Super Confused About Pricing

by harrel
8 replies
Few weeks ago I posted how much should I charge here on WF. I've got pretty neat and a valid advice. I gave away the product to 50 people who agreed to fill surveys I sent them. Most of them told me that it is a good product. 5 people said it is much like a copied version of tony robbins' personal power with video. I feel is it a bad sign. So I added another 5 weeks audio course in it.

The Content is this:
This is just one audio course attached with the main training.

Type: Audio Course
Content: Audio Files, Notes, Flash Cards, exercises and reports
Topics covered: Persuasion, productivity, psychological triggers, physiological fitness system and mental reprogramming.

Also includes some NLP cognitive therapy sessions.

The survey asked the question that how are you willing to spend for this program and some people said that over $1000 and some said not more than $200. But most of them said they are willing to pay around $500 (I giving the average)

Then I hired a consultant, who's name I'm not permitted to use in my websites as an endorser or affiliate. He told me that I should charge the product over $1000. I told him that is insane. He told me to test it. He is a reputable IMer and did 3 launches in which his products cost exact $1997. So I think I should keep his advice and make the price $997.

Is it true that affiliates also love high priced products to promote?

Can we advertise Personal Growth related stuff here on WSO?

What is the average refund rate? How can one reduce refund rates?

My questions may sound stupid to experienced guys here, but sorry guys, this is my first totally Internet based launch and I have high expectations from it, so I'm nervous.
#confused #pricing #super
  • Profile picture of the author Ken Durham
    set the price high, then mark it down for a special.... people love to get deals... and then test.

    Of course people prefer to sell the high priced products, if they are good.
    I don't know about you, but I would rather make $500 per sale as opposed to $5.
    Signature

    yes, I am....

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    • Profile picture of the author evolution2
      High prices are great, but it's hard to justify them right out of the gate. Does anyone know you are and can you command that? Do you have really great credentials to command that? Affiliates I'm sure look at price when choosing what to promote, but if the product doesn't sell at a high price point, then it won't matter. Refund rates vary with product quality and price point. A 2K product with generally get more refunds than a 20 dollar product (but not always). I always price test with a split tester to see what REALLY makes the most sense.
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    • Profile picture of the author Alexa Smith
      Banned
      "How much to charge for a specific product" isn't really something anyone can decide just from the product.

      It's going to depend on the whole sales process, who the vendor is, how well known he is, what his credibility is, what he's done before, and so on.

      Selling a product for $997 (or indeed for $1,997) is a very different proposition for a vendor with a huge list of buyers of his earlier $297 and $497 products from what it is to someone with a "first product".
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  • Profile picture of the author travlinguy
    You're trying to eat the whole elephant with a single bite. Maybe you should establish some credibility and a following by offering smaller products first. Start with some special reports. Build a list. Get yourself a blog with its own domain and set it up so you come across as a $1000+ guy. It's hard to break into the big money from the starting line. You need to take it a step at a time.
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    • Profile picture of the author harrel
      Originally Posted by travlinguy View Post

      You're trying to eat the whole elephant with a single bite. Maybe you should establish some credibility and a following by offering smaller products first. Start with some special reports. Build a list. Get yourself a blog with its own domain and set it up so you come across as a $1000+ guy. It's hard to break into the big money from the starting line. You need to take it a step at a time.
      Thanks for the advice!

      I started creating this product in 2010 as a low ticket product for $197 which follows another launch for $997 and a ultimately a seminar. But I went on to cover more and more topics. I've also spent a good money on production. (although a product called video boss saved a lot of money on production)

      I actually don't want to sell any $20, $40 or even $97 product, because I cannot deliver the promise in short product like 3 ebooks or a 2-3 audio files.
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  • Profile picture of the author Wechito
    I cannot tell you how much to charge without checking the product, but here are my thoughts:

    - If this is your first product and you do not have a reputation in the market yet, I think something around $2000 is a pretty high price, unless you have a good "sponsor" or JV partner who can help you get out there and build your reputation.

    - Affiliate love high priced product. This is true. But high priced products are more difficult to sell. Again, it depend of who are going to be your affiliates.

    - Can we advertise Personal Growth related stuff here on WSO? I don't see why not? However, I don't think this is the best place to sell high-priced products.

    - The refund rate will depend on the product. Good quality product and realistic sales letter are the best guarantee to reduce the refund rate.
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  • Here's my advice: price it high, and simply work on your marketing message so it builds up on the perceptual value.

    Last year I launched a product for which I split-tested the price tag during the launch. Guess what? conversions at $297 and $497 where equal... EQUAL! So if you manage to tweak your sales page to justify a higher price tag, people will gladly pay almost double for the same product.

    The "right price" is a perceptual thing: people would equally buy a Ferrari regardless of whether the price was $120,000 or $160,000 per car. If you wrap up the product with a glossy paper, you can easily pump up the price without hurting your conversions.

    PS: refund rates depend on the quality of the product and on the sale page's hype level, not on the price.
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    • Profile picture of the author harrel
      Originally Posted by Anonymous Affiliate View Post

      Here's my advice: price it high, and simply work on your marketing message so it builds up on the perceptual value.

      Last year I launched a product for which I split-tested the price tag during the launch. Guess what? conversions at $297 and $497 where equal... EQUAL! So if you manage to tweak your sales page to justify a higher price tag, people will gladly pay almost double for the same product.

      The "right price" is a perceptual thing: people would equally buy a Ferrari regardless of whether the price was $120,000 or $160,000 per car. If you wrap up the product with a glossy paper, you can easily pump up the price without hurting your conversions.

      PS: refund rates depend on the quality of the product and on the sale page's hype level, not on the price.
      Thanks, my consultant told me that over delivery is something that worked for him in reducing refund rates.

      I'm really freaked out for split testing the price, because few days ago I saw a lady selling a product for $497 and I stumbled upon another page while researching her, where the same product was for $397 and it wasn't even any special offer. Clearly as an IMer I know that she is split testing, but as a customer, I felt robbed. So I decided not to make this mistake. Although I sent her support an email complaining and she was enough kind to give me a refund of $100 and a $50 value card.
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