Sales volume dropped after increasing my price...is this normal?

30 replies
I'm certain that some of you have experienced this before, so I figured that I'd ask for advice.

On my website, I have a paid member's area which contains TONS of content (thousands of videos). I had the price set at $59 one time fee for a year now. I was doing pretty good at that price point not using any paid advertising. "Pretty good" for me means $1K to $2K per month.

I recently just went through some coaching and he helped me to set my site up in a way which helps direct people towards buying this membership more frequently. As a result of implementing his suggestions, I had my best ever month in January. I did just over $2500 in sales.

Now, my plan has been to increase the price of this membership to at least $99 (I always felt that $59 way too low...$99 is low still). For the last 2 weeks of January, on my sales page I had a notification on the top saying that the price would be increasing to $99 starting on Feb 1st.

In Janurary I was making about 2 to 6 sales per day. This could have been a result of a few different things. Maybe the "warning" on my sales page letting them know that the price would be increasing. Maybe it was due to the changes to my website. Maybe it was due to the fact that I did a new Youtube video which usually causes a spike in sales. I don't know.

All I know is that once I raised my price to $99, the sales volume noticeably dropped. In fact, I only did 4 sales total in February at this new price.

My price is definitely fair. I have TONS of great reviews right on my sales page. No one else in my niche is offering the amount of content that I am for this one-time fee either. However, people just seemed to be turned off by the $99 pricetag.

I'm very reluctant to drop the price back down again though.

So I'm just wondering what you guys do in dealing with this type of thing? Maybe I just have to ride it out for a while and allow my audience to get used to the fact that the low price is no longer available?

Thanks!
#dropped #increasing #normal #priceis #sales #volume
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  • Profile picture of the author jmosticc22
    That is a pretty dramatic raise in price in a short time period, my first reaction is to let it run for a while and let it re-implement. You know it will sell, i think it is just a matter of adjustment.
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  • Profile picture of the author Kay King
    I tried setting up a $10/month or $97/year plan...but sales significantly plummeted when I did that. People seem to be swayed away from the whole recurring thing, which is understandable.

    It was suggested to me that I should switch from $59/lifetime to just a simple 1-year membership (non-recurring) for the same price.

    I just made the change today, so I will have to just wait and see what happens. I am a little nervous that it will result in a drop in sales though.
    The above is from a post you made a few months ago - your assumption was sales dropped due to 'recurring' monthly fee - perhaps sales dropped due to increased annual fee? In that post you said you had found "$59 to be the sweet spot".


    Looks like it still is. It's been suggested before that you may need to add value or additional products to improve that monthly income Your focus seems to be on increasing the price of the same product.



    Because you announced a hefty price increase, you don't know if the January higher sales were due to ads or people joining to 'beat' the price increase.


    My guess is you have a $59 product that sells reliably - and my same advice is to create ancillary products to go with that flagship product and raise your income that way.


    The only price-play you haven't tried is perhaps making it a 6 month membership for $59 with auto renew every six months. If people sign up for year - do they pay for a second year?
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    • Profile picture of the author Bkelly301
      Hey thanks for the replies.

      Things are different now. My site is now an actual membership site where people need to create either a free membership or a full access membership. Whereas before my "product" was being promoted as a "course".

      I also didn't mention in this thread that I spent the last 2 months doing a major redesign and organization of all my content. It's literally a completely different site now. Before it was just "a blog with something for sale on it". It's kind of hard to explain in writing, but for a one-time fee of $100...it's still a steal.

      Also, before when I made a (temporary) change, I was simultaneously trying to both increase the price AND make it recurring pricing. This time, it's remaining at a one-time fee for lifetime access.

      Regarding additional products...I'm currently working towards creating a separate membership that will have recurring pricing. This is a different product all together. That way I can still have the lifetime option for people AND a recurring product.

      I think that what the above poster said may be the best bet - stick it out and let my audience adjust. I have the problem of always getting worried when sales decrease, so I go back to "safe". However, I think I need to ride the temporary sales decline out, because I'd much rather be doing 2 to 6 sales per day @ $99. I definitely believe this is possible .
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      • Originally Posted by Bkelly301 View Post

        It's kind of hard to explain in writing, but for a one-time fee of $100...it's still a steal.
        That's what YOU think. Your prospects don't think that or you wouldn't be here talking about a drop in sales with increased prices. And, this is the 2nd time you've run into this so it's not a random chance type of thing. So, basically your thinking is wrong because ultimately the ones that determine our pricing are not us but our prospects/customers.

