Is there a formula to come up with price?

by jkiley
10 replies
I have written this app, and I need somebody to take a look at the page and tell me about the content and the cocept of the application if it sounds good.

Compare prices for millions of items from thousands of stores.

This is a beta version of the application so it is free, I am also trying to come up with the price of the application. I am not sure if you guys have any forumula or such to come up with the price? What makes you say that you want to sell something for 49.95 and not 44.95? Is it just a gut feeling? What should be the price of this price watcher application?

Thanks
#formula #price
  • Profile picture of the author slvrsrfr
    just had a quick look at it. i think it's a neat idea. and something i'd rather try and sell as a membership site. maybe $9 mth or something.

    could work out quite well that way.
    Signature
    What would you do IF you could do it?
    After twelve years of therapy my psychiatrist said something that brought tears to my eyes. He said, "No hablo ingles."
    {{ DiscussionBoard.errors[922678].message }}
    • Profile picture of the author jkiley
      Originally Posted by slvrsrfr View Post

      just had a quick look at it. i think it's a neat idea. and something i'd rather try and sell as a membership site. maybe $9 mth or something.

      could work out quite well that way.
      Actually I am thinking of giving 90% (or so) in commissions with 29.95 as the price. I think that should create plenty of interest for lot of people to start pushing this product?
      {{ DiscussionBoard.errors[922691].message }}
  • Profile picture of the author TheRichJerksNet
    There are Php scripts that do this same thing .. Maybe search hotscripts.com and see if you can compare prices you find on similar php scripts.

    It may give you an idea where to start your pricing.

    James
    {{ DiscussionBoard.errors[922730].message }}
  • Profile picture of the author jhongren
    Hi,

    Wow 90% is alot of commission.

    Remember you should build in more profit
    by promoting a backend... =)

    It can be a one year membership for a
    certain price...

    or

    some other additional bonus which meets
    the same needs of your buyers...

    This should be able to help you
    drive up your profits.

    John
    {{ DiscussionBoard.errors[922778].message }}
    • Profile picture of the author jkiley
      Originally Posted by jhongren View Post

      Hi,

      Wow 90% is alot of commission.

      Remember you should build in more profit
      by promoting a backend... =)

      It can be a one year membership for a
      certain price...

      or

      some other additional bonus which meets
      the same needs of your buyers...

      This should be able to help you
      drive up your profits.

      John

      Well, I plan to make money thru commission of selling those items, so I can give the entire application for free. The reason I want to put price so that I can get affiliates to push this to the consumers.
      {{ DiscussionBoard.errors[923130].message }}
  • Profile picture of the author edman
    Although 90% is appealing, it brings question about the true value of the product in the eyes of buyers if you plan to publicize the affiliate system

    Putting a price on it is good idea though

    One though... Will it be possible for you to allow your affiliates to give it free, and in return have them advertise inside as well also randomly share some commissions with you, say someone purchases a product, instead of you getting the commission they will.. and this can be at random, and maybe 1 out of say 5 sales etc...

    Just a thought

    Cheers and great job
    Signature
    Don't Google it... ASK Edward
    {{ DiscussionBoard.errors[923172].message }}
    • Profile picture of the author jkiley
      Originally Posted by edman View Post

      Although 90% is appealing, it brings question about the true value of the product in the eyes of buyers if you plan to publicize the affiliate system

      Putting a price on it is good idea though

      One though... Will it be possible for you to allow your affiliates to give it free, and in return have them advertise inside as well also randomly share some commissions with you, say someone purchases a product, instead of you getting the commission they will.. and this can be at random, and maybe 1 out of say 5 sales etc...

      Just a thought

      Cheers and great job
      Good idea. I didn't think about it before but maybe I can do something like that, where they can get the check for every random sale....or maybe "register to win" kind of thing.
      {{ DiscussionBoard.errors[923185].message }}
  • Profile picture of the author edman
    Right on...

    This way it will be in everyone's best interest to work harder because it like their own business too
    Signature
    Don't Google it... ASK Edward
    {{ DiscussionBoard.errors[923189].message }}
    • Profile picture of the author jkiley
      Originally Posted by edman View Post

      Right on...

      This way it will be in everyone's best interest to work harder because it like their own business too
      OK, then how do I find these people then? who can sell this for me?
      {{ DiscussionBoard.errors[923222].message }}
  • Profile picture of the author aihamshujaa
    Whether or not you choose to make your site a membership site, regarding prices I'm afraid that you are going to have to experiment to see which works best for your chosen niche.
    You could go for a gut feel, but check to see if you have competitors in your chosen field. Then pretend like your ordering to see what price you are given. But don't go through with the order. This should give you a sample of prices to choose from. Then whatever price you go with, make sure is a whole amount and ends in 7. For example, instead of £29.95, use £27. People like dealing in whole numbers cos it avoids loose change and the number 7 is more pleasing to the eye. Hope this helps.
    Signature
    Unlimited Autoresponders & Email Newsletters
    99.34% email delivered. Free support.
    http://www.autorespondingservice.com
    {{ DiscussionBoard.errors[923258].message }}

Trending Topics