Debate on Price Points- What do you think about Perceived Value? Best Price to Charge?
A friend and I always have this debate. She says that under pricing gets more sales, because people have to pay less. Often she goes for less than $10 no matter what the subject of the report is. I think they are packed with good information, tips, ideas, that the average IM'er doesn't consider. She has a business past, and thinks these are her loss leaders. I only somewhat agree.
I think she is highly underestimating her value. If she charged more, she would get more sales, because the lower price brings down the perceived value. The thought that oh, it can't be any good, they barely want to charge for it.
For me perceived value means that if you charged more, maybe 17 or 27 for these reports (easily worth it). You get better clients (people who appreciate your value), and you make more. Possibly fewer sales, but it's suppose to be easier to sell a $100 product to 10 than it is to sell a $50 product to 20.
I want to know. What do warriors think? Will you make more if the price is lower, or if the price is higher and fewer sales? This is all assuming the product is very good.
I think she is highly underestimating her value. If she charged more, she would get more sales, because the lower price brings down the perceived value. The thought that oh, it can't be any good, they barely want to charge for it.
For me perceived value means that if you charged more, maybe 17 or 27 for these reports (easily worth it). You get better clients (people who appreciate your value), and you make more. Possibly fewer sales, but it's suppose to be easier to sell a $100 product to 10 than it is to sell a $50 product to 20.
I want to know. What do warriors think? Will you make more if the price is lower, or if the price is higher and fewer sales? This is all assuming the product is very good.
-Jason