        Your audience isn't convinced. So, maybe you need to up your copywriting/persuasion skills. Or maybe you need to do some split tests. Perhaps they'd pay $69 or $74 but not $100.

        Don't add a new recurring product/membership because it's recurring (that's the way I took it). Add a new product/membership and provide the value and persuasion where your prospects/customers would love to have the chance to pay more and even every month just to get the goodies.

        Mark
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        • Profile picture of the author Bkelly301
          Originally Posted by Mark Singletary View Post

          That's what YOU think. Your prospects don't think that or you wouldn't be here talking about a drop in sales with increased prices. And, this is the 2nd time you've run into this so it's not a random chance type of thing. So, basically your thinking is wrong because ultimately the ones that determine our pricing are not us, but the customers.

          Mark
          I do agree with this. However, I do feel that the true test would be TIME (as suggested above). There have been too many variables introduced to make an accurate assessment. Plus, it's only been 10 days since the price increase went into effect. Also, I'm still making some sales at this new price. In a few months, I'll have a much better idea of whether or not this is a good price point.

          And my monthly product is going to be a low-cost weekly Q&A live stream. It may or may not be successful, but it's option for people to learn from me. I ALWAYS am thinking "value first". However, I also am trying to be smart about it such that I can make a full time income from doing this.
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  • Profile picture of the author DWolfe
    Originally Posted by Bkelly301 View Post


    In January I was making about 2 to 6 sales per day. This could have been a result of a few different things. Maybe the "warning" on my sales page letting them know that the price would be increasing. Maybe it was due to the changes to my website. Maybe it was due to the fact that I did a new Youtube video which usually causes a spike in sales. I don't know.
    First off you made to many changes at once. To many changes new videos raising the price. You had a decent price point for what you offered. You warned people the price was going up, that is a turn off. You could of came up with a back end product for the higher price where they could buy access to the new site.

    Take a good luck how the Casey Research group advertises different products and the Palm Beach group. The entry level prices are high quality, than they have premium products offered. That way you would not annoy your current and future buyers and members may see your quality. Than see the back end offer and buy the premium service.
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    • Profile picture of the author Bkelly301
      Originally Posted by DWolfe View Post

      First off you made to many changes at once. To many changes new videos raising the price. You had a decent price point for what you offered. You warned people the price was going up, that is a turn off. You could of came up with a back end product for the higher price where they could buy access to the new site.
      I agree that a lot of changes happened at once which makes it difficult to make reasonable assumptions.

      I follow a very successful marketer who sells a Jiujitsu product. He did the same thing with "warning" people that the price would be increasing from $170 to $297. He felt that his product was priced too low, so he increased the price. It made perfect sense to me. I also bought his product a few years ago and followed his marketing of it for years.

      I didn't have a decent price point before. Rather, I was priced way too low. I guess there's no actual "correct" way of doing this other than just doing it and letting people adjust. However, I'd be ripping myself off by keeping it that low.

      My customers have said that this is literally the best product of it's kind on the market. Increasing the price by $40 after keeping it at the (ridiculously low) price of $59/lifetime for over a year now isn't something that's unreasonable. I don't think so at least.

      I look at it like I paid for reviews and a baseline of customers.
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  • Profile picture of the author Kay King
    Could well be sticking to it is all you need - sounds like you've made quite a few additions/improvmeents and you niche is specialized so you will continue to pull new viewers.


    Might be good to set a time frame of 6 months (or more) and just leave the pricing as it is while you work on the 'other stuff'....and see if you aren't making more money by then.



    You are saying 'total February sales' - but this is only Feb 10. Give it a chance.
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  • Profile picture of the author Gambino
    I've seen a few of your threads now and I think I've managed to stay away from posting in them because other people beat me to giving the same advice I would.

