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Is a supported tiered pricing model the right option for your coaching business?
Episode 96th May 2024 • The Pricing Lady • Janene Liston
00:00:00 00:28:31

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Welcome to Live With The Pricing Lady.

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I'm Janene, your hostess.

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This show is all about helping you build a sustainably profitable

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business while making an unbelievable impact on your world.

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Learn from my 20 years of experience and from my guests as we discuss their pricing

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challenges, failures, and successes.

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Pricing is a way of being or behaving in your business.

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My mission is to help you confidently charge for the value you deliver.

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Pricing is either hurting or helping your business.

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Let's make sure it's helping you reach your dreams.

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Hello everyone, welcome, and also welcome to today's guest, Avery Thatcher.

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Hi Avery.

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Hello, I'm so excited to be here.

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I'm really happy to have you here today.

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I'm excited about our conversation.

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So, Avery, why don't we start with a few questions.

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And the first one is, where are you joining us from today?

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I am joining you from Calgary, Alberta, Canada.

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And it's still winter here, but I'm loving it.

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We were just talking about the weather before we got on

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the, got on the call here.

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And, uh, so winter is,

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how cold is it there now?

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Well, today is a warmer day cause we get things that are called Chinook.

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So like warm gusts of weather coming off the mountains.

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Um, but it's supposed to snow another 20 to 30 centimeters in a couple of days.

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So.

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Oh, wow.

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Amazing.

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Beautiful.

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Yeah, I was just sharing with Avery that we're expecting like 27 degrees

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over the weekend, Celsius that is.

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So it's going to get quite warm for a couple days over here.

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Cool.

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Excellent.

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Well, thank you for joining us and getting up bright and early this morning.

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Avery, what would you describe as your superpower?

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My superpower is to be able to see to the heart of a situation.

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So someone can say, Oh, I've got this and this and this and this on my plate.

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I'll be like, How about this?

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And they're like, Oh yeah, that's what I need to talk about.

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So yeah, I feel like that's my superpower.

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That's an excellent superpower to have.

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Yeah.

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I mean, especially in this day and age when we try to

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do, often try to do too much.

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Um, it's, it's a real.

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asset to be able to see through that fray and get to the heart of the problem.

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Super.

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What's one interesting thing that most people don't know about you

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that you'd like to share with us?

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So one of the things that I think surprised a lot of people is

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that I actually changed my first name a couple years ago, because

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I did not feel like Heather.

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And so much had changed in my life, literally overnight, and I felt like

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I needed to grieve her and let her go.

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So I became Avery.

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And I felt at home in my body again.

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It was totally worth it.

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Okay.

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That's really interesting.

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Maybe we'll hear more about that in the intro as well, because

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it's tied to the business day.

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Okay.

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Actually, that's really cool.

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So why don't we get into this?

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And I'm curious about what inspired you to start your business and how did

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you, how'd you go about doing that?

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Yeah, sure.

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So I was working as a registered nurse in various intensive

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care units across Canada.

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And I noticed really early on that the number one reason why adults

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found themselves in the ICU were because of illnesses and diseases that

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could be linked to chronic stress.

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So in 2015, I started building my business talking about stress management.

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And I was talking about all of those things that have tons of research

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behind them, the mindfulness, the yoga, the journaling, um, Uh, Breathwork.

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All of the things that had a lot of benefit for stress.

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And then in 2018, I experienced a very epic burnout that has left me with

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a chronic illness and a disability.

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And I was so frustrated because I felt like I was doing everything

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"right", but I still burnt out.

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So then I went back into the research because I'm a super nerd and just loved

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everything which I was reading and I found the missing pieces of the puzzle.

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So now instead of just focusing on stress, we focus on burnout.

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And it's really interesting because a lot of people think that burnout is

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a stress management issue, but it's actually an energy management issue.

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So when we look at it through that lens, it changes everything.

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So yeah, that's kind of my journey of where I came from and how I got here.

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Oh wow, that's fascinating.

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So when you, when you made that shift from being a nurse to

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starting your own business, what was that transition like for you?

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It was rough.

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The learning curve was like, because I would show up at my patient's

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bedside and they were there.

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I did not have to do anything to market or bring them in or tell

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them that you should trust me.

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I just showed up and they're just like, great.

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So learning how to run a business, how to market, how to talk about

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myself in a way that didn't feel icky.

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All of those things were huge learning curves.

