A good e-learning pricing strategy can be applied to individuals (B2C) and organizations (B2B). In this blog post, we have a quick discussion on common pricing mistakes, introduce you to the volume-based pricing strategy, and go over how to determine the right price point. Let’s dive into a few common mistakes when it comes to pricing strategies.
Mistake #1: Setting the price and forgetting the content
Depending on the type of content, e-learning can be evergreen. Therefore, it can be easy to price something at one point and then never go back and reevaluate the price. It can also be easy to not reevaluate the content. The takeaway here is to make sure your content and its cost are regularly being reviewed.
Mistake #2: Charging based on the wrong criteria
When you charge based on value, you set your prices based on the worth that your clients get from the training content. But one thing to consider when doing this is the complexity of e-learning.
Let’s break down this concept into three categories, using Bloom’s Taxonomy:
- The learner passively moves through the course, clicking next and having limited interactivity.
- Courses at this level require the learner to analyze the information.
- Courses can include audio, dynamic visuals, and higher-level interactivity.
- These courses are at the highest level and enable the user to create.
- Courses can include branching and gamification, which will enable the learner to practice and provide them with a fully immersed learning experience.
Ultimately, ensure that you are pricing your courses in the right value-based category. As your courses move up the ladder, they will bring another level of value to the client. Do note that it does not matter if the client is an individual or an organization; the course offers the same value.
Mistake #3: Offering unnecessary discounts
The value of the content will always be the same, so when looking to offer discounts, consider doing volume-based ones. These aren’t based on the size of the client, but rather on how valuable the client is to you.
How to create a volume-based pricing strategy
A volume-based pricing strategy involves receiving a discount for buying multiple of the same items for a discounted price (for example, five objects for $35). This is different from a quantity pricing strategy, which is to buy one and get one for free.
With a volume-based strategy, the customer must purchase a larger quantity to see the savings. This can be helpful because it enables you as a training provider to offer one price for individuals and organizations alike.
Since B2B consumers might have a larger volume of users, this pricing strategy enables you to offer them a discount depending on how invested they are in your company.
Individuals make their own pricing decisions. Organizations have purchasing managers and procurement departments. Since the sales cycle can be long, make sure the place where you sell your content can support your pricing strategy.
Ecommerce sites like Shopify provide robust options for managing an online store, taking payments, and managing products. Shopify allows for integration with learning management systems, and training providers can use it to sell course bundles. An example of the latter includes being able to sell seats for a course; the price for the seats can be set at one price, but as clients buy more seats, the price is adjusted based on volume. Another example of course bundles is selling multiple micro-learnings to clients. Both of these can be done through Shopify.
How to determine the right price point
When creating the price point, there are three factors to think through. Note that none of them rely on the client:
- Determine the value of the training material.
- How much of an investment has gone into creating the content? More value placed into the creation increases the value of the content for the client.
- Consider market size. Who are the customers? Are they looking for content being created?
When these three things are aligned, your pricing strategies will be based on value: the value that you bring to the client and the value that your business partners offer you.
When it comes to e-learning pricing strategies, you don’t need one based on the size of the client. Instead, look at the value of the material, the volume size of the client, and the value that you have placed in the material. Make sure your business partners support your business model and your pricing strategy.
Continue to learn how to grow your e-learning business:
- A Delivery Platform for Selling Online Training Courses
- How to Sell Corporate Training Programs
- 4 Critical LMS Factors That Affect How You Price Courses
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!