CHARGE MORE!!!! People will pay for it!

108 replies
You're as valuable as you perceive yourself to be.

Stop nickle and dimming on $7 e-books... nobody gets wealthy that way.

The more you charge, the more tolerable your clients will be. The ones who gripe about paying $20 for a course are NOT the clients you want.

It's better to have 2 clients at $50 than 20 clients at $5.

-Adam
#charge #pay #people
  • Profile picture of the author crystalq
    I'd rather have 20 clients @ $7.00 because that's 18 more ppl I can upsell to.
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    • Profile picture of the author Adam Nolan
      True... but how likely is it that someone buying a $7 e-book is going to buy a $500 continuity program?

      Also you run into problems with more clients taking up your time asking for refunds, or not getting their download or having questions... time that you're not being compensated for.

      But I do see your point and it is valid.
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      • Profile picture of the author crystalq
        Originally Posted by Maverick_ View Post

        True... but how likely is it that someone buying a $7 e-book is going to buy a $500 continuity program?
        not very likely, LOL.
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      • Profile picture of the author JayPeete
        Originally Posted by Maverick_ View Post

        True... but how likely is it that someone buying a $7 e-book is going to buy a $500 continuity program?

        Also you run into problems with more clients taking up your time asking for refunds, or not getting their download or having questions... time that you're not being compensated for.

        But I do see your point and it is valid.
        You both have good points of view. It just all comes down to personal preference.
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    • Profile picture of the author x3xsolxdierx3x
      Originally Posted by crystalq View Post

      I'd rather have 20 clients @ $7.00 because that's 18 more ppl I can upsell to.
      Yes. But, wouldn't you think that the people who spend more, and thus have a bit more of a monetary and psychological tie to the product and your brand, would be more inclined to spread work of it by word of mouth. I recently bought a $400 course to help me review for, and pass, a standardized test I had to take for my licensure test. It lived up to what it promised, and produced tremendous results, so, I told ALL my friends.

      Had I purchased the same course for $7, I may not have invested so much of myself into it. No one wants to spend $400 and give up on a product easily....it's like admitting to yourself that you just flushed money down the toilet. In fact, the more we spend, the more, I'd think, we'd want to justify our purchase by MAKING it work. Those who pay more, I think, will be more than willing to invest more of themselves into seeing results.....and, when they see those results, they'll be more inclined to purchase from you again.
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      • Profile picture of the author Hardi Wijaya
        Originally Posted by x3xsolxdierx3x View Post

        In fact, the more we spend, the more, I'd think, we'd want to justify our purchase by MAKING it work. Those who pay more, I think, will be more than willing to invest more of themselves into seeing results.....and, when they see those results, they'll be more inclined to purchase from you again.
        That, we've to be very careful. There was a blunder by an offline master. He ended up paying million dollars fine.

        Asking people to pay high-price for result-oriented product is kind of risky.

        Now, people do want to pay for results, but the results are many time opposite of their expectation. That's the reality.

        That's why one of the better selling method is to give people the options for sequential buying. That is, they pay a certain amount for certain goals. Want to achieve more goals? -- pay a bit more later.


        Hardi
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  • Profile picture of the author SonnyKing
    Banned
    It's better to have 2 clients at $50 than 20 clients at $5.

    It sure is...
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    • Profile picture of the author Hanz
      Originally Posted by SonnyKing View Post

      It's better to have 2 clients at $50 than 20 clients at $5.

      It sure is...
      And what if those 2 clients want refunds? You get left with nothing.:p
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  • Profile picture of the author JustinDupre
    Yes indeed. Better to go for people with higher income! You can make more money better in the long run.
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  • Profile picture of the author Brian Cook
    I think charging a fairly high price is especially
    important if you're planning to have affiliates
    make lots of sales for you... they expect to make
    a decent return (and lots of them use PPC which
    can be costly).

    Clickbank apparently agrees... "Don't be afraid
    to set a high price for your product, as long as
    you're delivering serious value to buyers."
    Pricing Your Product

    Brian
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  • Profile picture of the author GeorgR.
    I have experienced those people paying "little" money are even worse with trying to bargain and later on demanding refunds.

    If i sell a book or report for $7 the chances are higher that the customer is some ch****ss who will find something to complain no matter what - while the one paying $90 for a product is actually truly interested in using the product.

    I agree it might be wise to target the latter audience and NOT always attract the ones who have to think twice whether to spend $10 on a product or not.
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    • Originally Posted by GeorgR. View Post

      I have experienced those people paying "little" money are even worse with trying to bargain and later on demanding refunds.

      If i sell a book or report for $7 the chances are higher that the customer is some ch****ss who will find something to complain no matter what - while the one paying $90 for a product is actually truly interested in using the product.

      I agree it might be wise to target the latter audience and NOT always attract the ones who have to think twice whether to spend $10 on a product or not.
      George you hit the nail on the head
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    • Profile picture of the author Marian
      And I even sometimes get a complain when giving some products free!

      Marian


      Originally Posted by GeorgR. View Post

      I have experienced those people paying "little" money are even worse with trying to bargain and later on demanding refunds.

      If i sell a book or report for $7 the chances are higher that the customer is some ch****ss who will find something to complain no matter what - while the one paying $90 for a product is actually truly interested in using the product.

