Developing a pricing strategy in general might be familiar to you but having the right pricing strategy specifically for e-learning can be a new experience. The right strategy can speak volumes about your business model and can even impact how potential future or current clients view your business.
Three tips on how to price your next e-learning course
1. Price based on quality and value
Pricing should be solely based on the quality of the material and the value that it brings to your clients. Here are a few factors that can be used to get an understanding of the quality and value of the content:
- The type of software used to create the course
- The time taken to work with outside SME groups
- Amount of time and care taken to review materials
- Client testimonials
- Completion data and other course interaction data that show the quality of materials
These factors can help establish the quality of the materials and can help current or future clients understand why the course is priced at a specific price point.
2. Do not get into competitive pricing battles
The competition is just that: the competition. It might seem like a good idea to price lower or always be in the middle, but the competition should be only telling you what the market is looking to pay and perhaps what it’s interested in learning. Also, depending on the size of the competition, if it’s either larger or smaller, trying to price match or beat might be impossible. Your best option is to price based on value. Value can be proven and doesn’t shift with the market.
3. Think about the complete package being offered
Be sure that you understand the pricing model for the entire course package, which means ebooks, workbooks, consulting sessions, and anything else being offered along with your online course. All these items should be included in the pricing model.
Importance of having an income goal
Education is highly valuable. Corporations are willing to spend significant amounts of money on educating their employees. Having a defined income goal can help you determine the overall pricing model for your courses. Income goals should be SMART:
- Specific. Specify what you want to achieve. Make sure you include numbers, dates, and anything else that will help clarify your goal.
- Measurable. Your goals should be measurable. You need to know if you have or haven’t reached the goal.
- Actionable. Your goals should be realistic and attainable.
- Relevant. Your goals must relate to your business and be applicable to the scale of your business. There is nothing wrong with creating stretch goals, but every real goal is always SMART.
- Time-based. Your goals need a deadline. Looking over what makes a goal SMART also means selecting an attainable date.
Why Pricing Matters
Value-based decisions let your customers know that you value your business and their time. It might seem that lower pricing will attract more clients, and in some cases, it might, but will they be high-value clients?
A high-value client is one that will purchase more courses. They will provide you with quality critical feedback and testimonials. High-value clients also understand that pricing matters, so they will pay for quality materials that can be backed up by quality data.
Having the right e-learning pricing strategy is key to your online training business success. The way to create your pricing model is to:
- Know the value of your training material. It’s not based on the factors that it takes to create the course, but rather on the value that the material provides your clients.
- Have a SMART income goal.
These two things will assist you in creating your winning pricing strategy.
If this topic is of interest to you, check out the following to learn more about how the right LMS vendor can also be a critical part of your overall pricing strategy:
- How to Use a Multi-tenant LMS to Grow Your Training Business
- The Importance of Scalable Training Delivery
Here at Firmwater, we don’t just sell an LMS for training providers. We partner with our clients, giving them the tools and insights they need to implement the best practices in e-learning course development, growth, and delivery. We care too much about our customers’ businesses to have them wade through forums and chatbots for help.
Ready to use an LMS that’s designed for the way YOU work, with a team dedicated to YOUR needs? Book a no-obligation consultation directly with our team today!