Ethics on pricing.

Why not? What would be 'unethical' about it? Every product creator has a markup - why else would you bother to create products if there were no profit to be gained?

When you have a formula you use for your products - and you research pricing of competing products - that tells you the limit to spend on product development in order to reach your projected profit.

I start my prices on the high side of what I think the market will bear. I always have a pretty good idea of what that is beforehand.

I like to have room to test lower prices and offer meaningful discounts.

Your ability to sell anything at any price will depend on many factors. Frank could sell a simple report to his groupies for $700. You might not be able to get anyone to give you seven dollars for the same report.

What are your ethics on pricing, do you have any?

It's not like you're selling life saving pharmaceuticals.

Mark the price up whatever you want it to be.

Do you think convenience stores care about your feelings when they charge $1.50 for a cold pop that they've paid $0.35 for the same drink? They don't care and you'll still buy the drink.

Interesting concept on pricing

In fact, most pricing follow the same pattern. It is normally @30% most companies sell their product to wholesale distributors. ie, by the time it reaches the market, it is sold at 3.5 times the company sold it, with profit. The actual production cost is much lower for the company.

There is no ethics in pricing by default. You sell something to get as much profit as you can, otherwise, why would you sell?

I take the view that it's only money. So no big deal. If someone has issues with the price charged, it is their fear aka poverty consciousness and has all to do with their mindset and nothing to do with the neutral means of exchange.

Ryan

@rockerjaw, please quote the post so people can see who you are responding to. Most of the time it isn't clear.

Any number or "rule of thumb" you get is arbitrary. Most "facts" are opinions. It's all a BS story we make up.

Value is indeed the reason someone buys a thing for a higher price than being sold elsewhere. And that's a perception issue, a marketing concept.

There was a guy who would sell computers for $10K when the going rate was around $3K. How could he do that? "Because they're buying the computer from ME." Somehow he got that sense of value perception in the buyers' heads around to the belief that getting the thing from him WAS better and worth triple what they would pay elsewhere.

I recommend reading some Dan Kennedy, especially https://www.amazon.com/No-B-S-Price-...dp/1599184001/

And you will discover that just about everything is Opinion.

Nothing wrong with it. The price is the value that your customers "feel" it worth. If you can create a tool with the cost of $1, but you can tell someone that it can save them $1000/month (of course, you should prove it), there is no reason they don't buy them at the price of $8.

Markup to a certain degree is irrelevant other than it needs to be high enough to generate a net profit.

What is it worth to someone and what will they pay is what matters.

Also, at what price produces the highest ROI, which typically isn't the very top dollar that produces sales.

Are you talking only about physical products? In that case there is a set cost to produce each item.

With an information product it's a little more vague. How much do you value your time? How many hours did you spend on research? How long did it take you to write the product or produce the videos? More importantly, how many years did you spend gaining the experience that allowed you to learn the information that you're sharing?

In the end, you much convince consumers that what you're selling is worth the price you're asking. And if you want repeat buyers, you'd better be telling the truth.

Rose

Interesting subject..this is a good question.

1. It's all about perception of the value offered

2. People buy from people in the IM world, for ex. if I like and trust "frank kern" I'll buy from him..

3. There always will be higher priced products (for the same value) sold to the people that have higher budgets to spend...we can see this in many industries (fashion, art, etc) how big brands sell for some huge prices their products.. In this case we can consider frank kern a brand and he can afford to sell at such high prices..

If customers feel that they are satisfied with the product,or if they can earn more than they spent, it may be fine. However, Frank Kern is somewhat like a brand. Thus, people may find satisfaction in owning one of of his products.

I don't think this is a problem with ethics at all. Someone doesn't need to buy it. I would only say it becomes an ethics issue if there are hidden fees or an attempt to scam someone.

I think we need to look at the question with a different point of view.

First of all, if you produce a product or service, it's because you're doing business. As we all know, doing business has the main objective of earning.

Up to here everything is normal.

However, if you want to do business seriously and therefore with a different background value you need to make high-value content and not copying other famous flagship products.

Since a valuable content requires time to be constructed, prepared, corrected and advertised, it is necessary to have a return.

The value of a valuable product can not be judged by a simple comparison with similar products or other market indices.

First of all an analysis of its hourly or daily value should be made, in order to have an idea of ​​how much time and therefore economic value to attribute to the product.

Once this is done, a search must be made according to the reference market niche. Clearly if you have a reference niche for people looking for free or low-priced content and think about it:
"My product is worth $ 100 but Frank tells me to multiply it by 8 so I make $ 800" you will not be very successful.

So your market niche decides the price and the consequent positioning of your product.

If you create value, bring solutions to the market, you have a strong and recognized personal brand, you will be able to position your products at the prices you decide.

I'll give you an example.

You talked about Tony Robbins;

Tony has a personal brand like a few. When you hear his name, you already speak of excellence in the training field.
Precisely for this reason, for this international exhibition he sells his private consultancies for $ 100,000 for 2 days.
Is it an ethical price? Is it a fair price? Only the value that will bring this formation will be able to tell you, but given its appearance I do not think you will be disappointed.

But even given the high price, there is the queue of people who require these consultations.

So as you see, if you bring value and solve problems there are no problems in demanding what you think is right.

To your success

Nick

Please do not use posts to thank each person - use the 'thanks' button instead That's what it is for.

If you've brought your target audience to a point whereby they now trust you & the product.

Price shouldn't be the problem.

Most people buy what they perceive is best for themselves.

Price objection is the customer way of telling you that value is lacking or not evident.

Cost is a factor in pricing but often not the most important one. Also take into account:

• How much is it worth to the buyer (especially if the purchase can make money for the buyer)
• What alternatives does the buyer have for this purchase (are there competing products?)

Supply and demand.. Capitalism at its finest. It's not a perfect model but it't the best we have

There is no ethics on price.

I mean it's worth what it is paid for.. If you can get it sold, get it sold.

There is no rule on pricing.

Most of the time you are not going to sell anything at that high of an ROI if you have no brand.

The better your brand name is the higher you can raise (and sell) your products.

Hopefully it's well made or helpful.

Ethics does not come into pricing. It all comes down to value and each product/service has different value to different people.

Ethics and pricing is more important when it comes to necessity products like food/toilet paper/pain killers etc. Things we actually NEED.

It is not a matter of ethics, not usually anyway. The market sets the price. You sell for whatever the market is willing to pay.

I know there are certain ethical problems, especially for the phillosphers among us, but as long as you're not jacking up the prices on cancer or aids drugs, and people are DYING because of your pursuit of profits, i think you can sleep easy at night

it all depends on the person most of the time

As someone once said, "the value of a thing is the money it will bring". If the information you provide about the product or service is accurate, complete, honest, etc. and the buyer considers it to be good value and worth the cost, then fine. That's where the ethics come in. Are you misleading, misrepresenting, misinforming, using half-truths, knowing and taking advantage of the buyer's ignorance, abusing their trust, manipulating, using tricks to fool the buyer for your own gain, etc.?

The only rule that I have for pricing is that products always deliver more value than they cost. Price is simply what you pay, value is what you get.

I agree with that other members said. You can put whatever price you want as long as you deliver value. If that brings positive results, you are doing something good.

If people complain the price is too high, that means they either don't get enough value, or they are not the right audience.

Simple..supply and demand which is capitalism at its finest lol