      I agree it might be wise to target the latter audience and NOT always attract the ones who have to think twice whether to spend $10 on a product or not.
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      • Profile picture of the author troy23
        I do both - the $7 ebook modell with a $27 upsell on the backend. Other products I price at say $79. I shift a lot of ebooks at $7 and have never had a request for a refund. I think people are more likely to pull out their wallet if they see $7 than $27 or above.....it's a no brainer. If you sell enough it starts to add up.
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        • Profile picture of the author Hardi Wijaya
          One side is for low-quantity high-price selling. The other wants volume sales at cheap price.

          Both can work if you plan your operating cost properly.

          Why are you guys trying to win the debate?:confused:


          Hardi
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        • Profile picture of the author Adam Nolan
          Originally Posted by troy23 View Post

          I do both - the $7 ebook modell with a $27 upsell on the backend. Other products I price at say $79. I shift a lot of ebooks at $7 and have never had a request for a refund. I think people are more likely to pull out their wallet if they see $7 than $27 or above.....it's a no brainer. If you sell enough it starts to add up.

          Yup... it's a great strategy. Upsell conversion rates are WAY higher than cold sell conversion rates. It's very "Russel Brunson" of you
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    • Profile picture of the author psresearch
      Originally Posted by GeorgR. View Post

      I have experienced those people paying "little" money are even worse with trying to bargain and later on demanding refunds.

      If i sell a book or report for $7 the chances are higher that the customer is some ch****ss who will find something to complain no matter what - while the one paying $90 for a product is actually truly interested in using the product.
      Oh that's easy. Just make them fill out a long application to get approved to buy the $7 product. ;-)

      Actually, never mind...if they're that cheap, they'd probably DO it.
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      • Profile picture of the author psresearch
        When Michael Brown runs webinars he uses a really good freebie as incentive to get people to the webinar - but he specifically tells people on the webinar that he can't support the freebies because of the money it takes - and that he has to give priority to existing customers.

        Of the 500+ people we've had on the webinars over the past month or so I've NEVER heard anyone complain about that.

        Also, it dawned on me that software products often provide different levels of support.

        Maybe there's a way to factor that into the $7 vs higher price point?
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  • Profile picture of the author Silas Hart
    I've decided to find an average between wanting people to actually Read my eBooks and wanting to make money from them. Not sure why I feel this way.
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  • Profile picture of the author ShaneRQR
    I agree with the OP.

    From my ecommerce work, I've had a lot of experience with customers in a huge price-range (much bigger price-range than with my online/digital products).

    The customers who suck up the most amount of support-time and do the most bitching and griping are almost inevitably those who made two-digit orders, not those who made four-digit orders...
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  • Profile picture of the author Hortensia
    Have a strict 'no refund policy' when the price is very low. That's quite acceptable, everybody understands. Use paypal.

    If somebody like Bryan Kumar can come up with good info products that are reasonably priced, I really wonder. I have unsubscribed from all the 'usual suspects' lists with their $1997 products. They get a bit boring and predictable. At least that's what I think.

    Oh dear ... not another $1997 pitch in my mailbox! Thank you very much.

    The same counts for 'homestudy courses' with 20 dvd's ($997) or membershipsites ($97).
    Who needs all this 'waffle' and 'handholding', if you can read the bottomline much clearer in a 20 page cheatsheet report priced $ 7 - $ 27?
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  • Some food for thought....

    All marketers are aware that 1,000 x 1,000 = 1 million


    Sell 1,000 units of an item priced at $1,000 and you've got a million bucks.
    Sell ~650 units of an item priced at $1,495 and you've got a million bucks.

    And for all the $7 pricepoint fans who posted above.....

    Sell ~140,000 units of an item priced at $7 and you've got a million bucks.


    ps.....

    I've noticed that a majority of launches by A-list marketers
    sell product at the $1,395 to $1,695 pricepoint
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  • Profile picture of the author Zeus66
    Different strokes for different folks. There are plenty of newbie and part-time IM'ers out there who are perfectly content selling in the $7-$17 range and making a few hundred dollars a month. Even someone with minimal knowledge and ability can produce a decent info product in that price range. It's easy to put everyone in the same "I want to be a millionaire" box, but there are lots of marketers in our niche who just want to put some icing on their cake every month without having all the stress and risks associated with huge product launches with hefty price tags.

    Plenty of room for everyone in this here ocean.

    John
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    • Profile picture of the author Adam Nolan
      Originally Posted by Zeus66 View Post

      Different strokes for different folks. There are plenty of newbie and part-time IM'ers out there who are perfectly content selling in the $7-$17 range and making a few hundred dollars a month. Even someone with minimal knowledge and ability can produce a decent info product in that price range. It's easy to put everyone in the same "I want to be a millionaire" box, but there are lots of marketers in our niche who just want to put some icing on their cake every month without having all the stress and risks associated with huge product launches with hefty price tags.

      Plenty of room for everyone in this here ocean.

      John
      John,

      Out of everyone who has replied in favor of the $7 product... I believe this holds the most weight... not everybody wants to do this as a business.

      I sometimes forget that.

      Thank you for the reminder.

      Cheers
      -Adam
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      • Profile picture of the author Vanquish
        Selling products at a lower price of say $10 is better in my opinion because if you truly over deliver on the $10 product the customer will be way morel likely to purchase a $47 or $97 dollar product from you.
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  • Profile picture of the author jhongren
    Thanks Maverick.

    Different buyers have different quality.

