Teaching2014-08-04·18 min

How To Price Your Product Correctly

How To Price Your Product Correctly

Eben Pagan teaches a systematic framework for pricing products based on value translation and positioning. He demonstrates how to identify your prospect's unique currency, translate your product's value into their terms, and frame pricing to show 10x return on investment.

How To Price Your Product Correctly

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Key Moments

How to Price Your Product Using Value Translation -- A systematic approach to pricing products that demonstrates 10x value to prospects

Payment Plans — Three Monthly Payments Remove Objections

Offer payment plans to remove financial objections - 'three easy monthly payments of $177 each so you have literally no excuse'

8:37

Reference Live Training Prices to Justify Digital Pricing

Reference your live training prices to justify lower digital product pricing - 'If this was live training, I'd charge $2,000+'

1:39

Hourly Value Formula — Yearly Income Halved, Remove Zeros

Calculate hourly value using yearly income divided by half, then remove three zeros - if you make $100,000 per year, you make about $50 per hour

5:51

Identify the Prospect's Coin of the Realm Before Pricing

Identify your prospect's unique currency or 'coin of their realm' - the thing they're trying to accomplish that functions like money in their value system

1:06

Two Questions Prospects Unconsciously Ask Before Buying

Prospects unconsciously ask two critical questions: 'How can I know this is worth a lot more than I'm paying?' and 'Can you prove the result you're promising?'

0:31

Relevant Clips26

  • How-To

    How to Price Your Product Using Value Translation -- A systematic approach to pricing products that demonstrates 10x value to prospects

  • Teaching0:31

    Humans Are Bad at Translating Value Across Realms

    Humans are bad at putting value on things and translating value from one realm to another - they need someone to connect the dots and explain how the value works

  • Teaching0:31

    Two Questions Prospects Unconsciously Ask Before Buying

    Prospects unconsciously ask two critical questions: 'How can I know this is worth a lot more than I'm paying?' and 'Can you prove the result you're promising?'

  • Teaching1:06

    Identify the Prospect's Coin of the Realm Before Pricing

    Identify your prospect's unique currency or 'coin of their realm' - the thing they're trying to accomplish that functions like money in their value system

  • Teaching8:37

    Anchor Aspirational Income Numbers Starting at Six Figures

    Start with aspirational income numbers that prospects want to achieve, not just current income - $100,000 is a magic aspirational number for most people

  • Teaching5:51

    Hourly Value Formula — Yearly Income Halved, Remove Zeros

    Calculate hourly value using yearly income divided by half, then remove three zeros - if you make $100,000 per year, you make about $50 per hour

  • Teaching8:37

    Payment Plans — Three Monthly Payments Remove Objections

    Offer payment plans to remove financial objections - 'three easy monthly payments of $177 each so you have literally no excuse'

  • Teaching1:39

    Reference Live Training Prices to Justify Digital Pricing

    Reference your live training prices to justify lower digital product pricing - 'If this was live training, I'd charge $2,000+'

  • Teaching

    Use Conservative Estimates to Build Pricing Credibility

    Use conservative estimates to build credibility - assume your product only delivers partial results rather than full promises

  • Teaching

    Offer Must Return 3x — Ideally 10x — the Investment

    Your offer should provide at least 3x and ideally 10x or more value than what you're asking prospects to invest

  • Teaching13:02

    Break Down Time Savings Into Daily Monthly and Yearly Values

    Break down time savings into daily, monthly, and yearly dollar values to make the math concrete and compelling

  • Answer2:19

    Unique Currency — the Coin of Your Prospect's Value System

    Unique currency is the coin of your prospect's realm - the thing they're trying to accomplish that functions like money in their value system. For weight loss, it might be pounds of fat. For dating coaching, it could be number of dates or avoiding rejection.

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  • Answer1:39

    Find the Unique Currency Then Show 10x Return

    First identify your prospect's unique currency - what they're really trying to accomplish. Then translate your product's benefits into their terms and connect it to dollar values. Show at least 10x return on investment using conservative estimates.

  • Answer

    Two Questions Every Prospect Silently Asks About Price

    Prospects unconsciously ask two key questions: 'How can I know that this is worth a lot more than I'm paying for it?' and 'Can you prove the result you're promising?' Your pricing presentation must answer both questions clearly.

  • Answer12:30

    Conservative Estimates Build Trust While Proving ROI

    No, use conservative estimates instead. Back off from your biggest promises to build credibility. Show value even in worst-case scenarios. This makes you more trustworthy while still demonstrating clear return on investment.

  • Answer1:39

    Frame Digital Pricing Against Live Training Cost

    Reference what you would charge for live training, then position your digital product as a bargain. For example, 'If this was live training, I'd charge $2,000, but because it's digital, I can offer it for much less.'

  • Answer9:28

    Hourly Value Calculation — Use Aspirational Income Numbers

    Take yearly income, divide in half, and remove three zeros. So $100,000 becomes $50/hour, $50,000 becomes $25/hour. Use aspirational income numbers that prospects want to achieve, not just current income.

  • Quotable

    Frame Price Against Value to Justify What You Charge

    What you want to do is you want to set up the value proposition and really frame the price so it's positioned as being much, much more valuable than the price that you're charging for the product.

  • Quotable0:31

    Humans Bad at Putting Value on Things — Connect the Dots

    We humans are really not very good at putting value on things. We're also bad at translating value kind of from one realm to another. We need someone to connect the dots for us.

  • Quotable2:54

    10x Return Minimum Before Selling Anything to Anyone

    I don't like to sell something unless I'm convinced that if a person buys it and uses it that they can get at least 10 times their investment back.

  • Question1:39

    Unique Currency — What the Prospect Is Really Buying

    How do I frame digital product pricing compared to live training?

  • Question2:54

    Questions Prospects Ask Themselves About Your Price

    How do I price my product to show clear value to prospects?

  • Question2:54

    How to Calculate Hourly Value for Pricing Presentations

    How do I calculate hourly value for pricing presentations?

  • Question

    Digital Product Pricing Framed Against Live Training

    What questions do prospects ask themselves about pricing?

  • Question2:54

    Conservative Claims Beat Big Promises in Pricing

    Should I use my biggest claims when presenting pricing?

  • Question2:19

    How to Price Your Product to Show Clear Value

    What is the unique currency concept in pricing?

Entities Touched

Canonical Teachings

Understanding Prospect Psychology in Pricing

Eben reveals the two unconscious questions every prospect asks about pricing and why humans need help connecting value across different realms. This psychological foundation explains why detailed value framing is essential rather than simply stating a price.

The Unique Currency Framework

The core concept of identifying each prospect's unique currency - their primary desired outcome that functions like money in their value system. Eben provides examples from weight loss and dating niches to illustrate how this works in practice.

Wake Up Productive Pricing Case Study

A detailed breakdown of Eben's actual sales copy showing how to calculate hourly value, use conservative estimates for credibility, and translate time savings into compelling dollar amounts. The example demonstrates how a $497 product delivers $6,000+ annual value.

Advanced Positioning and Payment Strategies

Techniques for leveraging live training prices to position digital products as exceptional value, plus the psychology of payment plans to remove financial objections and increase conversion rates.

Procedural frameworks taught here

Counterpoint 2

Claim:Just state your price and let customers figure out if it's worth it

Reframe: You must actively frame and translate value because humans are bad at determining worth across different realms

Claim:Use your biggest, most impressive claims to justify your pricing

Reframe: Use conservative estimates and worst-case scenarios to build credibility and trust