Factors that impact pricing
The price of your course can be influenced by a variety of factors—some more obvious than others. Understanding these factors will help you set a price that feels fair to both you and your students, while also maximizing your revenue. It's also worth noticing which factors aren't mentioned here, but we'll cover that in a later lesson.
Lesson aim
By the end of this lesson, you'll understand the 3 key factors that should influence your course pricing strategy, so you know what to consider when setting your price.
Factor #1: The value of the transformation
Very few people buy a course for the learning experience alone. They buy it for the transformation it promises. So the first area to consider when pricing your course is the value of that transformation to your target audience.
Think of your course as a bridge that helps people get from where they are now to where they want to be. The higher the perceived value of that transformation, the higher the price.
For example:
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Landing a first job vs transitioning into leadership
A course that helps recent graduates land their first job might be priced lower than a course that helps mid-career professionals transition into a leadership role. The latter is more financially lucrative, so it can command a higher price. -
Knitting vs saving a struggling relationship
The outcomes of a course that teaches knitting aren’t as emotionally significant as a course that helps people save a struggling relationship. One is a hobby, the other is life-changing—so the price would understandably be higher. -
Learning a new language vs overcoming agoraphobia
If someone has been struggling with a particular problem for years, the value of solving it is usually much higher than learning a new skill. So a course that helps people overcome agoraphobia might be priced higher than a language course, even if the latter is more complex and time-consuming.
Remember 💡
The more significant the transformation, the higher the perceived value—and the higher the price you can charge.
Factor #2: Audience traits and expectations
The second factor to consider is your audience. This goes further than just your niche—it’s about understanding the specific segment of that niche that you’re targeting. The exact same course could be priced differently depending on who it’s aimed at.
We’ll cover this in more detail in later lessons, but your price should reflect what your specific audience members are willing and able to pay, as well as what they expect in return.
For example:
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Antenatal classes for UK vs US audiences
If you’re offering antenatal classes, you might find that UK audiences are less used to paying for healthcare services than US audiences. This could mean you need to adjust your price to reflect their expectations. -
Mental health for teenagers vs adults
Since they’re less likely to have disposable income, a course on mental health aimed at teenagers would need to be priced lower than an identical course aimed at adults. -
Snowboarding vs guitar lessons
If your audience is used to paying premium prices for help in this area, they might find a low price off-putting. On the other hand, if they’re used to free resources on this topic, they might not be willing to pay much at all. -
Personal development for high-earners vs students
At certain price points, some audiences will expect a certain level of depth, support or engagement—while other audiences might expect a more hands-off approach. This will affect the price you charge to meet their expectations.
Remember 💡
There’s no point setting a price that your audience can’t or won’t pay—but you do need match their expectations.
Factor #3: Competition and market norms
Finally, it’s important to take into account what others in your space are charging. This doesn’t mean you should copy them, but it does help you understand what your audience expects and what you can offer that’s different or better.
If you can clearly differentiate your offering, you can confidently charge more. But you should still anchor your price in line with your audience’s expectations.
For example:
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Coding courses for beginners
With the amount of free coding courses available online, you might find it hard to charge a premium price for a beginner course. But if you offer a unique approach or a guaranteed outcome like landing their first job, you can charge more. -
Relationship courses for couples
When the main alternative is expensive therapy sessions, you can charge a premium for a course that offers high-quality guidance, still for a fraction of the cost of weekly therapy. This is a market where people expect to pay relatively high prices elsewhere. -
Pottery courses for hobbyists
If you’re offering a course that’s more in-depth or more personalized than others in your space, you can charge more. But if there are plenty of other pottery courses available for $50, you might struggle to charge $500 without a clear point of differentiation.
Remember 💡
Don’t copy the competition, but you do need to take into account what else is on offer in your space.
Key point → Pricing is all relative
The key to pricing your course is to focus on the perceived value to your specific audience. That means understanding what they need, what they're willing to pay, and what they expect in return. It's not about guessing or copying other people in your niche—it's about connecting your course's unique worth to your target audience's needs.
Summary
Pricing starts with understanding the value you're offering, who your audience is, and what they need. It's not about guessing—it's about connecting your course's worth to your audience's needs. Once you've got a clear picture of these factors, you can confidently set a price that feels fair for both you and your students.
Next, we'll define your course's unique value proposition as a basis for setting your price.