    If buyer A buys a $1000 product, from my own experience, he is more committed to working towards his own success.

    For those who buy $7, most likely, the book is for a good read and chuck aside.

    Many of us do that.

    My 2 cents,
    John
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    • Profile picture of the author ScottGordon
      QUOTE: If buyer A buys a $1000 product, from my own experience, he is more committed to working towards his own success. For those who buy $7, most likely, the book is for a good read and chuck aside."

      ------

      Good point, John. Years ago, I used to do marketing workshops for small businesses for $59 (for a 6 hour workshop). The evaluations were fabulous. They loved it. But when I ran into the participants a month or two later and asked what they had accomplished, almost none of them had done anything at all with what they learned.

      Then I started charging $500 for the same workshop (and they, too, loved it in the evaluations) but when I followed up a few days later with a call, everyone had already done something with the material they had learned.

      Since they had already invested $500 in the workshop, they didn't want that to go to waste and, perhaps, they valued the information more simply because it cost more, implying a higher perceived value.

      So sometimes, you're doing the buyer a service by charging a higher price for quality information. They get more out of it.

      Jim
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  • Profile picture of the author rapidscc
    I sell hundreds of products.

    I have items priced from $1 to $57.

    There are days that I sell 2 or more copies of $1 products
    and days when I sell 1 product worth over $20

    Though I like seeing sales stats. I just don't feel happy to
    see $1 sales coming in even if I had 2 or more in a day.

    What makes me jump for joy is when I see those $20 in my stats.

    Those things really make my day.

    All the best,
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  • Profile picture of the author lacraiger
    it would have to depend if your product is crap. lol most of them are.
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  • Profile picture of the author John Atkins
    Originally Posted by Maverick_ View Post

    Stop nickle and dimming on $7 e-books... nobody gets wealthy that way.
    Well that's not really correct. There are big
    companies that have made a fortune from
    selling cheap stuff.

    I do agree that high paying clients are normally better
    than clients who buy only cheap products though.
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    • Profile picture of the author Adam Nolan
      Originally Posted by IM Headlines View Post

      Well that's not really correct. There are big
      companies that have made a fortune from
      selling cheap stuff.

      I do agree that high paying clients are normally better
      than clients who buy only cheap products though.
      Yes, you're right. It was a big generalization on my part.
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  • Profile picture of the author stevecane
    I'd rather have any customers than none!!!
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  • Profile picture of the author MassiveMarketer
    Why not have both types of products. At least you get to earn either of those - low or high priced.
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  • Profile picture of the author Imran Naseem
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    It depends really

    Depends on the product. If you have a high quality product then people will be happy to pay $97.00. For example, just the other day we sold a software for $67.00 and over 90 people paid resulting in sales over $6000+

    Low priced reports and products are good for long-term and list building.
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    • Profile picture of the author edwinkoh
      Indeed!

      The adwords black book was sold for $197 when it came out a few years ago, and I believe .X. got quite a good customer base as a result of that.

      Originally Posted by Imran Naseem View Post

      It depends really

      Depends on the product. If you have a high quality product then people will be happy to pay $97.00. For example, just the other day we sold a software for $67.00 and over 90 people paid resulting in sales over $6000+

      Low priced reports and products are good for long-term and list building.
      But I also agree with Imran when he mentioned that low priced reports are good for building a customer list.

      Really depends on what are you trying to achieve with your product...
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  • Profile picture of the author Alexa Smith
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    [DELETED]
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    • Profile picture of the author Chri5123
      Originally Posted by Alexa Smith View Post

      I do agree with the underlying point of your argument about prices, but I'm afraid you're sadly mistaken in the details and examples you mention.



      Actually many people got wealthy that way. Perhaps you didn't notice.



      On the contrary: it's far better to have 20 clients at $5. There's just no comparison at all: 18 extra people for all the upsells. In the long run, having 20 clients at $5 each is arguably even better than having 2 clients at $100 each.
      I agree with this but in a way you are charging more by getting the upsells.

      It is a bit like collecting emails and building a list - for me anyway this can take away from the immediate front-end sales as they opt in and sometimes do not return, but the amount of sales i get from the follow ups on my list makes it well worth it.

      As long as you have a well thought out business plan and are keeping in contact with your buyers, using upsells and other services properly I agree you could offer your services for FREE and still make a ton of money off the backend materials if done properly.

      Chris
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    • Profile picture of the author Hardi Wijaya
      Originally Posted by Alexa Smith View Post

      On the contrary: it's far better to have 20 clients at $5. There's just no comparison at all: 18 extra people for all the upsells. In the long run, having 20 clients at $5 each is arguably even better than having 2 clients at $100 each.
      If there's no comparison, then you could enlighten us all with stats and facts.

      Also, could you tell us how you set the criteria in the upselling?


      Hardi
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  • Profile picture of the author mario3
    Low price = Low quality? I don't know why, but I get more sales when the price is higher. A friend of me split tested the prices:

    a) $17 - b) $27 - c) $37

    What do you think which price was the best? He tested it for one week and he actually had more sales at $37.
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  • Profile picture of the author ButterflyGarden
    You have to find a balance. If something is priced to inexpensively there is a perception that is cheap. Yet it is also my opinion is to have a larger customer base rather than a just a few who pay a lot, it makes your business stronger because you do not rely to heavily on one customer, if you lose one occasionally it won't hurt your business.
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  • Profile picture of the author sloanjim
    but i've seen people ranting and screaming about $7,$17,$25 products. Some even saying they are "high ticket". The Net does seem a bit of "car boot sale." It is true though..the higher your price the more "qualtiy" customers you seem to get on a whole.
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    • Profile picture of the author Hardi Wijaya
      Originally Posted by sloanjim View Post

      It is true though..the higher your price the more "qualtiy" customers you seem to get on a whole.
      But too many marketers are just being too confused of what make the "quality" customers.

