People like to buy expensive stuff

That is true for all products.

The trick is to find out how much is too little and how much is too much, and then to figure out which price in the middle sells at a higher conversion ratio.

I've had the same experience. My current strategy is to kick up the price on my products every time I improve them until they stop selling, then with the next improvement I drop the price back to the last one where it sold. Basically, I just made the product worth more, the price should go up - right? Simple theory.

You get what you pay for. That's what people say, isn't it?

It's called PREMIUM. Some people like to pay more, as
they perceive they are getting better quality.

Kingsley

If you are the seller, test all prices.

If you are the buyer, wait till the price is good.

I can only buy expensive product if it's worth the price and I don't have any other option.

There's more to price than demand and supply.

In capitalism you don't charge what things are worth, you charge what people are prepared to pay - that's a very important distinction, it's all about perceived value.
That was a lesson I learned many years ago at a school work experience placement when the owner of the shower door company I was placed with told me conspiratorially, "You know, this stuff's basically crap, but rich types buy it because it's expensive."
Now, I would NEVER refer to any product of mine as "crap" (if you have never heard of one Gerald Ratner now is the time to Google on him and get a VERY sobering lesson about that), but the principle is a vitally important one.

Can you give us some examples such as the product type, the amount and quantity people are buying and at white price?

Well, that's another message I did NOT take on board - that my customers are stupid.

I believe perceived value has to be backed up by ACTUAL value too.

Yea, I notice people would totally underestimate Clickbank products that are for 37$ but happily pay for those 97$ products even though the two products can be equally bull****

Amazingly I just Googled for the M**** Shower Company and they still exist, 20 years later. So I don't know what to take from that - either we needn't care about repeat business (there's a rich idiot born every minute), rich people really ARE mostly stupid or maybe those shower doors really weren't that bad

I used to be in the antique business and it can be pretty hard to price stuff because most of the items are one of a kind or unique in some way.

One of my antique dealer friends had this really neat old wooden box probably from the mid 1800's and he priced it at $45 because he didn't pay much for it.

That thing sat in his shop for a year. Then one day, he priced it at $250.

It sold the next day.

As a Clickbank affiliate, I find it much easier to promote and sell $97+ products than $37 products. Collectively, they convert my traffic better.

Apart from the general words of wisdom above about perceived value, with which I broadly agree, I think I can also identify some specific reasons for this ...

(i) We're in a pretty "bad economy" and that's a reason to sell more expensive things, because one needs recession-proof customers to get anywhere worth talking about, and if you can attract recession-proof customers you may as well sell them more expensive/profitable items;

(ii) The $97+ products tend, overall (though with many exceptions, obviously) to have sales pages more conducive to successful affiliate sales;

(iii) My traffic is different from "average traffic": my articles, little sites and email marketing all attract and retain a different group of potential customers from the norm.

It reminds me of the old, apocryphal story about Dr Samuel S. Gall - inventor of the "gall bladder" - who qualified from Harvard med school and decided to specialise in "diseases of the rich"!

I intend in mid-to-late 2011 to start a trial of promoting some much more expensive products (I have other business plans first).

It's very interesting how this can often times be so true.

I know a lot of people want to "over deliver" and in doing so often times under price their service or product...sometimes it's not best to do that, especially if your service or product merits a higher price.

My father used to own a green grocery shop. Many times I saw him split a batch of tomatoes into two boxes and price one box 50% more than the other. When customers asked him what the difference was he told them that there was no difference and that he had simply put a different price on the boxes. In spite of this they still bought the more expensive tomatoes. He sold at least as many of the expensive ones as he did the identical cheaper ones.

I agree with Markowe, and many others in this thread. I had a store with clothes for women, which were quite expensive, but we used to sell them very easily before the recession. Their price seemed to be exaggeratedly high. We justified it by saying that its quality was excellent, and it really was very good, but the price was also really exaggeratedly high. We would pay for ex 15 euros for a shirt and sell it for 85 euros. However, the price was not a problem for our customers because they had money. (Now everything has changed very much due to the global financial crisis.) Our customers felt a great pleasure when they would buy something very expensive.

The perceived value is what really matters.

However, the perceived value depends on the product's category and demand, and on the public's knowledge about it.

If you want to find out the perceived value of a new product, which is not already in the market for example, you will have to make many calculations.

Many times the public cannot evaluate the quality of an excellent product. So, if it won't be cheap, nobody will buy it. On the other hand, if you'll manage to convince your customers that a regular product is extraordinary, you'll be able to sell it as if it was something special, like many others have already mentioned in this thread.

Everything depends on too many factors.