    I've always thought you should develop the additional products that build onto your main, successful product. I don't know anyone with a membership or coaching business that makes the bulk of their income from their front end product. A lot of them give affiliates 100% on the front end to drive in leads to their $500+ products, where the real money tends to be.

    I still think this is the way to go. But the below quote gave me some pause:

    Originally Posted by Bkelly301 View Post

    However, I'd be ripping myself off by keeping it that low.
    How much additional work is it for you when a member joins? Or, is the backend pretty much automated? Unless having customers is somehow a hassle for you, then I wouldn't view it as "ripping (yourself) off". I would price the front end at whatever is most profitable.

    Who cares if it's $9, $59, $99 or $999? Unless more clients means more time or headache for you, of course. Until you add more products, I'd run it at $99 for a month or two and see how it does.

    But I'd spend that time working on the more expensive products, not less expensive products.
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  • Profile picture of the author dburk
    Hi Bkelly301,

    Obviously, as you now realize, making a lot of changes at once is risky business. If performance decreases, or increases, you will have no idea which changes helped, and which changes hurt your website's performance. Since this is a marketing forum, or at least it used to be, let me tell you how marketing professionals would do it differently.

    This is an excellent case for performing A/B Split testing. By randomly splitting traffic between your previous website and your new website changes would help you determine if those changes are helping or hurting.

    Chances are that some changes are helping and some are making no difference, or worse, actually hurting your offer's performance. A better approach would be to split test each minor change before implementing permanently, that way you can be sure the change is actually helping to improve performance.

    A very good tool for setting this up is Google Optimize, and it's free.

    Changes to website content is not the only thing you can Split Test, You can and probably should A/B Split test your price changes to see which price point produces the greatest revenue. Forget about whether your price is too low or not, instead focus on the price point that generates the most total profit.

    Let me share an important concept in marketing. People generally will not purchase your offer unless they feel that they are getting far more value than the price they are paying. This is how markets work. If you priced your offer fairly, then you will have the fewest number of sales. Typically, you will only get more sales by offering a better than fair deal.

    Test and let actual data inform your pricing decision, not what you feel is fair. Don't let your desire to get a fairer price prevent you from maximizing your profits. Your goal should be to increase total profits, not to merely increase profit margins. The highest margin generally results in the smallest number of sales, and smaller total profit.

    Another thing you may want to consider is to offer 2 tier pricing. Offer a limited version at a lower price and create a checkout funnel with a One-Time-Offer to get the full version for just an extra $39 dollars. If they don't purchase the OTO, then take them to a downsell offer to tryout the full version for 30, 90, or 180 days days for only $19, then make a fair upgrade offer at the end of that limited period. By then your limited subscribers will have a clear sense of your offer's value and you will likely close many of those customers that you are currently missing.

    Just email, or add a website alert at the end of the full version tryout and make one last special upgrade offer for only $39 at the end of that period before raising the final upgrade price to $49 (or whatever your data shows gives you the most total profit).

    HTH,

    Don Burk
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  • Profile picture of the author savidge4
    I really do agree with what dburk is saying.. but I think it could be a lot easier than that... throw the price back to $59.00 and see what happens... if your sales increase to pre price change levels.. then YOU KNOW price is the variable at play. and then find that sweet spot.. next week jump the price to $69.. then $79 and so on to the point you reach the point of diminishing return.

    The other side of this is something you will want to talk to your coach / mentor about... in moving things around and changing things have you developed a greater sense of value? or did you just add lipstick? A cleaner funnel that has not changed the build up in value is going to get the same result as the old worn out one.. right?

    and flipping this yet again... same traffic equates same demographic.. can your traffic you are currently targeting afford the $99?

    I would start with the price bump to understand where the line in the sand is.. and from there... I would get into more calculated testing to understand what in the funnel could be changed to increase the perception of value... and if that even falls short, then you really need to be looking at the targeting of your traffic.. because THAT ( traffic ) in itself is the variable that has NOT changed through the transition from the old model to the new.
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    • Profile picture of the author Bkelly301
      Originally Posted by dburk View Post

      Hi Bkelly301,
      Don Burk
      Hey thanks for the reply. I do want to start doing some A/B testing soon. Generally from what I've found is that no matter what I do, I make roughly the same amount of sales each month when I keep the price consistent at $59. I've done a bunch of different types of sales videos and whatnot (without doing actual A/B testing of which converted the best), and the sales seem to stay consistent.