      "Quality" as in the ability to pay high price, or...

      "Quality" as in the ability to stay loyal, or what?

      I encourage you guys to use your brain to rethink.


      Hardi
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      • Profile picture of the author x3xsolxdierx3x
        Originally Posted by Hardi Wijaya View Post

        But too many marketers are just being too confused of what make the "quality" customers.

        "Quality" as in the ability to pay high price, or...

        "Quality" as in the ability to stay loyal, or what?

        I encourage you guys to use your brain to rethink.


        Hardi
        If people REALLY REALLY want something, they WILL pay for it. Many people will say they don't have the money, but, if they really want it, they'll even budget for it.

        ...and, pricing in itself, actually helps to develop a bit of a "loyalty" to you, your product, and brand, as well....IMHO
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        • Profile picture of the author Hardi Wijaya
          Originally Posted by x3xsolxdierx3x View Post

          ...and, pricing in itself, actually helps to develop a bit of a "loyalty" to you, your product, and brand, as well....IMHO
          Let's talk loyalty.

          Is it because customers pay big money to be loyal? Or...

          Is it because customers pay big money and being over-delivered with values, and thus make them loyal?

          Loyalty has many faces.


          Hardi
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        • Profile picture of the author Kirimanjaro
          Originally Posted by John McEachern View Post

          When I first started researching IM as a way of making money, I came across this guy Chris Rempell, who coined the termed Conduit Method for building review web sites.

          I forget how I found the guy, but I remember he had an introductory product for $7 going over his methods. So, I figured, what the heck, $7 is not going to kill me, so I went ahead and bought that. I opted into his mailing list and bought the product. What he delivered in that $7 product was good enough that I was interested in what else he had to offer.

          And, sure enough, he didn't disappoint in having other products that revealed more and built upon the introductory product - at steadily higher prices. So, what I gained from that whole experience is that if someone provides valuable content at a low price, the thinking is there that there will be increased value in paying higher prices.

          The $7 product, or introductory offer, is just a way of exceeding a buyer's expectations so they will buy more and more products, including upsells, down the road.
          I concur with john on this one. there is no doubt that we all want to reap good $$ but I think to do this people need a strategy to pull in the dollars. A low $7 can open up many doors in terms of clients in the short run, which can mean a large client base in the long run. This creates an opportunity to charge the targeted $50 to a larger clientele in future.

          I think it all depends on people's long term and short term goals. By exceeding the expectations of your buyers in the short term you set the stage for a scenario where you have significant influence on them because they kinda trust you. With the trust you are in a better position to charge the $50 for and ebook instead of $7.
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  • Profile picture of the author Underground SEO
    I would also rather charge more, if people join my list then I would rather have heavier spenders than $7 ebook purchasers due to the fact that virtually all of my mail shots would be promoting quite expensive IM products which people who are interested in $7 ebooks invariably will not end up purchasing.
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  • Profile picture of the author adquick
    I've found if you have a product that people want, then you can charge more. People will pay if they are serious about it. You will always get people complaining that its to expensive, but they are normally the people who will give up after a few hours of something.
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  • Profile picture of the author x3xsolxdierx3x
    Originally Posted by Maverick_ View Post

    You're as valuable as you perceive yourself to be.

    Stop nickle and dimming on $7 e-books... nobody gets wealthy that way.

    The more you charge, the more tolerable your clients will be. The ones who gripe about paying $20 for a course are NOT the clients you want.

    It's better to have 2 clients at $50 than 20 clients at $5.

    -Adam
    Adam,

    I blogger I speak to frequently related to me that sales, of his eBook (he sold over $200,000 worth last year), actually INCREASED when he raised his price...not only that, but customers would write to him and actually recommend that he raise his price, and not give away what they perceived as a being very valuable information, for so cheaply.

    The same has been my experience. Pricing, in and of itself, can be a way to secure quality customers.
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  • Profile picture of the author theleader
    If you're going to charge $100 for a social bookmarking e-book that tells a novice the basics of how to use social bookmarking to get traffic to their website, I guess the person selling that ebook will lose all his reputation.

    Price depends on value you offer to your customers.

    If you're selling a $27 e-book, then you MUST provide value of at least $270 else it does NOT make sense for a buyer to buy your ebook or product.

    You need to decide the price as per the value of what you're offering to your customers and not because you think whether they can afford your product or not.

    If you wish to make more money, you need to provide MORE VALUE.

