Audience considerations
Your price should reflect the perceived value of your course to your audience—but that value is unique to each audience even if the product is the same. So, what should you consider about your audience when setting prices?
Lesson aim
By the end of this lesson, you'll understand which factors about your audience you should consider when setting prices for your course.
Factor #1: Financial situation
First, consider your audience’s financial situation. This includes the more practical aspects of their financial decision-making, and we can break it down further into several key areas:
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Payment source (business vs personal)
Where will your audience get the money to pay for your course? Will it come from their personal savings, a company budget, or a grant or scholarship? If they’re paying out of pocket, they may be more price-sensitive than if their employer is footing the bill. -
Income (how much money they make)
How much money does your audience make overall? This will affect how much they can afford to spend on your course in very concrete terms. If they’re likely to be on the lower end of the income scale, you may need to price your course lower. -
Disposable income (how much spare money they have)
How much money does your audience have left over after they’ve paid for all their essentials? This is more important than total income, because even if your audience are high earners, they may spend most of their money on other things. -
Financial obligations (what they must spend money on)
What other financial commitments does your audience have? If they have a lot of debt or family responsibilities, they may not be able to afford to spend much on your course. You’ll need to take this into account when setting your price. -
Financial goals (what they want to spend money on)
Even if it’s not an obligation, your audience may have other financial goals they’re saving for—like a house, a car, or a vacation. If your course is likely to compete with these goals, you may need to price it lower to make it more attractive.
Remember 💡
You’re pricing based on value, but that doesn’t mean your audience will have unlimited funds to spend to experience that value. You need to consider their financial situation when setting your price.
Factor #2: Willingness to pay
Next, consider your audience’s willingness to pay. This is a more psychological aspect of their financial decision-making, and it’s made up of three key areas:
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Price sensitivity (how much they care about price)
How much does your audience care about the price of your course? Are they likely to shop around for the best deal, or are they willing to pay more for a better product? This will vary between audiences and niches, so it’s important to think about. -
Financial priorities (what they want to spend money on)
Some audiences love to spend money on health and wellness, for example, while some would be hesitant. Some people love spending on travel, while others see it as a waste of money. Understanding your audience’s financial priorities can help you set a price that they’re more likely to pay. -
Buying habits (whether they’re used to spending in this way)
Even if the perceived value is high, some audiences just aren’t familiar with spending anything in particular niches. Sometimes they’re used to getting free content in that area, or perhaps it’s a topic they’ve never considered paying for before. You’ll need to take this into account when setting your price.
Remember 💡
Just because they can afford to pay doesn’t mean they will. There’s more at play than how much money they have in the bank.
Factor #3: Value of the outcome
Finally, consider the value of the outcome to your audience. This is the most important factor in setting your price, because it’s what your audience will be paying for. It’s made up of three key areas:
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Tangible benefits (what they’ll get from your course)
What concrete benefits will your audience get from your course? And, more importantly, how much are those benefits worth to them? If your course will help them make more money, save time, or improve their health, they may be willing to pay more for it. -
Intangible benefits (how they’ll feel after taking your course)
What emotional benefits will your audience get from your course? Will they feel more confident, more fulfilled, or more connected to others? How much are those feelings worth to them? This can be harder to quantify, but it’s just as important as tangible benefits. -
Awareness of the benefits (how well they understand the worth)
Finally, how well does your audience understand the benefits of your course? If they don’t truly understand the extent of the value they’ll get from your course, they may not be willing to pay as much for it.
Remember 💡
The value of your course is unique to each audience, even if the product is the same. You need to consider how much the outcome is worth to them specifically when setting your price.
Examples of different audiences
Here are some examples of how different audiences might affect your pricing strategy:
Example #1: Luxury interior design course
The audience are high-net-worth individuals who are looking to learn how to design their own luxury interiors. Here’s what you might consider about this audience when setting your price:
- High income - The audience for this course is likely to have a high income and disposable income, so they can afford to pay more.
- Low price sensitivity - They’re not likely to be as price-sensitive as other audiences, because they expect to pay more for luxury products.
- Buying habits - They’re used to spending money in this area but they might usually spend on hiring a designer rather than learning to do it themselves.
