Pricing your product, $47? or $97?

Only one problem with your theory, Eric. By selling a $97 product for $27, you teach your buyers to expect low prices. When you pitch them a $97 product for $97, you'll get a big WTF because you weren't consistent.

Unless you plan to leave that extra $70 on the table for every product you put out...

In the real world, discounting like that was killing the photo processing business even before digital cameras starting hammering nails in the coffin. Nobody actually paid full price for photo finishing, they just picked up a coupon from the paper, the Val-Pak they just got, the flyer someone hung on their door, or whatever.

The same thing is happening in the pizza business. Does anyone ever pay the price listed on the menu? Or do they use a coupon, or some type of bundled special?

About the only way I can see selling a product that cheaply is with some form of very limited "reason why" promotion. Something like "it's my birthday, so for the next week you can buy my $97 product for $27..."

That way, you get the best of both worlds. You get the bump from selling a good product cheap. And you get to keep your price integrity.

There's another way to look at it, too.

There are times when you may sell more by raising the price. If you do a good job of communicating value, and people see your product as a legitimate $97 product, selling it for $27 could raise the red flags. I know that when I see something like this, my first thought is that there's something fishy going on. So instead of hitting the buy button, I start reading the fine print and the disclaimers; I start looking for gotchas.

So, for the OP, I'd say try $47, $97 and $147. If your objective is list-building, take the price with the best conversion. If your objective is front-end profit, take the price with the highest ROI.

Very open ended question without looking at the product or knowing the niche. Just test both price points and go with the one that converts the best. Perceived value must be high in the eyes of the buyer for either of these prices. The higher the price the more value must be displayed.

Tony

Wondering this, too.

My book is $45. But it's not an ebook. They actually get a bound, hard copy.

There are three main reasons.

1. People will tend to psychologically round 7 downward rather than up.

2. The number 7 has mythological and religious overtones as being a special number.

3. It's been commonly used in advertising for almost 150 years, since the invention of the mail order offer. Look at some scans of old newspapers from the 1800's.