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And then I also found that a lot of What was taught online was very much

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from a B2B model, so like a business to business, not so much a business to

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consumer, and so the pricing, for one, was not a good fit for the audience that I'm

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working with, and a lot of the marketing strategies also were not a good fit, so

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I really had to bring things back to my roots as a nurse and look at how I can

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incorporate some of the medical models, like the trans theoretical model of

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change, into things like messaging and social media, because, yeah, social media

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was also a foreign landscape for me.

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I didn't have a single account on any platform, and I was just like, oh, shoot.

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And I did not understand hashtags at the time.

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It was rough, but yeah.

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Now, sometimes I feel like I still don't, right.

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Okay.

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That's really interesting.

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And what was it like for you the first time that you sat down and had

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to set a price for your first offer?

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So, I was actually working with a coach at the time.

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And so they had to help me decide the price of it.

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And it was, I think it was 1, 400, something in that sort

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of range, 1, 400, 1, 500.

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And I was really uncomfortable saying that value out loud.

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And so they actually had me walk around my house and say,

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1, 500 bananas, 1, 500 pots.

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And just so I could get used to saying that word.

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And then I remember the first time I was on a sales call with

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it, I was like, it's 1, 500.

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It was so uncomfortable.

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And I just realized at that moment that, even though that was a good price for

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some B2B marketing, for sure, When I look at the amount of time that you'd

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get spending face to face with me and how much I would have charged as a

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private practice registered nurse, or how much you'd pay a psychologist with

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their PhD, that I want to be more in alignment with that kind of pricing.

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And so that's where things kind of settled in for me.

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And so that was a kind of coaching package or

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Yeah, yeah, it was a Six session, 12 week coaching package.

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Okay.

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Super interesting.

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You know, I, of course, as I go about my business and meet new people, sometimes

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I, you know, we get into conversations, of course, about pricing and I'll ask

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them, you know, what do you charge?

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And a lot of times, especially more often from women, let's say

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than, than from men, but I'll, you know, they'll answer with a, 1500?

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You know, like, you're asking me the question, Yes.

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And I always find it very interesting that, you know, the communication

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around pricing because that little intonation is so telling.

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Um, and, you know, of course any I, I recognize it in a different way that,

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you know, a normal customer might, but a normal customer also recognizes

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and feels that insecurity, they just may not be able to identify it in

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the same way that, you know, someone, someone like me can, who kind of

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looks out for those kinds of things.

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Absolutely.

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And that's where I feel like.

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Absolutely, you need to charge what you're worth and own what you're charging, but

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you also have to feel comfortable with it and not feel like you're undercharging.

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I definitely did that for a little while.

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But then I started to resent all of the sessions that I was doing

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because I didn't feel like my value was being compensated for.

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So, it's really when I kept experimenting and found the sweet spot, then on sales

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calls, literally have no problem saying what I charge because it just fits.

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It just fit.

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So why don't you tell us a little bit more about that experimenting that you did?

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Because I think that's really important.

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A lot of people feel pressure when it comes to their pricing because they

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think they have to get it right now.

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Yes.

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so one of the most important things I think any entrepreneur can do,

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especially when it comes to their pricing is embrace curiosity.

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So you go through your launch process of an offer or you go through sales calls.

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And again, I've already admitted that I'm a super nerd, so you don't

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have to do it to the degree that I do it, but I always look at some of

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those metrics and just track things to see what's working, what's not.

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I do market research to see, what's there?

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And of course you don't want to be the like, big box store that sells

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everything at a discount you want to be that specialist, but yeah, it's

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just really embracing that curiosity.

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Every launch, whether it brought in someone or no one.

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I always went back to see okay, so what was it about this?

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Could I interview some people in a focus group after and offer them a free session?

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Just to be able to get more info.

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when you don't take it personally, and when you decide, okay, I'll

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get there eventually, I just need to find the sweet spot, then it

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just changes the journey, really.

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Like you're now open to continuing and seeing what happens.

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Right, right.

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I like that.

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I like that a lot.

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Let me look, I had some other things that I wanted to talk to you.

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So one of the things that you, you shared with me was that you moved to a tier

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pricing, tiered pricing system, let's say.

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What was it you were doing before and what prompted that shift to tiered pricing?

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So, I think like most people, before I was doing like a singular price for my

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offers, and I had a number of emails from people saying, I really want to do this,

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I'm super invested, I can't afford that.

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And I'm not the kind of person that's like, you should go into debt for it.