      I noticed a major spike in January, which was a result of:

      1.) The new website design which gives people only 2 options - become a free member or a full access member. This makes it clear that "full access" even exists. Before, I was just promoting it as a "course" that was there in addition to all of my free stuff.

      2.) A new YouTube video that performed better than usual

      I really need to read up on how to do this split testing stuff. I have an idea, but I still have a lot of figuring out to do.

      Regarding the tier'd pricing....I'm thinking to just keep it simple and have:

      Tier 1: One-time fee for lifetime access
      Tier 2: One-time fee for lifetime access plus monthly fee to access my "live stuff"

      Originally Posted by savidge4 View Post

      ....
      You are right. I need to pinpoint exactly what causes the changes. My intuition is telling me that:

      My audience just can't afford or doesn't want to pay the $99, but a little lower isn't a problem...

      Just like you said.

      I think you also may be right that maybe I haven't increased the perceived value even though the "funnel" is, in fact, much cleaner and more organized which benefits both me and the users of my site.

      I know it's only been a short "test window", but every time I have tried to do something like this, I have noticed a clear drop in sales. Things became really apparent because towards the end of January, I was doing 2 to 6 sales per day and then in February I could hear the crickets chirping!

      The only successful price change that I have tried to make to this "product" (which continuously increases in value since I'm constantly adding new content to it) was to change the price to $69.95 for 1 year. For some reason, this didn't seem to scare people away.

      I'll take your advice though, and go back down to $59 then slowly step up from there.

      In the meantime, I'll keep on keepin on!

      Thanks for the responses everyone!
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  • Profile picture of the author Kay King
    This is a problem and it seems to be the decision making style you follow.


    You changed the price Feb 1 - on Feb 10 you claim sales are down - after comments from members you say you will keep price there for a while.


    Two days later you are changing the price again....12 DAYS into a price change. This isn't the first time - it seems perhaps YOU don't believe your product is worth more.



    Why go back to $59 again? Why not do a real test at the current $99 or whatever for a couple months and then, if necessary, lower the price to $79 or so? If you keep dropping back to the original price, maybe just leave the price there and focus on increasing profit with more products.
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    • Profile picture of the author Bkelly301
      Originally Posted by Kay King View Post

      This is a problem and it seems to be the decision making style you follow.


      You changed the price Feb 1 - on Feb 10 you claim sales are down - after comments from members you say you will keep price there for a while.


      Two days later you are changing the price again....12 DAYS into a price change. This isn't the first time - it seems perhaps YOU don't believe your product is worth more.



      Why go back to $59 again? Why not do a real test at the current $99 or whatever for a couple months and then, if necessary, lower the price to $79 or so? If you keep dropping back to the original price, maybe just leave the price there and focus on increasing profit with more products.
      It's a fear thing that I gotta get over.

      The longest running test has been $59/lifetime...although I have made sales at every other price point that I set it at:

      - $67
      - $69.95
      - $97
      - $99.95
      - $99
      - $47
      - $97/year
      - $99/year
      - $10/month
      - $15/month

      Whenever I make a change, I get nervous when sales appear to go down, and I change it back to what works.

      Temporary decline in sales fear is just something that I have to get over I guess!
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  • Profile picture of the author Kay King
    I understand the 'fear' thing - but you need to give tests a chance to work - go do something else at least till the end of the month....
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    • Profile picture of the author savidge4
      Originally Posted by Kay King View Post

      I understand the 'fear' thing - but you need to give tests a chance to work - go do something else at least till the end of the month....
      I understand what you are saying here.. but there is not enough traffic across this to merit waiting. if week in and week out it produces 10 sales a week... or $500 that means you need to make 5 sales a week with the new sales number to BREAK even and he says he made 4 in 2 weeks.... Switch it back and see what happens.. If its a faucet and turns right back on, there are issues other than the price.. the price would at this point be at the effect of the real issue.
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  • Profile picture of the author BrownJames
    It is natural or normal if price is high then sale volume automatically decrease. If you want to increase your sale then give some offers on your product.
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  • Profile picture of the author DIABL0
    My 2 cents is that you should have tested the changes you made without a price change. If that proved to be beneficial, then you could have split tested a price change to find what produces the greatest income.
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  • Profile picture of the author 1Bryan
    Time of year is a variable you have to account for as well.

