$47 or $97 What's the difference?

by Andy Money 30 replies
What's the difference between charging $47 for a product and $97? I'm trying to figure out how much to charge for a product I'm putting on CB. My first CB product! !
#main internet marketing discussion forum #$47 #$97 #difference
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  • Profile picture of the author dvduval
    I would say it depends on whether profit or buzz in more important.
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  • Profile picture of the author Kyle Tully
    $50



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  • Profile picture of the author tommygadget
    Opened this thread to say 50 bucks. Oh well, next time. I bet you're the guy who posts "first".

    TomG.
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  • Profile picture of the author Daniel Scott
    Pricing should be whatever nets you the most profit (although that may be short or long-term depending on your business model). There's a sweet spot here - too low and people will think your product's crap, too high and they can't afford it.

    That sweet spot is different for every market.

    -Dan
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  • Profile picture of the author Lance K
    Originally Posted by mrsleep99 View Post

    What's the difference between charging $47 for a product and $97?
    Value and/or Strategy.
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  • Profile picture of the author Wan Muslim
    High value = high price
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    • Profile picture of the author TheRealDomainer
      The differnce is in the number of people you target to have the product.
      The money is in the backend though.
      The differnce is a combination of lots
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    • Profile picture of the author Sandor Verebi
      Depends on many things such as your goal, your niche, quality of product, targeted market, demand of market, etc. You need to know what do you want to attain.
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      • Profile picture of the author AndrewCavanagh
        Yeh I was going to say $50 too.

        Do we get some kind of prize for answering this?

        There are MANY factors to consider in pricing.

        Let me give you a few.


        1. You might take just as much or more money with a higher priced product
        which means less customer support and often customers who buy at a
        higher price are less trouble.

        For example for each 500 visitors you might sell 10 $47 products and
        make $470 in sales.

        Or you might sell 5 $97 products and take $485.

        After transaction fees you make more money with the higher price BUT...


        2. If you have a serious back end selling process you may make FAR
        more money by letting more customers into your funnel at the lower
        price.


        3. In some cases selling a higher priced product can give you more credibility and make it easier to sell high priced back end services.

        Also in some cases and some niches higher priced products actually sell better because they have a much higher perception of value.

        Kindest regards,
        Andrew Cavanagh
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  • Profile picture of the author keithakin
    Why does the price need to end with a 7? Why can't it be $43? Or something other than a 7?
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    • Profile picture of the author JohnMcCabe
      Originally Posted by keithakin View Post

      Why does the price need to end with a 7? Why can't it be $43? Or something other than a 7?
      My guess is that stems back to Mark Joyner's original "Confidential Internet Marketing Intelligence Report", which he published several years ago. In the report, Joyner points to some testing he did that had the highest response with a price ending in 7.

      So many products have been priced that way since then that it's become the standard. People in the IM market niches have come to expect it the same way the rest of the population (at least in the USA) expects prices a few pennies under a break point. I.E. $9.99, $19.99, $49.99 etc.

      Joyner also had some test data about the best days to email certain things (like offers vs. information). I'll bet if most of us checked our inboxes, the days would be obvious...
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  • Profile picture of the author Vyliss
    7 is the perfect number... why don'y we use .99c and the like in IM ?
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  • Profile picture of the author Chris_Willow
    $47 or $97?
    I'd say go for $297 and be one of the 'top'

    Chris
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    • Profile picture of the author Steven Wagenheim
      Well, all the comics here took the easy cop out answer of $50 so I'll put it
      this way.

      The difference is 5260.9425 Yen.

      All kidding aside, it's called perceived value.

      A person is likely to feel that a $97 product is going to give them more value
      than the $47 product.

      However, some people will be less likely to buy the $97 product because it
      is out of their price range and will go with the $47 one because they can
      afford it and will feel it will be good enough.

      It's kind of like the people who go to the supermarket and get the no frills
      brand of tissue instead of Kleanex because they fell it will be good enough
      and just can't afford the Kleanex.

      There's way too much psychology to get into in a forum post, but I will
      say this much...if you're going to price your product, take a look at what
      the competition is pricing their comparable products at. If they're all selling
      for around $47 and you decide to price yours at $97, you better show in
      your sales copy how your product is $50 better or you're not going to
      make many sales, if any at all.
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  • Profile picture of the author AlexKaplo
    Hey there mrsleep99,

    It's very hard to explain how you price your product as it depends of many factors such as how your think your product is really worth and how much do your think your targeted audience will pay for it. You can also price your product much higher then your competitors as it will make your product "look" as the higher end product of your niche.

    But here's something you should really keep in mind when your price your product and that is it's always harder to convince people to pay a higher dollar then a lower dollar. You should really price it depending on your advertising budget. (...Or not if your not going to pay for traffic)

    Also don't forget you can always charge $67 which is another key price point that has worked very well for many internet marketers.

    Hope this helps and good luck with your project!