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I just don't feel like that creates a space of safety, and

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that obviously creates a lot of stress, so it's not what I'm about.

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So I started to evaluate and just look, and especially when I became disabled,

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the perspective just shifted, and that there are some communities that are

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disadvantaged and oppressed, and there's just no other way to look at it right now.

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That's just a fact.

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So by going to the tiered model, I offer " a choose your own

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adventure" kind of pricing.

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I give three different options.

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They're all within a similar range and they're all prices that I'm comfortable

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charging, but then people can choose a price that fits within their budget.

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Since I did that, sales went way up, even for the middle tier pricing, which

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is what we want most people to go into.

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So it just really works super well across the board.

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It's been received super well.

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so well, and it allows me to really work with the communities that experience

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the greatest amount of stress and the greatest amount of burnout.

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So, even though, on paper, it seems strange to be like, choose your own

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pricing adventure, and everyone's just gonna choose the lowest one?

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Most people don't.

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Most people go for the middle, and I actually get a number of people

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in the higher one, because they know that they can, and they want to be

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able to support people that can't.

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So it actually is just this really beautiful makes you believe in humanity

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again kind of Very interesting.

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Yeah, I mean, it's true from a psychology perspective, not always, but usually

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people tend to go with the middle price.

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It's one way to, let's say, position things, and make it that attractive.

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But I think what's really lovely about it is that it, it gives people

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who really can't, or don't have the means currently, it gives them the

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opportunity to still participate.

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And I think that that's, that's amazing.

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Yeah.

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I really like it.

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And I think one of the important pieces, just to clarify here,

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is that no matter what price you pay, you get the exact same thing.

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It's not like, if you pay more, you get this extra bonus of something.

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It's like, no, everybody's the same.

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Right.

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Right.

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Which also, I think it is a really important because it fosters a different

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spirit within the context of the program.

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You know, people don't feel left out, um, as they may in, in other types.

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I mean, there's, there's strategies that go in the other direction as well.

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And no, they work in some instances, you know, some markets

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they work very effectively.

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, Especially for you.

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I hear from a lot of therapists that they struggle with, when their own challenges

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into mentally and, you know, not being able to serve everyone, let's say.

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And then often also sometimes feedback from people.

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Well, you know, you shouldn't, you know, charge so much because,

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because I can't afford it.

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Right.

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And I don't necessarily agree with that criticism, but I understand

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from a therapist point of view, how hard it can be to sometimes hear

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that, and how it can play with, your mindset, your emotions around pricing.

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Absolutely.

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And so that's why I built the app that I have because I know that not everybody

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can afford to work with me one on one and I know that I'm not willing to decrease

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that price because when I do that then I start to feel resentful and they

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don't deserve me showing up that way.

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So the app itself allows for similar kinds of supports, but

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just with No face to face time.

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And it just, again, still allows me to feel like I can help more people

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because also I'm only one person.

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So bringing people into an app allows me to help more, but also it just,

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yeah, it gives option to people.

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Right.

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So the tiered offering is like for your group program, which I'm

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guessing is online and partially live.

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Is that, is that correct?

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Uh, yes.

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And it's also for the app.

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So in the app there's the tiered option.

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Okay.

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So

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I was curious if you do that for just specific parts of what you offer, if you

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do that for, quote unquote everything.

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Uh, so everything except for the one on one.

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That being said, I do offer scholarship options for the one on one, which it

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comes out as a pay what you can, and if you can't pay anything at all, I don't

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know, because somebody else manages that.

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And so it's, uh, still an option, but, yeah, it just, again, allows

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people that are really committed to what they want to work on to

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still get the help that they need.

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I mean, yeah, it's beautiful.

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Love it.

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Absolutely love it.

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So I'm curious, I'm looking again at my notes here.

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Yes.

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What's the biggest challenge that you found when it came

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to pricing in your business?

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Um, being patient, because I knew that what I had was good and I had

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tested it with some people and I knew that it was good, but it was

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just finding the right messaging, the right sticker to put on that and

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combining that with the right price.

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Because when you price things too low, as I'm sure you talk about here a lot, People

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join and they don't really commit to it because they haven't put enough into it.

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But when you price things too high, then again, you like marginalize some

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people and really keep some people out.

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Or even the people that can afford it need it, but they're like, oh no, they just

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don't see the equation of value there.

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So yeah, I think it's really just being patient enough to keep being

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curious and just to keep being like, okay, When's next time?

