What should I charge for my product?

8 replies
I'm really confused about what I should price my product at for a hobby related niche. I'm selling a 10 part video course that is about 3.5 hours worth of training. Users will pruchase it online and be sent a login/password via email to access the course. The hobby is a popular and most people spend between $300 and $2,000 on equipment for the hobby.

I'm doing a product launch from Jeff Walkers's book "Launch" and trying to come up with a good price. I've seen people sell online products for $7 and other sell them for $350 so not sure where I should be at. Any tips on how to determine the best price? I open cart on Tuesday this week and pretty excited.
#charge #product
  • Profile picture of the author professorrosado
    You should look at similar hobbies with courses offered to compare. The hobby should be of the same afficionado level that yours caters to - for example, golf players. Then you can fix a price that would be amenable to your hobby market.

    Another thing is to split-test prices on a limited run to see which price break garners you more sales.

    You can personally offer a review copy to an experienced warrior and solicit their pricing opinion.

    But what of your target market? Are you without any niche list through which you could have polled and tested already?

    This is the problem with most newbie IMers (as offline businesses too) - you do everything but the most important part, knowing your target market fully. This important step would have answered your question before you started creating a product of now uncertain relevant value.
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    • Profile picture of the author Letsurf
      Originally Posted by professorrosado View Post

      But what of your target market? Are you without any niche list through which you could have polled and tested already?
      This is my first major product launch. Are you saying I should have polled them to get their opinion on what I should charge for the product I'm launching? Not sure what you mean here.
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  • Profile picture of the author professorrosado
    So I gather that you have created a quality product while not having a blog, newsletter, media channel, Facebook fanpage or any other aggregate of niche presence in a minimum attempt to establish yourself with some level of credibility within this niche?

    Now we can see why you have this question - and many more will be forthcoming -while you try to achieve success in your venture.

    You can appreciate the fact that if you had some niche "followers" that you could use surveys and query a sampling of your target market to help answer or verify what may be many assumptions on your part to date.

    It also indicates that you went straight for the gold in launching a product but haven't at minimum "launched" an email campaign in your niche to access interest and garner some leads before launching a product.. Simply, many people would have started with an email capture campaign, improved and perfected their target marketing skill and created an initial customer base before creating a product.

    Doing the aforementioned would avail you of valuable information about your target market and of data that would help you in creating a product that would indeed be of great value to that market for which you would know how much to charge for your laser targeted product: for not only traffic need be targeted, in product creation, products also need to resolve specific wants. The perceived value of your product to your target market equates to the price they will pay for your solution.
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    • Profile picture of the author Letsurf
      Originally Posted by professorrosado View Post

      So I gather that you have created a quality product while not having a blog, newsletter, media channel, Facebook fanpage or any other aggregate of niche presence in a minimum attempt to establish yourself with some level of credibility within this niche?
      Wow... For a Minister/Psychotherapist you're an extremely arrogant and demeaning individual. First you call me a newbie, then you assume that I have no credibility or audience and I'm just trying to make a quick buck by blasting out spam.

      I'm known in my niche around the world and have an extremely close following of several thousand people. I'm doing an email campaign according to product launch formula and have a 40%+ open rate on my pre-launch content, a number most people will never achieve.

      Thanks for your tips on polling to determine price, it's something I'll look into for future launches.
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  • Profile picture of the author topcoder
    Pick a price your comfortable with and call it the "Introductory Price" and mail it to 10% of your list. See what happens, if you get no response the lower it and say sorry about the second email, I put the full regular price, instead of the introductory price.

    If you get a large response, raise it on the next 90%
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    • Profile picture of the author Letsurf
      Originally Posted by topcoder View Post

      Pick a price your comfortable with and call it the "Introductory Price" and mail it to 10% of your list. See what happens, if you get no response the lower it and say sorry about the second email, I put the full regular price, instead of the introductory price.

      If you get a large response, raise it on the next 90%
      Sounds like a good idea =)
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  • Profile picture of the author ProducerK
    Based on simply the information that people spend 200-2000 on this Hobby, I would put the price in the $79 range for your video training.
    I think with a good marketing strategy, which it seems like you have a decent one, you should be able to get that price point.
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    • Profile picture of the author Letsurf
      Originally Posted by ProducerK View Post

      Based on simply the information that people spend 200-2000 on this Hobby, I would put the price in the $79 range for your video training.
      I think with a good marketing strategy, which it seems like you have a decent one, you should be able to get that price point.
      Thanks for your advice! I just sent out my 3rd pre launch content video and mentioned the price $47 in the video. I've received some feedback already on the price and think I might have gone a little cheap.

      A lot of people said they are excited and going to buy when it comes out. One guy asked if that price is for one module or all 10 lol. Another said it was a bargain at that price and he'd definitely sign up. I guess the true test will be when I open cart so we'll see how it goes. If it goes well I'll probably up the price on future offers.
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