    It has to be proven.
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  • Profile picture of the author abbie kye
    Very interesting thread and very good for those of us just starting out!
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  • Profile picture of the author Leigh Davies
    Provide good content & value & the rest will follow. I know someone who was failing miserably because the price was deemed too low! She raised her price & sales took off.
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  • Profile picture of the author MalloryMedia
    People will see the higher price as a higher quality issue. Most serious marketers tend to use a low-priced report simply to build a list. A list of people who have bought at any price is better than a list of people who have only come for a freebie. Yes, some of them are cheap, but it's much easier to upsell a previous buyer. You don't move them from $7 to $1997 in one step. Give them a $57 ebook next,, then a $197 product, then coaching, then live events, etc. You'll lose some in the process, but you'll gain a great customer base who will spend real money for what you offer. (Assuming you offer a quality product - If you offer crap, the you won;t last too long anyway.)
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    • Profile picture of the author Frodr
      Originally Posted by MalloryMedia View Post

      People will see the higher price as a higher quality issue. Most serious marketers tend to use a low-priced report simply to build a list. A list of people who have bought at any price is better than a list of people who have only come for a freebie. Yes, some of them are cheap, but it's much easier to upsell a previous buyer. You don't move them from $7 to $1997 in one step. Give them a $57 ebook next,, then a $197 product, then coaching, then live events, etc. You'll lose some in the process, but you'll gain a great customer base who will spend real money for what you offer. (Assuming you offer a quality product - If you offer crap, the you won;t last too long anyway.)

      This is what you would call a SALES FUNNEL...

      Its important to understand that a good marketer builds a loyal customer base by graduating your customers from freebie seekers to buyers of a $7 dollar report, then a $47 video course, then a $197 webinar, so on and so forth.

      If you plan on making big bucks you need to focus on creating a sales funnel that can tranform your freebie seekers into loyal buying customers. This is where you can flourish and start making some big bucks. This is what real marketing is about isnt it.

      -Felix

      p.s. - SALES FUNNEL !!
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  • Profile picture of the author theleader
    To some extent, I do agree with the OP.

    He's right. Spot on.

    If you're going to under-price your product or going to sell a product worth $7 only, I guess you're wasting your time and energy.

    Better get paid more than think of making small chunks of money for the same amount of effort, maybe a little extra would be definitely worth it.
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  • Profile picture of the author MichaelHiles
    Value is relative, and what most people don't get in this business is that price is a function of what the person perceives they will get in return.

    If I teach you how to make a million dollars, isn't that worth $50,000?
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    • Profile picture of the author Hanz
      Originally Posted by MichaelHiles View Post

      Value is relative, and what most people don't get in this business is that price is a function of what the person perceives they will get in return.

      If I teach you how to make a million dollars, isn't that worth $50,000?
      Only if I trust you in giving you $50,000 and you don't vanish off the face of the earth after taking my money!:p
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      • Profile picture of the author Hardi Wijaya
        Only if I trust you in giving you $50,000 and you don't vanish off the face of the earth after taking my money!:p
        That's why the method to sell a 7 buck product is different from the method to sell a $50,000 stuff. Small fries and big fishes are not the same.

        For example: When I took over a SEO company, I checked the marketing history thoroughly. Those former monkeys just did most monkeys would blindly do -- advertising big-buck offer online, and hoping someone would take the bait. That didn't work at all. Because companies that are looking for expensive SEO consultation do not just check the website alone.

        So, I virtually forced the manager to get out of the office to do presentations and seminars to the corporate prospects.

        [Addition]
        Some gurus are able to sell $2,000 a pop easily online. Why?

        Figure out the factors first, before arguing.


        Hardi
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  • Profile picture of the author Tsnyder
    I would hasten to remind you all that a guy named
    William Wrigley amassed a fortune selling nickel packs
    of chewing gum.

    If you're focused on the naive newbie make money
    IM market then... sure... price it high and promote
    the heck out of it...

    But... there are MANY markets where substantial
    money is available selling modestly priced how to
    information material.

    When was the last time you walked into Barnes & Noble
    and found anything selling for $1997? They seem to doing
    ok selling books under $50.

    Tsnyder
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  • Profile picture of the author Ryan D
    Banned
    To me, there are two ways of justifying higher prices. Either demand pushes the price up or the product provides better value. If you're just "acting as if", then in my view you're better off selling low priced products until you get there.

    But like others have said, as long as you're not doing the work, there's huge value in selling things lower than your competition. Especially if you're product has any kind of viral nature to it.
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    • Profile picture of the author x3xsolxdierx3x
      Originally Posted by Ryan D View Post

      To me, there are two ways of justifying higher prices. Either demand pushes the price up or the product provides better value. If you're just "acting as if", then in my view you're better off selling low priced products until you get there.

      But like others have said, as long as you're not doing the work, there's huge value in selling things lower than your competition. Especially if you're product has any kind of viral nature to it.
      If you create a course, with several individual products (that can stand alone, as well as apart of the entire course), you can assign individually price "values" to each....and, when added together, they could equated to, say, $400....

      This would be another way of justifying, say, a $97 price point. People would save MUCH MORE buy purchasing the entire course for $97, rather than purchasing each individual separately...this works extraordinarily well....
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  • Profile picture of the author TheBizSeller
    When I see something being offered for $7 I just assume it isn’t worth much.

    Whether you are selling a $7 product or a$7000 product the question is the same - how do you kow that it is worth that amount? Or better yet, how do you know that is all people will pay for it?

    If you never test your prices you are just guessing. (Perhaps it’s an educated guess, but it’s still a guess). I’ve never seen a decrease in sales the first time I rasied the price of a product.