    Regards,

    -Alex Kaplo
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  • Profile picture of the author Loren Woirhaye
    It depends of the niche, too. A lot of people come on
    the Copywriter's forum here and they have this ebook they
    want to sell for $47 or more and I can go on Amazon and
    find a REAL BOOK with a lot of favorable reviews for $20
    or less.

    So it becomes a real value proposition and a matter of
    positioning in the marketplace, too. If you can offer something
    as a bonus - related software for example - then you
    can really stand out in the marketplace - even if your
    actual info-product is inferior and less detailed than than
    popular REAL BOOK on the topic which might run 50-100,000
    words or more... a lot of writing and editing and usually
    the result of significant research.

    I don't want to confuse the issue... just be aware that
    people looking at your niche may or may not be as stupid
    as you think they are.

    Like a lot of things, it depends on the niche... and I totally
    recognize that even if your product offers amazing value
    and is affordable, affiliates are motivated by greed and they'll
    be more likely to promote the product that is more profitable
    to them.
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    • Profile picture of the author Flyingpig7
      Hello MrSleep99,

      Yup I agree with Steven.
      I am much more likely to look at a $47 dollar product & to compare it with similar products before deciding to buy it. Also I will look on this forum to see (2 things you're known to others, they have bought it) & if you have a WSO (cheaper offer, in exchange for a testimonial), before buying it.

      In addition I'm not fond of very expensive ebooks, vids etc.. products as I look at this way if I can get a paperback book from WHSmiths/Amazon for £5, a hardback for £15 a University/Technical book for £30 I sure as hell need to be convinced that $235 is worth it for something I have never seen or touched.
      I'm afraid outside the IM world that is perhaps how a lot of people seaching the net for information are going to look at it. Perhaps you can get away with those prices if
      A) You're a Guru
      B) Only producing products aimed at the IM market because the industry is already conditioned to expect it.

      Just my 2 cents worth hope it will help you decide.

      (Gotta laugh at my own rant!)

      Keren
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      Have a great day

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      • Profile picture of the author Andy Money
        Thanks for all of the advice guys. Since it was brought up/asked the niche is practically empty (to my knowledge) and I'm the only one in it. I'll try split testing maybe .
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        • Profile picture of the author sylviad
          Actually, not all high priced products are IM. Business products can bring a good price. For instance, a product that reviews a particular type of business model and gives stats as to how that business succeeds. Someone here did a thread on this recently. Can't recall who. He posted to say someone paid a huge sum for this report, because it was so focused, specific and in demand.

          Some niches just aren't high dollar. Many factors come into play, as has already been detailed, including perceived value, quality of product, uniqueness of the information it contains, potential success that can be achieved with that specific information.

          Consider how difficult it is to find that information. That will make a huge difference in pricing, too. Some people will pay hugely for info that's hard to locate.

          Why "7"? In some instances, using an odd number is actually funny. Compare... there were 90 people squabbling over the antique... and there were 37 people squabbling over the antique. For some reason, odd numbers put a different spin on things, and it even depends on which odd number you choose. 35 probably isn't as funny as 37.

          Ok. That example wasn't THAT funny, but my husband often brought a chuckle by using certain odd numbers, and this was his explanation.

          My suspicion is that 97, 67, 37 is more desirable, because people are less likely to jump up to round it off. If it's 99, they'll say 100, which suddenly gives the price a whole new perspective.

          You can be sure there's some valid psychology behind it.

          Sylvia
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  • Profile picture of the author AlexKaplo
    I think your best bet man is to test it our for yourself and see first hand what the result will be, you definitely CANNOT go wrong doing this...


    Regards,

    -Alex Kaplo
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    • Profile picture of the author julesbrad
      Something else to think about.

      Andrew said
      "For example for each 500 visitors
      you might sell 10 $47 products and make $470 in sales.
      Or you might sell 5 $97 products and take $485."

      but what you also have to think about is, if you have greater sales from the lower priced option, then you have a larger list of people who will be more receptive to future offers from you as they have already bought from you
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  • Profile picture of the author Loren Woirhaye
    I've certainly had the experience of buying something
    from a vendor and not being too impressed - feeling I
    overpaid for what I got... and in that case am I motivated
    to do business with the guy again?

    No. probably not. "Fool me once" - as they say.

    I sell some pricey stuff myself so I am the pot calling
    the kettle black here to some extent. I look at a lot
    of how this IM affiliate stuff is being done with these
    $97.oo ebooks and then I look at what Warrior Chris
    Rempel is doing with his good-as-gold ebook for
    $27.oo and do you think he's gotten me to buy other
    reports from him? Yes - because I felt I got good
    value for a fair price.

    I don't want to put him on a pedestal... I just think
    his approach is smart.
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  • Profile picture of the author talfighel
    With the $97 for the product, you can make more money BUT your sales will go down because not many people will want to buy for such a high price.

    So I would go with the $47 because it will do much better.

    Now, should you want to increase the affiliate commission and give your affiliates more of the sale, you will make more money.

    Don't offer $20 commission for a $47 product because people will not sell it for that amount. If you give them $30+ then more and more people will sell and have your product on their website.

    Tal
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