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Help - Pricing a service

by shabtay
9 replies
Hello,

I'm launching a new service (finance niche) and I wonder how should I price it...

Should I price it like all the other services out there (around $47-$97 each month) or should I price it low... very very low (below $10 each month).

With the second option I'll get more subscribers, we all know that many of them will stop using the service and keep paying (not that I want that but it's happened) so less people will leave the service when time goes by...

The disadvantages of pricing it low... it will be very hard to convince affiliate to promote the service...

What do you think... I will be happy to hear all kind of opinions and ideas..

Regards,
Eli
#pricing #service
  • Profile picture of the author FrankieTP2
    Compare your services with other similar services out there. Check their prices and make a decision on what your prices should be based on what you offer compared to others.
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  • Profile picture of the author Ronno99
    Look at it from the point of view of your customer. Now can you position your product as premium in some important way (not in every way, look for the most important points of differentiation for a certain type of customer) over your competitor?
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  • Profile picture of the author Taxguy
    Normally the best approach is to do a limited version for free. Once you have their email and contact info, then you can periodically email them and try to get them to upgrade to the paid version.
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  • Profile picture of the author Nags
    Well, finance is a market and not a niche if am not wrong. And an approach like blindly going behind $47 or $97 wouldn't result good i guess. Depending on the purpose why you want to sell, who you are trying to sell, what value it serves and how does your competitors approach it etc need to be considered. Trust me, it is not necessary to match your competitor's price. If you can explain the USP of your product, you can fix the price what you think as sensible.
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  • Profile picture of the author E. Brian Rose
    Two things you should learn: Elasticity and Split Testing

    These two things are key ingredients to learning what to price your product or services and the best pricing models for your offers.
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    Founder of JVZoo. All around good guy :)

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  • Profile picture of the author Tricerra
    Structuring the price of your offering can be difficult. If you have the ability and a great upgrade offer you can let your affiliates sell the basic membership and keep all 10 bucks of the sale and you profit on the backend. It might make getting your cash quickly tougher but it is a way to offer a tangible product with a great upgrade at a later time.

    You just have to understand what the cost of getting those customers actually is worth to you.

    David
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    • Profile picture of the author packerfan
      Do you want 10,000 cheap skate customers or 100 easy to deal with premium customers. Obviously it's not that easy, but in a way it is.

      You say it's a service, which makes me think you'll have real interactions with real people. It's a lot easier to work with less clients in the beginning until you can build a support team, etc.

      By the way, I'd suggest reading some stuff by Joe Polish, check out his I love marketing pod casts. If you're talking about a real business you should look to real experts for advice. Not us knuckle heads that think making adsense an amazon sites is "internet marketing".
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  • Profile picture of the author j0b0123
    I would say to see what the junk/lower quality competitors are pricing theirs at. There is a certain aspect of pricing that lower is not always better. If everyone is at $47, and the majority is not that good or worth anything I would not price any product at that price. I would shoot for a much higher price point (provided my product provides a much greater value).
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  • Profile picture of the author dtang4
    It's difficult to offer pricing advice without knowing a bit more about your service.

    I would recommend first deciding on who your primary target market is. Then, based on that, you need to cater all your marketing efforts around that -- e.g. pricing, packaging, etc. In other words, your pricing should be aligned w/ the rest of your marketing efforts and can't be isolated and analyzed by itself.
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