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What are we going to do next time?

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And even though we've had this now successful app, and then all of my

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programs and group coaching and one, one on one coaching, we still treat

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every launch as if it was the same.

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Cause we still like, okay, so here is our new baseline.

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Where are we going from here?

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How can we tweak it from here?

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So it's really just totally embracing that curiosity.

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It's the way to go.

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Yeah, yeah, I love it.

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Now, one thing that you've also shared with me is that you really rely on,

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on data, but also understanding the importance of understanding customers.

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I'd really like to hear what you have to say about that, because I think

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that that's a really important message.

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Yes.

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So, um, I think also one of the things that I learned in the steep learning curve

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of transitioning from a registered nurse into a business owner was that it's really

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important to make sure that your offers are meeting your clients where they're at.

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And so the app itself is kind of an introductory offer.

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It helps people when they're kind of, Preparing to make those bigger changes,

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but they're not quite there yet.

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They still need to trust you, they need to trust in themselves.

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It's about slowly building that trust over time, and also making

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sure that you're marketing to those people in the right space.

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So one of the clearest examples of this, I'm not a health

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coach, so I don't do this.

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But if somebody was marketing as a weight loss coach, and they're just

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like, all you need is more self love.

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And we all know that that's what you need.

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need, but people just want to lose 20 pounds.

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So making sure that you're giving people the right resources at the

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right time that create the gap.

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So that way they realize that the pile that they're standing in is not

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something that they want to stay in.

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So when we look at marketing, you want to think of it in those tiers

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and also with your offers can meet people in those tiers as well.

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Oh, that's brilliant.

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Yeah.

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I mean, to me, you know, a lot of people come to me.

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I was just talking to this young lady yesterday and she's like,

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I think there's just no need.

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And I'm like, well, is there really, you know, cause when I looked at, you know,

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what they were doing, um, they, you know, cast a really wide net to get to everyone.

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And my first instinct was, I can see that this wide net that they've cast in the

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way the copy is written and the way that they've done things, but I can imagine,

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you know, as a customer, that that feels like How do you connect with that?

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There's too much information there.

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There's too many bullet points and it's hard to really see, you know,

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how something that's, you know, like a one size fits all t shirt,

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metaphorically speaking, right, can really attract customers.

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Definitely.

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And I think.

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Like, again, if you're thinking about more what they need versus what they want,

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then that really widens your net because, sure, you could help everybody if you're

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a health coach that helps people with self love, but really narrowing down first to

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that introductory offer that helps people as they're preparing to realize that they

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need more self love, like, I think that's just, because when we think of niching,

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I think a lot of us get scared because we're just like, oh, but I could help so

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many more people if I don't niche, but.

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Really, the more That you just really target in on that first niche topic.

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That allows you then to start bringing business that way.

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And once you got all those funnels set up, because you still have your main

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higher level offer that multiple people can benefit from picking a new niche to

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start marketing to with new channels and still bring them through because they can

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all come in through to that top offer.

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So picking a niche does not.

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really limit you.

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It's just your first point of focus.

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It's, I was gonna say, it's like, it's like, , binoculars.

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It's just like bringing the target into the focus.

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Right.

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And it doesn't mean that there aren't going to be other people who are

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interested in what you do, or, you know, or who see the value in it.

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It just means that you can actually align things in your business much better.

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From sales to marketing to pricing to whatever, you know, it is that you

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need, you can align it much better if you're focused on one at a time.

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Absolutely.

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And I actually have a really clear example of how niching doesn't eliminate anybody

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because I was doing an entrepreneur mentorship thing for a couple of years

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and I really enjoyed it, but it was also just taking away from the burnout thing.

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So I decided to close that arm of my business down.

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But before I did, And when I first started marketing, I decided that I only

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wanted to work with women, and I only wanted to work with people that were

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in the mental health or physical health space, because I knew that space really

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well and how to market to that space.

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So I had flowers and pink on everything because I was just

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like, girls only, please.

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And I had probably 40 percent men reaching out because they liked what I was saying.

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And I was just like, So I had to change all of the marketing because I

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realized that working with men was not the worst and they were drawn to how I

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was teaching, so I needed to make sure that that was still inclusive to them.

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But even though I was going super hard into the women in business side,

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men still were very drawn to it.

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Yeah,

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it shows the power of the message that you were that you were sitting out there.

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It overcame the branding.

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It overcame the pink fluffy flowers.