    I understand the logic of selling a low cost product to start with and then upselling. But how to do you know $7 is the place to start? Maybe just as many people will buy your starter product at $27. Maybe not, but you’ll never know until you ask.
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  • Profile picture of the author E. Brian Rose
    I just made another post that is similar in nature, only my post discusses increasing the prices of tangible merchandise. Perceived value by the consumer is a very powerful thing. If your price is too low, then there is no perceived value.
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  • Profile picture of the author John Piteo
    One thing that I don't understand is why the "gurus" like Eben Pegan, Frank Kern, Andy Jenkins, etc. have the $1997 courses, but they don't also sell less expensive, "lite versions" of their courses in the range of $97 to $497 let's say.

    I guess you may say because they don't have to, they already make millions doing what they are doing. Yes, but they are excluding a very large piece of the market that either can't afford to spend $1997 or have not yet developed enough trust to spend that type of money.

    If you can sell 100 products at $1997, why not sell an additional 1000 (maybe) at $97 and later on up-sell those people to the $1997 product.

    Obviously, they know what they are doing, but I'm just curious.

    John P
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    • Profile picture of the author E. Brian Rose
      Originally Posted by John Piteo View Post

      One thing that I don't understand is why the "gurus" like Eben Pegan, Frank Kern, Andy Jenkins, etc. have the $1997 courses, but they don't also sell less expensive, "lite versions" of their courses in the range of $97 to $497 let's say.

      I guess you may say because they don't have to, they already make millions doing what they are doing. Yes, but they are excluding a very large piece of the market that either can't afford to spend $1997 or have not yet developed enough trust to spend that type of money.

      If you can sell 100 products at $1997, why not sell an additional 1000 (maybe) at $97 and later on up-sell those people to the $1997 product.

      Obviously, they know what they are doing, but I'm just curious.

      John P
      My educated guess is that by offering a lite version, the sales of their $1997 version would plummet.
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    • Profile picture of the author Adam Nolan
      Originally Posted by John Piteo View Post

      One thing that I don't understand is why the "gurus" like Eben Pegan, Frank Kern, Andy Jenkins, etc. have the $1997 courses, but they don't also sell less expensive, "lite versions" of their courses in the range of $97 to $497 let's say.

      I guess you may say because they don't have to, they already make millions doing what they are doing. Yes, but they are excluding a very large piece of the market that either can't afford to spend $1997 or have not yet developed enough trust to spend that type of money.

      If you can sell 100 products at $1997, why not sell an additional 1000 (maybe) at $97 and later on up-sell those people to the $1997 product.

      Obviously, they know what they are doing, but I'm just curious.

      John P

      The reason they don't do it is it's WAY too much work on the back end. It requires MUCH more of a time investment.

      Alot of you folks are forgetting the time aspect. If you assign a dollar value to your time, suddenly selling high end products becomes MUCH more profitable because you need to spend less time servicing customers (because you have fewer) and the ones you do have don't require as much of your time.

      ALWAYS ALWAYS ALWAYS factor in the amount of time you're spending / customer. It will give you a MUCH more accurate dollar value as to what your time is worth.

      Cheers
      -Adam
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    • Profile picture of the author psresearch
      Originally Posted by John Piteo View Post

      One thing that I don't understand is why the "gurus" like Eben Pegan, Frank Kern, Andy Jenkins, etc. have the $1997 courses, but they don't also sell less expensive, "lite versions" of their courses in the range of $97 to $497 let's say.

      I guess you may say because they don't have to, they already make millions doing what they are doing. Yes, but they are excluding a very large piece of the market that either can't afford to spend $1997 or have not yet developed enough trust to spend that type of money.

      If you can sell 100 products at $1997, why not sell an additional 1000 (maybe) at $97 and later on up-sell those people to the $1997 product.

      Obviously, they know what they are doing, but I'm just curious.

      John P
      One thing that comes to mind is that they are JVing with people who ALREADY have high-ticket item buyers on their lists.
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  • Profile picture of the author jbento
    I decided some time ago to stop selling $7 e-books. After all, the effort it takes to drive traffic to get visitors for a $7 product is the same it takes for a $47, $97 or even more expensive. So why having all that work to sell $7 products?

    Now, once you have visitors in your site, is easier to sell $7 products if you don't know or don't put effort in your conversions. Or it you don't plan rightly your sales funnel.

    Someone told she prefers a lot of $7 buyers because then she can upsell. I prefer the opposite: get $97 visitors and if they don't buy present downsells.

    But that's me...

    Jorge
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  • Profile picture of the author Dan C. Rinnert
    Originally Posted by Maverick_ View Post

    It's better to have 2 clients at $50 than 20 clients at $5.
    And it's better to have 2 clients at $5 than none at $50.

    You have to go with what works. Some people get rich (or at least make a living) selling trinkets while others do the same selling big-ticket items.

    You cannot look at price alone. There are so many factors that go into it, and price is but one of them.

    Let's say you have a group of 1,000 prospects. Joe has a $50 product to sell. John has some $1-$5 products to sell. Who will have a more profitable day?

    Now, let's say that the venue is a high school football game. Joe is selling an IM product and John runs the concession stand. Who will have a more profitable day?

    Now, let's say that the venue is an online marketing conference. Joe may do better here, but John may do well too.

    The price of the item being sold is just one factor. Other things to consider are wants vs. needs, value, quantity of prospects, quality of prospects, strength of marketing, business strategy, etc. Price alone is not going to be a determinate factor.