    Compare Feb 2019 to Feb 2018.

    It's one of the main comparisons big box retail tracks that most IM-ers don't seem to think of.
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  • Profile picture of the author luciesmazanska
    as jmosticc22 said
    Its very dramatic increase in a price .. basicslly you doubled it

    I would offer them to choose from at least 2 packages with a different packages
    setup one with a basic price you had before and one for lets say $79
    and watch if it works or not
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  • Profile picture of the author Bkelly301
    I'm just going to go with Kay King's advice, and just set the price that I want and forget about it...

    I've made sales at every price point that I had it set at so far, including recurring pricing. However, I always start getting scared when I haven't heard the "sale notification" on my phone for a while. This always causes me to revert back to my 'safe zone' which is offering a one-time fee.

    I'm not content with that though. Every time I make a $59/lifetime sale, I feel like I missed out on a potential better sale. I'd much rather be acquiring recurring members, so that I eventually get to a point where I am making predictable income each month.

    I've decided that since I'm already all over the place here over these last 2 weeks, that I might as well just set the pricing to my end goal which is the recurring model and just accept the fact that there will be a period (maybe months) where there's a decline in sales. Ultimately I feel this is the better strategy long-term.

    I've made sales at the recurring price even before I did the site redesign, and I know for a fact I can acquire a few new members each month. I just gotta stick with it.

    Thanks for the replies everyone!
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  • Profile picture of the author paidant
    The price adjustment still is above 50% of the existed price. So it eventually states itself to the customers that you are starting new, starting something from the scratch unless you provide them with something additional like an update to the existing service you provide. You can definitely stick to your new price but you need to build something around your service that shows some valuable changes that justifies the hike. Remember, Buyers were/are never fair.
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    • Profile picture of the author Bkelly301
      Originally Posted by paidant View Post

      The price adjustment still is above 50% of the existed price. So it eventually states itself to the customers that you are starting new, starting something from the scratch unless you provide them with something additional like an update to the existing service you provide. You can definitely stick to your new price but you need to build something around your service that shows some valuable changes that justifies the hike. Remember, Buyers were/are never fair.
      I just went back to my ultimate goal pricing which is $10/month or $99/year.

      I look at it like $59/lifetime may result in some good months here and there, but nothing being consistent. This price point also appeals to a lot of impulse buyers (people who buy it and then never really use it, but just wanted to see what it was).


      I'm definitely building up this membership site thing...constantly adding new content, starting up my livestream Q&A next week, and lots of other great things.

      I haven't made a sale in a few days (which is surely due to jumping between $59/life and $99/life which was confusing people), but just after putting the recurring model in place, I made one sale already!

      If I can get like 30 new monthly subscribers per month, plus a few yearly...I will be right back to where I was in a few month. The hardest part is accepting the initial drop in sales volume.
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  • Profile picture of the author ryanbiddulph
    You just have a money limiting belief to clear; aka, the fear of a bigger number scaring people from buying. Not true. Like all fears.
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    • Profile picture of the author Bkelly301
      Originally Posted by ryanbiddulph View Post

      You just have a money limiting belief to clear; aka, the fear of a bigger number scaring people from buying. Not true. Like all fears.
      You are dead on with this!

      I always tend to think:

      1.) People won't pay the higher price
      2.) People won't pay for a recurring membership

      However, there has never been a price point that I didn't make at least 1 sale from. I just tend to always revert back the the 'safe zone' almost immediately after making the change.

      I've just accepted the fact that I may have to wait a few months with this new recurring model in place ($10/month or $99/year). It will be much more satisfying this way though because I will be gaining 'recurring customers', which is exactly what I want!
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  • Originally Posted by Bkelly301 View Post

    I'm certain that some of you have experienced this before, so I figured that I'd ask for advice.

    On my website, I have a paid member's area which contains TONS of content (thousands of videos). I had the price set at $59 one time fee for a year now. I was doing pretty good at that price point not using any paid advertising. "Pretty good" for me means $1K to $2K per month.

