July 2008 Update (Blog)

[Savage]

Use this thread to discuss the following entry from Steve Pavlina's blog:

July 2008 Update

[firefly]

That's great that Erin's business is taking off so well, though I certainly understand her feelings about the price increases. I'd feel awful knowing that the people most likely to need my services couldn't afford them.

Have the two of you thought about creating an "Erin approved" network of up-and-coming psychics who could take on more price-sensitive clients? Just have a note on the Book a Reading page: "Are these prices outside your budget? Consider a reading from one of these highly recommended professionals..."

It seems like that could be a win-win for everyone: people can get a reading from someone they trust (due to Erin's recommendation), professionals just starting out can bring in new clients, and Erin can get referral fees.

Just a thought.

[Savage]

We discussed that idea last year. I thought it was a good idea at first, but we couldn't see it working. The handful of other psychics we'd trust have prices comparable to Erin's or higher. Experienced psychics with low prices usually means they aren't very good, so they aren't generating much repeat business or referrals.

Erin's website (and mine) certainly helps fuel her bookings, but other top psychics have published books that generate a steady stream of clients for them, so they're in a similar situation.

Also Erin's focus is different from most psychic mediums. The bulk of her clients come to her for intuitive counseling. She helps people gain clarity to get their lives on the right track. Because of her skills she can help people solve problems in 30 minutes that might otherwise take weeks of therapy. She sees more demand for that vs. connecting with deceased relatives.

I don't see a referral system working, not if Erin had to vouch for the people she referred others too. It would be better for people to seek out cheaper services on their own -- or simply to do without.

Imagine if you were a doctor or a lawyer. Would you feel comfortable referring clients to someone who charged a lot less than you (and who probably was a lot less skilled/experienced)? You'd probably just send people to a general referral service rather than setting up a formal referral program that you had to attach your name to.

One psychic told me that his bookings increased this year due to the uncertainty of the economy and the election. He says that when there's a lot of uncertainty in the air, he sees an increase in bookings. Lisa Williams wrote in her book that her reading requests surged after 9/11.

[Erin Pavlina]

Someone asked John Edward something similar during one of his events, why not just refer people to another psychic since your waiting list is so long. He replied that originally he did that, referred people to other psychics but then when they got bad readings people would complain to John. He doesn't want to be responsible for the quality of a reading he didn't give himself. I wouldn't be comfortable with that either.

[Raymond Fernando]

I am very glad your business is taking off. It is a very understandable situation. I gained a lot of value from Erin's hour long podcast and the other postings on the Pavlina blogs. Keep up the good work

[Peaceflmeadow]

Its great to hear of Erin's success over the last few years.

In regards to the repeat clients and the issue with wait times versus cost, why not start reserving space for readings for 'follow up' clients, so that their wait time is less, but you can still keep the overall price flat. Sort of like physicians setting aside emergency appt slots each day, they don't cost anymore, but are essential to keep established patients happy when they have an urgent issue. A new patient would not expect to get in same day, but understands that those spots are available once established.

Personally, if I was a first time client of Erin's, I would rather wait a bit longer at the same price, then stretch it further outside my budget. This may not work long term depending on how many readings Erin does after the initial one, but it might help appease both parties right now.

Just a thought...

________
-Erin

[firefly]

Erin and Steve, thanks for the replies. I can appreciate the pitfalls of personal referrals, especially when intuitive readings aren't as cut and dried as, say, Steve's recommended PhotoReading program.

I'd been thinking along the lines of how you can set up a doctor's appointment with a nurse practitioner instead of the head physician of the practice, but now I doubt that's an applicable comparison.

Still, we can look on the bright side: all these high-paying customers are subsidizing great free content for the rest of us!

[The Wise Turtle]

For Erin, how about setting aside a portion of your appointments (perhaps half?) for clients who want to pay extra for a "membership" (or whatever you want to call it). They get one reading a month (or some other periodicity that seems appropriate, such as 6 readings a year). This way, the people who really apprecate and want to have you there for them regularly, without having to wait, can do that. The cost would be an investment to them.

And then the other portion of the appointments would be "first come first served", with a sliding scale rate, so that newcomers, curious folks, and folks who have lots of potential, but not a lot of money, could all have access to the services.

It seems to work well for a lot of different kinds of businesses, to offer that two (or more) tier format, with a level that everyone can access, and a level that offers more "ownership" for a higher price.

Peace, Love, and Bicycles,
Turil

[Erin Pavlina]

It's not a good idea to decide in advance how many readings you will need. 95% of the people I read for should be good to go with just one reading. Maybe twice a year or once a year if you can afford it. Once a month is too much for the vast majority of people. I've had a situation where I've scheduled 3 readings in a row for someone who was suicidal because I was bringing them back from a very dark place and they needed a boost. I did the other two readings for free because I was concerned.

As far as sliding scales and such, trying to determine who should pay what would be difficult. Do I ask people to send me proof of income and make a cut off for who "should" be able to afford the service? That would take up too much time and energy. Some people have higher expenses than others.

When you're seeking a service you generally seek out someone in your price range. I'm not the only psychic out there. There are a ton of great psychics.

[The Wise Turtle]

Hi Erin,

Originally Posted by Erin Pavlina

It's not a good idea to decide in advance how many readings you will need.

"Need" is very different from "want", and "willing to pay for" and "appreciate". I'd say you can probably trust people to know how many, and generally how often, they are interested in. But maybe you can't trust them. I don't know...

Originally Posted by Erin Pavlina

As far as sliding scales and such, trying to determine who should pay what would be difficult. Do I ask people to send me proof of income and make a cut off for who "should" be able to afford the service? That would take up too much time and energy. Some people have higher expenses than others.

Well, you could just trust them. Or your intuition. That's what I do. I figure if they really want/need/appreciate my service, then it doesn't matter how much they pay me, because I'm doing what I love and they will give me what they can, if I honestly help them out.

But that's how I choose to work. And my suggestions are just that, suggestions for you to consider. You might want to choose a different approach. Whatever makes you feel right, is what you should choose.

Peace, Love, and Bicycles,
Turil

[radeldudel]

Raise the prices.
Maybe Erin should make a weekly draw for one (or a few) free reading. People would have to enter each lottery anew, so only those who are really interested enter every week, make it very limited.

Still, it would give those without money a chance - and if it is important for them, their guides can probably help them to win (nothing is really random, there is no coincidence in the world).

Just my 2 cent.

Love,
Sam