Determining the price of a product

4 replies
If you were to create a product, lets say a software or course of any sort... what factors do you take to determine the price tag on it?

Regards
#determining #price #product
  • Profile picture of the author bsummers
    This is a rough sketch, but at least you have something to work on:

    You can determine the cost of your product by first adding up all the cost incurred in developing, creating, and marketing this product. After that, try dividing the cost to your estimated number of buyers. You will now have a tentative idea on how much your product costs. From there, you can add what you believe is the additional amount to give you a profit.
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  • Profile picture of the author Mark .W. James
    "try dividing the cost to your estimated number of buyers"

    that part.... isn't the price going to play a major part in determining that?
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  • Profile picture of the author Curtis2011
    Originally Posted by Mark .W. James View Post

    If you were to create a product, lets say a software or course of any sort... what factors do you take to determine the price tag on it?

    Regards
    If I was investing a lot of time and effort into it, I would set up a split testing system to split the traffic and test at different price points.

    That way, you don't have to settle for your best guess at what price converts best. You can know based on real data.
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  • Profile picture of the author ricox
    def the cost of the development then the cost for marketing and advertising
    then calculate at what price you need to sell to break even with x buyers per day
    then you can see how long it will take just to break even
    then add some to the price for profit
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