    I recently just went through some coaching and he helped me to set my site up in a way which helps direct people towards buying this membership more frequently. As a result of implementing his suggestions, I had my best ever month in January. I did just over $2500 in sales.

    Now, my plan has been to increase the price of this membership to at least $99 (I always felt that $59 way too low...$99 is low still). For the last 2 weeks of January, on my sales page I had a notification on the top saying that the price would be increasing to $99 starting on Feb 1st.

    In Janurary I was making about 2 to 6 sales per day. This could have been a result of a few different things. Maybe the "warning" on my sales page letting them know that the price would be increasing. Maybe it was due to the changes to my website. Maybe it was due to the fact that I did a new Youtube video which usually causes a spike in sales. I don't know.

    All I know is that once I raised my price to $99, the sales volume noticeably dropped. In fact, I only did 4 sales total in February at this new price.

    My price is definitely fair. I have TONS of great reviews right on my sales page. No one else in my niche is offering the amount of content that I am for this one-time fee either. However, people just seemed to be turned off by the $99 pricetag.

    I'm very reluctant to drop the price back down again though.

    So I'm just wondering what you guys do in dealing with this type of thing? Maybe I just have to ride it out for a while and allow my audience to get used to the fact that the low price is no longer available?

    Thanks!
    Wait, thousands of videos for $59? And who watches thousands of videos?

    Maybe you can still charge $59, but instead of offering a thousand videos, you can package it to a smaller course or whatever and sell it at that price. And if they want the advanced videos, they can get the upsell which would be more (at least $197) + include some bonuses if you can.

    Sales will go down soon after you change your price on your website. People will have to get used to it. But if you were making sales at $59, why would you increase your price? If you believe what you are selling is worth more, try to segment it to different packages or levels. That's what I would do.

    Without knowing what you're selling or how your model works, I can't give you a better answer but if I was in your position, I would test the above idea.

    Just my 0,02
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    • Profile picture of the author Bkelly301
      Originally Posted by theDarkKnightMarketer View Post

      Wait, thousands of videos for $59? And who watches thousands of videos?

      Maybe you can still charge $59, but instead of offering a thousand videos, you can package it to a smaller course or whatever and sell it at that price. And if they want the advanced videos, they can get the upsell which would be more (at least $197) + include some bonuses if you can.

      Sales will go down soon after you change your price on your website. People will have to get used to it. But if you were making sales at $59, why would you increase your price? If you believe what you are selling is worth more, try to segment it to different packages or levels. That's what I would do.

      Without knowing what you're selling or how your model works, I can't give you a better answer but if I was in your position, I would test the above idea.

      Just my 0,02
      Ya, I had to just go and change my pricing to recurring pricing. Making sales at $59 or $99 as a one time fee is fun for a while, but long-term it's not the way to go. I'd much rather work towards acquiring 100 members minimum at $10/month rather than trying to constantly get new one time sales.

      I just have to stick with it for a while and accept the fact that my monthly income will take a temporary hit.

      And I have thousands of videos, but they aren't all instructional videos. It's hard to explain, but it's not what you think. It's music theory stuff.
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  • Profile picture of the author chuckholmes
    Do a split tests with your price.

    When I raised my eBook prices from around $7 to $20, I ended up selling about half as many eBooks, but my profit and revenue went way up.

    Also, when it comes to pricing, it doesn't matter how much YOU think your product is worth; it's what your customers think. Do a couple different tests and let the free market decide.

    That is just my two cents.
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    • Profile picture of the author Bkelly301
      Originally Posted by chuckholmes View Post


      Also, when it comes to pricing, it doesn't matter how much YOU think your product is worth; it's what your customers think.
      Definitely agree!
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  • Originally Posted by Bkelly301 View Post

    I'm very reluctant to drop the price back down again though.

    So I'm just wondering what you guys do in dealing with this type of thing? Maybe I just have to ride it out for a while and allow my audience to get used to the fact that the low price is no longer available?

    Thanks!
    I would put the price back to $59 and let them get used to the new fact that it will be $59 forever. And when sales get back to normal, don't touch anything. Just keep doing more advertising and touch nothing on the site that price related.
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