pricing question...

Yes, keep increasing the price to see what provides the highest ROI.

Yes, you can always drop the price back down If needed to where you know it sells.

Hi Nina,

If I were facing this situation I would test a higher price, but not on your current customers. I think those loyal to your business will be upset if they recently saw a doubling in price, and then the price goes up again even more. If you have a recurring billing, or if you customers are buying the same service from you over and over again, I would give them a break for awhile - let them have the service at the old price they are used to ... otherwise they might feel you are only concerned about your profit and not them as loyal customers.

But testing a new price on prospects that won't know what you have charged in the past is just good business sense. I think it's smart to know what the market will bear in terms of paying for your service. Give great value for a reasonable and sensible price. Also take into consideration what direct competitors are charging.

One way to justify a higher price is to add benefits to your service so it becomes a better deal for the customer. Often you can do this without a lot of additional effort with digital products in the niche that explain your service, or how to get the most out of it, or simply tips and suggestions in the niche. If you don't have one, maybe adding a monthly newsletter or weekly live sessions to answer questions and give help would be appropriate. I don't know your niche, but adding value both justifies a higher price for the service and sets you apart from the competition that is not willing to "go the extra mile."

The best to you,

Steve

Did this with my own program on this very forum. Started out at $37. Then $57. Then $87. It sold all right at all those price points.

Then I tried $97. Wouldn't sell.

$197. Wouldn't sell.

$297?

Magic number. Sold it at that price point for years.

Still stupid amazing value.

At the end, when I was about to close it out as I didn't want such a low priced option of getting my help available anymore as it devalued me, I tried $497. Made some sales but nowhere near as easy as at $297.

But at any rate, while the format and content had changed and expanded as time went on, the essence of the thing was not much different at $297 than it had been at $37. Waaaaay underpriced at $37 but hey this is WF and the WSO section is not the real world ;-)

Notice the market's beliefs at certain price points. Eager at the low two-figure levels as the market instinctually knew it was underpriced. Then at the $97 and $197 points, unsure because it was in that murky zone between "this is a crazy valuable deal" and "must be good as the price is 'so high' (relative to other offers on this forum)". Then settling in at the $297 level as the equilibrium settled between sense of value and "it must be good".

Your takeaway should be that price elasticity is a very real thing. Test away.

definitely you have to increase the price, and see what is the best ceiling for this offer!

If you have posted your pricing somewhere else, I don't recommend you to increase price. If you want to increase price (and I love to do it too), you should clearly indicate why you raise your price and what are more benefits when they pay more money.

Hi Nina Petrov,

I would recommend to continue checking different prices and find out where lies the sweet spot between cuantity of sales and benefits. This way you will find out and be sure which price works best for you in terms of ROI.

Hope this helps,

Best,

Erik

You could always increase it in small increments as well, no need to always double it if you're not sure.

I would say that it needs to be a balance between price and what you provide as value and knowledge for working well in the long term

You can definitely double the price and test your offer as it is using some new leads and see what conversions you get..in the end it depends on what your goal is and how your market perceives your product.. however if you get some low conversions try to see if you can present you product in a different way and/or add more stuff that are giving the perception of more value than your competition is offering .. the sense of a premium product...

I think you should try with different price brackets to see which fits best and converts into clients. Make sure that you are over delivering.

Sure you should increase the price as long as it's profitable.

If you're loosing cash cut your losses earlier and stick to a price tag that works.

I tested my ebook consulting service at $50/month. Then I changed it to $100. No sales both times.

Changed it to $200/month, and now i'm getting clients, and lots of inquiries about my services. But... I wouldn't double it again. I'm not that greedy (and i'm not insinuating that you are). I would keep it at the same good price point you have it at now. But that's just me. I know how much value money has in my life.

Price is a PSYCHOLOGICAL issue: double it. You will get more high ticket clients, and less refund.

Of course you may need to collect more leads, but you will have more margin too.

Of course, that's not easy advice to give. but I see 88.2% of Business Owners Should Double Their Prices

the higher price testing didn't work at all.

I suppose you can increase it again but try to analyze what trigerred the increasing. It might be risky

What did it feel like Nina? Charging the higher price? Probably not too great, right? Bingo; going off feelings is the simplest way to nail down the price jump. Feels uncomfortable of course but you should feel excited and clear and detached too, when doubling or tripling price points.