    Originally Posted by Maverick_ View Post

    It's better to have 2 clients at $50 than 20 clients at $5.
    Another thing is what if you lose one of your customers? In that case, is it better to have 2 clients at $50 or 20 at $5? If you lose one customer, you'll have either 1 client at $50 or 19 at $5. Who would be better off?

    The bottom line is that each situation carries its own risks, rewards and headaches.

    As for whether "low-paying" customers cause more headaches, the marketing strategies being used to attract buyers may be a bigger factor in that than the price. Let's say you have Mike and Matt.

    For Mike, $20 is like loose change in your pocket. He'll drop $20 on your product, read it and put it to use if it's applicable to him. If it's not applicable, he may not even request a refund, because it was only twenty bucks.

    For Matt, that $20 is the difference between Ramen noodles and tomato packet soup and a more substantial dinner. If your product promised him riches, he's going to need to earn at least his $20 back. He may be more desperate. He may have more questions. He may have a need to back sure he's not spending additional money in vain. Should he buy a domain name? Is this a good domain name? Are you sure this will work? Why am I not seeing results yet? Did I do this right? Is this a good niche? Etc.

    The issue isn't the price, but whether your marketing efforts are attracting more Matts than Mikes. The person with 20 Matts as $5 customers will be more frustrated than the person with 2 Mikes as $50 customers but, conversely, the person with 2 Matts as $50 customers will be more frustrated than the person with 20 Mikes as $5 customers.
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    • Profile picture of the author Adam Nolan
      Originally Posted by Dan C. Rinnert View Post

      And it's better to have 2 clients at $5 than none at $50.

      You have to go with what works. Some people get rich (or at least make a living) selling trinkets while others do the same selling big-ticket items.

      You cannot look at price alone. There are so many factors that go into it, and price is but one of them.

      Let's say you have a group of 1,000 prospects. Joe has a $50 product to sell. John has some $1-$5 products to sell. Who will have a more profitable day?

      Now, let's say that the venue is a high school football game. Joe is selling an IM product and John runs the concession stand. Who will have a more profitable day?

      Now, let's say that the venue is an online marketing conference. Joe may do better here, but John may do well too.

      The price of the item being sold is just one factor. Other things to consider are wants vs. needs, value, quantity of prospects, quality of prospects, strength of marketing, business strategy, etc. Price alone is not going to be a determinate factor.



      Another thing is what if you lose one of your customers? In that case, is it better to have 2 clients at $50 or 20 at $5? If you lose one customer, you'll have either 1 client at $50 or 19 at $5. Who would be better off?

      The bottom line is that each situation carries its own risks, rewards and headaches.

      As for whether "low-paying" customers cause more headaches, the marketing strategies being used to attract buyers may be a bigger factor in that than the price. Let's say you have Mike and Matt.

      For Mike, $20 is like loose change in your pocket. He'll drop $20 on your product, read it and put it to use if it's applicable to him. If it's not applicable, he may not even request a refund, because it was only twenty bucks.

      For Matt, that $20 is the difference between Ramen noodles and tomato packet soup and a more substantial dinner. If your product promised him riches, he's going to need to earn at least his $20 back. He may be more desperate. He may have more questions. He may have a need to back sure he's not spending additional money in vain. Should he buy a domain name? Is this a good domain name? Are you sure this will work? Why am I not seeing results yet? Did I do this right? Is this a good niche? Etc.

      The issue isn't the price, but whether your marketing efforts are attracting more Matts than Mikes. The person with 20 Matts as $5 customers will be more frustrated than the person with 2 Mikes as $50 customers but, conversely, the person with 2 Matts as $50 customers will be more frustrated than the person with 20 Mikes as $5 customers.
      I would STILL rather have 2 clients at $50 even if one dropped off because I'd be spending less time with them, meaning I could be more productive doing other things. If I have 50 low paying clients that's 50 people I have to "babysit" if they need help.

      Money isn't the most valuable currency. Time is.

      Cheers
      -Adam
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  • Profile picture of the author Hardi Wijaya
    I actually find it ironic that some people are pushing hard to win the debate here.

    High-volume low-price selling can work. But you've to plan your operating cost and cash flow first. Do not jump into conclusion telling the world that if Walmart makes millions selling at low price so can anyone. Walmart has deep pocket remember? They can afford to incur loss for a time being and make profit later.

    Low-volume high-price selling can work too. Again, it's about planning the cost and cash flow first. Don't believe? You can ask those traditional antique houses. They can afford not to make a sale for a year or two, and reap in profits in the third year. Just an example.

    Stop pushing around those theories, guys. If it works for you, then it's yours. Let's get back to work and find out what's best for you.


    Hardi
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  • Profile picture of the author alexei_aus
    you have to consider the expectations though. the $5 per month people are likely to stick longer and you can upsell them easier then the $50 people, who might even ask for the refund at the end of the month
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    • Profile picture of the author Adam Nolan
      Originally Posted by alexei_aus View Post

      you have to consider the expectations though. the $5 per month people are likely to stick longer and you can upsell them easier then the $50 people, who might even ask for the refund at the end of the month
      My clients pay $400 a month and I've never had anyone cancel... LOL.
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  • Profile picture of the author Chris Worner
    Why dont people just test and find out what works best for them?


    Chris
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  • Profile picture of the author tommygadget
    Don't guess, test. Does not matter what you think the right answer is. Until you test at least the most common permutations, you won't know what your potential audience is or is not willing to pay for your product.

