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How do you price your product?

by Ashley Skuse
11 replies
I've seen quite an array of different price ranges for peoples products in the world of IM. Some are bargains, but some look like they are 500%+ more expensive than they are worth.

My product will be up soon. I'm still fairly new to IM but I think I've done well with the product creation.

My question is, how do you price your product? I've been playing around with some numbers but I still feel like I'm picking a number out of the air.

I don't want to go in too low because my product will look like it's not particularly valuable, and I don't want to go in too high otherwise people will just want their money back or simply won't buy it in the first place. It's just I don't know exactly what "too low" or "too high" is.

Any advice would be much appreciated.
#price #product
  • Profile picture of the author JayXtreme
    Without knowing you, or your product.. any suggestion would be meaningless.

    My only advice is to price your product as you see it's value.

    If you and your customers think it is worth a price, then so it will be.

    Peace

    Jay

    p.s. Split testing 3 different prices is my favourite method, but it's not easy to do this and keep customers happy, so tread carefully if you are split testing the price to start with.
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  • Profile picture of the author optomathematgineer
    I agree with Jay. Sell it as it is worth. Another thing you can do is to check out your competitors with similar products. Find out how much theirs cost. It your product and their is the same thing, try to price a bit lower to gain some pricing advantage. If the quality of your product is higher than your competitor, then you can ask for more. Try to give promotion or member discount time to time attract buyers.
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  • Profile picture of the author GMD
    Banned
    Price your product to SELL.
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  • Profile picture of the author superowid
    Make a test. Start it with lowest price. Than go up after 2 weeks later. And go up again for the highest the next 2 weeks. Then choose the one you make the most for your next month. And stick with it.
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    • Profile picture of the author Wax
      With 7's
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      • Profile picture of the author Suthan M
        I always start my cheapest lowest products at $47.

        I always bring them up to at least $197.

        i always love to think of a way to make it $497 and above...

        Selling cheap is not the way to go- you will be scraping the end of the barrel- by going high- you will be getting high quality buyer, better profit margin( which can be re-used to create more better products), and also-get 'authority' status



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    • Profile picture of the author 7_8_shortcuts
      Originally Posted by superowid View Post

      Make a test. Start it with lowest price. Than go up after 2 weeks later. And go up again for the highest the next 2 weeks. Then choose the one you make the most for your next month. And stick with it.
      This is a good strategy IMO... but sometimes it's just a bit weird to previous customers who paid the higher price point to see the product being discounted soon after they bught (in case the higher price didn't convert well)
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  • Profile picture of the author Jared Felt
    I'd look at what my competitors are pricing similar products at, survey your market and see what they would pay, and in the end...split test and see what get's you the best conversion.
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  • Profile picture of the author John Romaine
    I was told some time ago by an established internet marketer to always start LOW, then work upwards. Start at 17, then move to 27, 37 and so on. Test at each price range for at least a month before making any decisions. Over time you will establish the best "selling" price range.

    NEVER use cents, eg $27.99 as "visually" it looks more expensive - and stick with ending your prices in "7" Apparently its been proven as the best "phycological" selling figure. Another bit of advice I would offer is that a) if you decide to change your pricing in order to "test" buyer reaction, make it significant, no point in changing it by $5 b) allow sufficient time (at least a month) for each test.

    Hope this helps.
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  • Profile picture of the author lenlatimer
    Hi,
    Write down your first instinct and then double it.
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  • Profile picture of the author Simon Lim
    Look at what similar products in the market are going for, then add more value to your product so you can charge a higher price.

    If a similar product is going for $27, you shouldn't throw out something that's the same and charge $47 for it. Ask yourself how you can add more value to your product so that if you do charge $47 for it (or whatever price it is) the customer will feel like they just got a bargain.

    Simon
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