping them see why the investment makes sense and that happens when you Lead with results, not features, because people buy outcomes, not processes.
Positions your offer as an investment, not an expense. So they see the cost of sticking around. Creates urgency through value, not discounts. So they take action now, not [00:27:00] someday. And then you own your price with confidence because if you hesitate, they hesitate. When you get these things right, premium clients don't just say yes.
They say yes quickly, with confidence and without questioning your price, and they kind of stick around a lot longer to trust me because they see your service for what it really is not a cost, but an opportunity. Okay, as I mentioned the beginning of this episode, you need to have filters in place that ensure you don't fall back into the comfortable ways of.
Price adjustments, because when emotion takes over, when you feel desperate for sales, when self doubt creeps in, when potential clients hesitate, you need something concrete to keep you from slipping back into that discount trap. Here is what my pricing filters look like. Feel free to use them and adjust them as you want.
Number one, do I really have a price problem check before you even think about adjusting your rates? Anyways, ask yourself these questions. Am I actually getting zero interest or am I just facing normal buyer [00:28:00] hesitation? Have I had clients say yes at this price point before? Is my messaging attracting the right people or am I marketing to the price sensitive audience?
This is actually a big issue that is overlooked, right? Your audience makes a difference. Most of the time pricing isn't the problem. It's positioning, messaging, and marketing, which I help a lot of entrepreneurs do because It is a struggle for everyone. Lowering your price won't fix that. It'll just mask the real issue.
Number two, the, am I discounting because I'm desperate rule? This one's a big one. I have a nice little sheet on my wall next to my computer that I look at it for this one. Sometimes, even when you have systems in place, you can come from desperation, right? I have built up businesses where for the beginning of the business, I was very desperate and I was like, I just need a deal.
I just need a deal. I just want a deal. Once I got my system in place, the ECM, which I sell and I teach, I actually built them in my own businesses first and then I [00:29:00] teach it to everybody else. Before that got into place, I didn't have consistent income. I didn't have consistent sales, but now that I have it, that desperation is lower, but sometimes it'll creep up into me.
Like if I have a slow start to the year, I'll be like, Oh no, is this going to be a hard year? Oh no. Right. So let's have this rule in place. So it doesn't creep up. This one is simple. Never adjust your price from place of desperation. When business feels slow, our brains trick us into thinking that lowering the price will fix it.
But desperation based pricing decisions never lead to long term stability. So I have a rule. If I ever feel like dropping my price, I take a 48 hour pause before making any decisions. I use that time to analyze my pipeline, check my messaging, and adjust my strategy, not my pricing. All right, this is very critical.
So put that up somewhere and have, am I discounting because I'm desperate? In place. Number three, the premium experience test. Premium pricing isn't [00:30:00] just about what you charge. It's about what your clients experience. So whenever I'm tempted to lower my price, I ask, am I delivering a premium transformation?
Does my branding, messaging, and offer reflect the high value I provide? If my price feels too high, do I need to improve the perceived value rather than lower the rate? Often, the issue isn't the price is too high. It's that we haven't framed the value well enough. Number four, the what would a high ticket business owner do exercise.
When I catch myself slipping into the discount mindset, I pause and ask, if I were already running a multiple seven figure business, would I be debating this price drop? Most of the time, the answer is no. The business owners thriving at a high level own their pricing. They don't apologize for it. They don't panic and lower it.
They refine their marketing positioning and sales process instead. And that's the mindset shift that takes you from just getting by to thriving with premium clients [00:31:00] who see your value. I built these filters into my business because I know how easy it is to let doubt. Creep in and make pricing decisions from a place of fear.
But every time I stick to these rules, I close high value clients with confidence and attract people who are excited to pay for my expertise. And this is what I want for you too. So if you've ever been tempted to lower your rates, or if you've already done it. and regret it.
Build your own pricing filters because premium pricing isn't just about setting a number. It's about having the discipline to stand by it. And when you do that, you stop competing on price and start owning your value. As we bring this episode to a close, I have to say, I love this topic.
Seriously. If there's one thing that can completely change the projection of your business, this is it.
Understanding how to position yourself as a premium level and confidently sell without ever lowering your price. Because believe it or not, just having a good offer. isn't enough anymore. [00:32:00] There's too much noise. Too many businesses are competing for attention. And if you're not standing out as the go to expert in your space, you'll get lost in the shuffle.
That's why pricing isn't just about numbers. It's about who you're speaking to, what they're focusing on, and what makes you different. You need to know who your ideal clients are and what they actually want, not just what you think they need. How to position your services as a must have solutions. So price is never the deciding factor.
How to market yourself in a way that attracts premium clients effortlessly. How to master your messaging so that people see your value instantly. And most importantly, how to confidently sell and close deals because that in itself is an art. This is what I teach and I'll be breaking down more of this here on this podcast.
So if you're a service based business owner, who's ready to stop undercharging and start attracting clients who are willing to pay for quality, you're in the right place. Let's recap. Lowering [00:33:00] your price doesn't make it easier to sell, it makes it harder. It attracts price sensitive buyers who are the least committed.
Premium pricing is about perception, not just numbers. When positioned correctly, your price stops being an objection. Clients buy when they feel safe. See the ROI and believe that investing in you is the right move. you sell premium by leading with results, positioning your offers as an investment, creating urgency without discounts and owning your price with confidence.
But before we wrap up, I want you to ask yourself this, are you truly positioning yourself as the best option? Or are you letting price hold you back? Because if you're tired of undervaluing your work, attracting the wrong clients, or feeling stuck in the cycle of chasing sales, you don't have to figure this out on your own.
This is exactly what I help my clients with, getting crystal clear on their positioning, Dialing in their messaging and building a sales process that attracts high value clients who say yes with confidence. [00:34:00] So if you're ready to take this even further, check out the links in the show notes to see how we can work together and how I can help you get there faster.
If today's episode hit home for you, let me know, leave a comment and a review. Not only does it help me keep bringing. You these insights, but it also helps other business owners find this podcast and shift their mindset around pricing. If you want to go deeper, check out my YouTube channel where I break down premium sales, messaging and marketing strategies in even more detail.
You'll get real world case studies, step by step strategies and the exact frameworks I use with my clients. Everything will be in the show notes below. That's it for today. Until next time, keep pushing towards a premium service offering and don't sell yourself short. You are worth every penny. I'll see you next week.
