Interview with Tom Buford
Pricing Consultant & Author
Interview Summary
Pricing expert Tom Buford joins Abe Crystal to discuss the psychology of pricing online courses. Tom shares his framework for determining the right price point and reveals why most course creators undercharge—and what to do about it.
Value-Based Pricing Wins
Tom's core principle: price based on the transformation you provide, not the hours of content you've created. This is a fundamental mindset shift that changes everything about how you approach pricing.
Many course creators calculate their price based on time invested or content volume. But students don't buy hours—they buy outcomes. What transformation are you providing, and what is that worth?
Price based on the transformation you provide, not the hours of content you've created. Students don't buy hours—they buy outcomes.
Price Signals Quality
Here's counterintuitive pricing psychology: a higher price can actually increase perceived value and student commitment. Low prices signal low value, and students who pay little invest little effort.
This isn't about being greedy—it's about understanding how price affects student behavior. Students who make a significant investment show up differently than those who grabbed a cheap deal.
A higher price can actually increase perceived value and student commitment. Students who pay little invest little effort.
Test with Confidence
Tom's practical advice: start with a price you're comfortable with, then test increases. You can always offer discounts later, but it's very hard to raise prices after you've anchored low.
This approach removes the pressure of finding the "perfect" price immediately. Price is something you can iterate on, just like course content.
Start with a price you're comfortable with, then test increases. You can always offer discounts—but it's very hard to raise prices after you've anchored low.
Payment Plans Expand Access
One of Tom's key tactics: offering installment payments can significantly increase conversions without lowering your overall price. A $997 course becomes accessible at $97/month for 12 months.
This isn't about making your course "cheap"—the total price is actually higher. It's about removing the cash-flow barrier that stops people from investing in themselves.
Offering payment plans can significantly increase conversions without lowering your price. A $997 course becomes accessible at $97/month.
Avoid the Race to the Bottom
Tom is emphatic: competing on price is a losing strategy. There will always be someone willing to charge less. Compete on results instead.
When you race to the bottom on price, you attract price-sensitive customers who are least likely to do the work and most likely to complain. Premium pricing attracts premium students who are committed to transformation.
Tom's Action Steps
Tom recommends these 3 steps to improve your course planning:
Define the transformation value
What is the outcome of your course worth to students? Not in content hours, but in life impact. Price from that value.
Add a payment plan option
If you only offer a single price, add a payment plan that makes the same value accessible to people with cash-flow constraints.
Test a price increase
Raise your price by 20-30% for your next launch. Track conversions and student quality. You may be surprised.
About Tom Buford
Pricing Consultant & Author
Tom Buford is a pricing consultant who has helped over 500 course creators optimize their pricing strategy. He's the author of 'Price with Purpose' and hosts the Revenue Growth podcast.