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Yes.

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I am not a pink girl.

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So it was well,

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which is also, you know, it's funny how you think you have to do things

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to just match your customers.

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But I think it's also important to, you know, take your own

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values and sense of things.

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I know when I started my business, because, you know,

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most people, when they I think.

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Pricing consultants or consultants in general, they think of very buttoned

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up people and navy blue suits and okay, got the spectacles and the

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gray hair, but you know, there's a certain, you know, demeanor to them.

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And I'm a little bit more Let's say casual and a little bit more like when I talk

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about this topic, which can be a very serious topic, I try to bring it to people

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at the level that they are and in a way that makes it more interesting and fun.

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And I felt really nervous about, about doing that.

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Yeah, fair.

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But it's your approachability, Janene.

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That approachability drives people.

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That's the exact word.

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The lady who I worked with on the branding, she told me I

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wasn't allowed to use the word.

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Fun.

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And Approachability was the word that we came up with instead.

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Absolutely.

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So brilliant.

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So Avery, what is next for you?

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What is next for becoming Avery or your Creating Calm app?

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Yeah.

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So this year we're really digging into corporate speaking because

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burnout is prevalent everywhere.

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So I've done a couple already this year, just with corporate speaking.

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Both the leadership team and the team, so we're really branching out

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into that and then also licensing the app to corporations that want

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to expand their benefit package.

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So again, learning curve, it's rough, but, it's been a really fun journey and I am

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so grateful to have a team behind me to help support me because otherwise I would

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be running around with, like, a chicken.

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Like, blah!

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Yeah.

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Yeah.

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Yeah.

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But that's, I mean, us holding on to the integrity of, you know, behind what you do

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and the values in your business as well.

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Right.

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So you don't want to end up back where you were in the past burnout.

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So it's important to manage that going forward.

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Absolutely.

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So why don't we start wrapping this up?

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What's one thing you'd like people to remember from our conversation today?

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That the most important skill you can develop is to be curious, because when

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we start to take it personally or think it's about us, then it makes it so

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much harder to continue moving forward.

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So, curiosity.

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Yes.

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Curiosity is the way forward.

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I love that.

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Thank you.

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Is there a book or a tool that you'd like to share with the entrepreneurs

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who are listening as well?

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today that have helped them.

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Yes.

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So my favorite business book is called Storyworthy and it's by Matthew Dix.

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And a friend of mine, also from Your Corner of The World, sent it to me and

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it is That's the most clear way to how to break down a really impactful story.

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So from all business owners, we need to learn how to tell our story

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and other stories really well.

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Fantastic book.

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Highly recommend.

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Okay.

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It's one I haven't read.

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I'll have to check it out.

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Excellent.

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And the last question.

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Where can people reach out if they are curious to find out

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more about working with you?

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I would recommend you go to my website, BecomingAvery.

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com.

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There are Buckets of free resources there, including a quiz for how to discover

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your self sabotage style and then what to do with it once you know what it is.

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So you can definitely go and check out all of the things there.

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Okay, cool.

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I'll have to check that out as well.

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So we'll put that in the show notes as well as, Avery's links on social media

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so that you can reach out to her as well.

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Avery, thank you so much for joining me on the show today.

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I really enjoyed our conversation.

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And I think we, we talked about some things that are really

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important and going to help people out there who are listening to us.

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Oh, I'm really glad.

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Yes.

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I really enjoyed this conversation as well.

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Super.

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And to all of those of you who are out there listening, thank

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you so much for joining us today.

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If you have any questions, reach out and book a call with

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me until next time, everyone.

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I wish you a great day and as always enjoy pricing.

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Thank you for listening to this episode of Live with The Pricing Lady, the podcast.

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If you enjoyed the episode, rate, review, and subscribe to it, then share

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it with your friends and colleagues.

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I love hearing back from you listeners.

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If you've got comments, questions, or topic ideas, go on over to thepricinglady.

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com and contact me there.

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Not sure where to start when it comes to improving pricing and profits?

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At ThePricingLady.

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com you can download a copy of my Self Assessment Pricing Scorecard.

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Find out where it's going well and where you can begin improving.

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Or just simply book a discovery call with me.

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There we can discuss what's up with pricing in your business and

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how I might be able to help you.

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Thanks once again for joining.

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Remember, pricing can hurt or help your business.

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Let's make sure it's helping you reach your dreams.

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See you next time and as always, enjoy pricing.

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