How do you determine a product's price?

8 replies
I've been reading this forum for a while now and I've seen all kinds of products and services being sold for varying prices. How do you know how much to charge for your product?
#determine #price #product
  • Profile picture of the author awmi
    If I can find it on eBay I check to see what others are paying for it.

    If it's unique then a thorough product research is in order.
    {{ DiscussionBoard.errors[2073661].message }}
  • Profile picture of the author moniez
    I don't determine the price, the consumer does. In other words, I will set up a few sales pages with varying prices and split test them. Whatever converts the best, well, that's the price.

    With that being said, look at other products in your niche and base your starting price on theirs, or something close to it. You can't go wrong, really, but make sure to test out different price points.

    P.S. Don't always assume that a lower price will convert better. Just the opposite can be true, as the perceived value is higher.
    {{ DiscussionBoard.errors[2073667].message }}
    • Profile picture of the author ChrisHeggem
      Originally Posted by moniez View Post

      P.S. Don't always assume that a lower price will convert better. Just the opposite can be true, as the perceived value is higher.
      I completely agree.

      What would you say is the largest contributing factor towards converting buyers outside of price?
      {{ DiscussionBoard.errors[2073680].message }}
      • Profile picture of the author moniez
        Originally Posted by ChrisHeggem View Post

        I completely agree.

        What would you say is the largest contributing factor towards converting buyers outside of price?

        Solving their problem. What do you have that can help them? If you can't solve their problem, then why would they buy from you?

        And, of course, articulating how you can solve their problem in your sales copy is of paramount important.
        {{ DiscussionBoard.errors[2073686].message }}
        • Profile picture of the author ChrisHeggem
          Originally Posted by moniez View Post

          Solving their problem. What do you have that can help them? If you can't solve their problem, then why would they buy from you?
          I agree that people won't buy if it doesn't fill a need, but people are often only so willing to spend money to fill certain needs.
          {{ DiscussionBoard.errors[2073700].message }}
  • Profile picture of the author MalloryMedia
    Use a balance between your experience/ how well you are known in the marketplace, and what you feel the product is worth. You can sell ebooks from $1 to $99. Video and audio products can command much more. If you're not a top level guru, don't try to charge $2k, but otherwise, don't under-price yourself just because you're not that well known.
    {{ DiscussionBoard.errors[2073671].message }}
  • Profile picture of the author CurtisN
    Charge an amount that would shock your ideal prospect. In other words, make it a no-brainer for the value you're offering.

    Of course, you'd need to test to find the best price point for any product.
    Signature
    Curtis Ng (blog) - Product Launch Manager
    {{ DiscussionBoard.errors[2073701].message }}
  • Profile picture of the author Chris Worner
    I would do some competition research and calculate the average price then come up with ideas on how I can increase my products perceived value and charge more.


    Chris
    Signature

    {{ DiscussionBoard.errors[2074115].message }}

Trending Topics