Are You Pricing for Value—or Racing to the Bottom?
This morning I was listening to Alex Hormozi talk about pricing, and it hit me hard—because I hear this so often in martial arts and dance circles:
“We’re the most affordable school in town!”
“We charge less than anyone else!”
Like it’s a badge of honour.
But here’s the problem…
There are four pricing bands people fall into:
💰 Too Expensive – “I can’t even consider this.” 🚫
💸 Big Investment – “This is a stretch, but worth it.” ✅
🔥 Great Deal – “This is valuable, and I believe in it.” 💯
⚠️ Too Cheap to Be Real – “This sounds sketchy.” 🚨
And a lot of business owners sit in that last one—where being “affordable” actually makes people doubt your quality.
Hearing Hormozi break this down reinforced what I’ve been seeing for years:
If you compete on price, you lose. You are in a race to the bottom.
The best schools charge based on the value they bring, they do not want to be the “cheapest in town.”
This is a question I ask EFC members a lot when we talk about membership fees......Are you pricing for value or racing to the bottom?
And the followup.....Do you think being the cheapest actually attracts better students, or does it just bring in people who don’t value what you offer? 🤔👇
This week I invite you to consider where your fees sit in the Pricing Band and if that is the best space for you.
Have an amazing week changing lives.
Regards,
Danielle Drew
Managing Director
EFC Asia Pacific
Renshi: 4th Degree Kempo Black Belt