- Price range: $500 - $2,000
Example #2: Starting a business course
The audience are stay-at-home parents who are looking to start a business from home. Here’s what you might consider about this audience when setting your price:
- Low disposable income - They may have limited disposable income because they’re living on one income and have a lot of financial obligations because of their children.
- High price sensitivity - They’re likely to be very price-sensitive because they’re on a tight budget and need to make every dollar count for their family.
- Buying habits - They’re not used to spending money on business courses, so they may be hesitant to pay for this one if they’re not confident it will work.
- Tangetible benefits - Provided you can give them a high chance of success, there is a clear route to making money from the course.
- Price range: $200 - $1,000 (depending on the depth of the course)
Example #3: SQL for beginners course
The audience are junior developers who are looking to learn SQL for the first time. Here’s what you might consider about this audience when setting your price:
- Low income - Junior developers are likely to be on the lower end of the income scale, so they may not be able to afford to pay much if they’re paying out of pocket.
- Company budget - However, it’s likely that their employer will pay for the course, so their price sensitivity is lower in that instance.
- Clear benefits - They know that learning SQL will help them advance in their career, so they’re more likely to see the value in the course.
- Price range: $50 - $200
Example #4: Osteoporosis prevention course
The audience are older adults who are looking to prevent osteoporosis. Here’s what you might consider about this audience when setting your price:
- Low awareness of benefits - Many older adults don’t know much about osteoporosis or how to prevent it, so they may not see the value in the course.
- High tangible benefits - However, if you can show them how much they’ll save on medical bills, they may be willing to pay more.
- High intangible benefits - They’ll also feel more confident and independent if they can prevent osteoporosis, which is worth a lot once they understand it.
- High price sensitivity - They’re likely to be price-sensitive because they’re on a fixed income and may not be used to spending money on prevention.
- Price range: $100 - $500
Example #5: Google ads course
The audience are small business owners who are looking to learn how to run Google ads. Here’s what you might consider about this audience when setting your price:
- High tangible benefits - Small business owners know that running Google ads can help them make more money, so they’re willing to pay for a course that will teach them how.
- Low intangible benefits - However, they may not feel as emotionally connected to the outcome as other audiences, so they may not be willing to pay as much.
- Price range: $100 - $1,000
Example #6: Mindfulness course
The audience are stressed-out professionals who are looking to learn mindfulness techniques. Here’s what you might consider about this audience when setting your price:
- High intangible benefits - Stressed-out professionals know that mindfulness can help them feel more relaxed and focused, so they’re willing to pay for a course that will teach them how.
- Low tangible benefits - However, they may not see the concrete benefits of mindfulness as clearly as other audiences, so they may not be willing to pay as much.
- Price range: $50 - $500
Example #7: Retirement planning course
The audience are middle-aged adults who are looking to plan for retirement. Here’s what you might consider about this audience when setting your price:
- High tangible and intangible benefits - Planning for retirement can help them save money and feel more secure, so they should be willing to pay more for a course that will help them do that.
- Low awareness of benefits - However, many middle-aged adults realize they need to plan for retirement but don’t know where to start, so they may not see the value in the course until they understand it better.
- High disposable income - They’re likely to have more disposable income than younger adults or those with young children, so they can afford to pay more if they see the value.
- Price range: $200 - $1,000
Example #8: Career advancement course
The audience are mid-career professionals who are looking to advance in their careers. Here’s what you might consider about this audience when setting your price:
- High tangible and intangible benefits - Advancing in their careers can help them make more money and feel more fulfilled, so they should be willing to pay more for a course that will help them do that.
- High awareness of benefits - Mid-career professionals know that they need to keep learning to stay competitive, so they’re more likely to see the value in the course.
- Price range: $500 - $2,000
Key point → Each audience is unique
The value of your course is unique to each audience, even if the product is the same. Your price should take into account exactly where your audience is coming from.
Summary
When setting the price for your course, you need to consider your audience's financial situation, willingness to pay, and the value they place on the outcome your course provides.
Next, we'll explore how your positioning in the market influences your price, because how you compare to alternatives will affect how much your audience is willing to pay.