    TomG.
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  • Profile picture of the author iamchrisgreen
    Originally Posted by Maverick_ View Post

    You're as valuable as you perceive yourself to be.

    Stop nickle and dimming on $7 e-books... nobody gets wealthy that way.

    The more you charge, the more tolerable your clients will be. The ones who gripe about paying $20 for a course are NOT the clients you want.

    It's better to have 2 clients at $50 than 20 clients at $5.

    -Adam
    This principle is fine.

    But ONLY on the condition that you can give value based on the price you charge. If it is and you support the people that become your clients, they will become your raving fans.

    If you over charge and under deliver... expect to go back to selling $7 e-books pretty quick.
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  • Profile picture of the author sloanjim
    "Quality" as in the ability to pay high price, or...
    Quality as in being realistic about expectations. Not biting my head off because I didn't email them back within 1 hour or demanding a refund becasue they failed to make money within 20 minutes. Paying their dues.

    The people who are true business people realizing good products/service etc does cost a bit of money. I pay my accountant $1,000+ no questions asked...yet I have people ranting at me for a $27 piece of software. Threatning to "expose me" Calling me scam before I even had the opportunity to reply. It's draining. I am glad I got out of it.

    The people who pay their lawyers top fees to protect their business, knowing generally you get what you pay for. I am talknig about people who really can afford to spend $5,000, $10,000,$50,000 to get what they want as opposoed to the "pretenders".

    You know what I mean. The difference between trying to sell your service to the Jerry Springer crowd or the country club crowd. It's not that difficult.

    "Quality" as in the ability to pay high price, or...
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    • Profile picture of the author Hardi Wijaya
      Originally Posted by sloanjim View Post

      Quality as in being realistic about expectations. Not biting my head off because I didn't email them back within 1 hour or demanding a refund becasue they failed to make money within 20 minutes. Paying their dues.

      The people who are true business people realizing good products/service etc does cost a bit of money. I pay my accountant $1,000+ no questions asked...yet I have people ranting at me for a $27 piece of software. Threatning to "expose me" Calling me scam before I even had the opportunity to reply. It's draining. I am glad I got out of it.

      The people who pay their lawyers top fees to protect their business, knowing generally you get what you pay for. I am talknig about people who really can afford to spend $5,000, $10,000,$50,000 to get what they want as opposoed to the "pretenders".

      You know what I mean. The difference between trying to sell your service to the Jerry Springer crowd or the country club crowd. It's not that difficult.
      I sympathize your situation.

      That's why it's better to seek out potential affluent customers first, before nonsense happens.

      It is said that whenever people do shopping in Beverly Hills, they've to be psychologically ready to pay for outrageous price


      Hardi
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      • Profile picture of the author MichaelHiles
        Originally Posted by Hardi Wijaya View Post

        I sympathize your situation.

        That's why it's better to seek out potential affluent customers first, before nonsense happens.

        It is said that whenever people do shopping in Beverly Hills, they've to be psychologically ready to pay for outrageous price


        Hardi
        Bingo.

        Set up shop on a street corner in the ghetto - don't be surprised when your customers act ghetto.
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  • Profile picture of the author Dayor
    We might be missing something out here, the question to ask is what makes people buy, is it the price, the product, the advert or the sales person......

    The No1 reason is not actually non of the above, its the VALUE. people will pay any amount of money for any product that is valuable for them at the point in time.

    So i suggest instead of reducing the price of your product, just add a value to to it and even opt the price, you will be supprice how much more you will sell.
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  • Profile picture of the author meganeven
    Originally Posted by Maverick_ View Post

    You're as valuable as you perceive yourself to be.

    Stop nickle and dimming on $7 e-books... nobody gets wealthy that way.

    The more you charge, the more tolerable your clients will be. The ones who gripe about paying $20 for a course are NOT the clients you want.

    It's better to have 2 clients at $50 than 20 clients at $5.

    -Adam
    holy crap man, a $7 ebook? lol I agree, if you are a quality writer people will pay for it
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    • Profile picture of the author FredJones
      Yes, people will pay for it - people who can pay will pay for it. And people who want to pay will pay for it.

      My most successful product - a physical one (I affiliate it but am the #1 affiliate for the company that I affiliate with for that in a well-sought and highly discussed and used physical product niche and the company is not the leader but definitely a leader) - has the minimum price of $1950, and the bigger versions are priced at even $3650 and there are ranges in the middle.

      Yes, they sell.

      Can I upsell something to these buyers? Yet to try since I did not even have a list of these buyers till recently (my bad, but I was being lazy - I am a lazy guy anyway at most times). But yes, I don't see why they would not buy from me if I offer them the right kinds of products. And yes, I shall indeed offer them some high-ticket physical product items!
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  • Profile picture of the author francof
    I agree. Price also affects the perceived value of what you offer. If 2 ebooks have the exact same content and just different titles and cover, the one that is sold $50 vs the one that is $7 will be perceived as much higher quality than the $7 one. Not everyone goes for the cheaper price because some people prefer quality.
    It's just how society works, we always associate price with quality.
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  • Profile picture of the author humbledmarket
    Banned
    Originally Posted by Maverick_ View Post

    You're as valuable as you perceive yourself to be.

    Stop nickle and dimming on $7 e-books... nobody gets wealthy that way.

    The more you charge, the more tolerable your clients will be. The ones who gripe about paying $20 for a course are NOT the clients you want.

    It's better to have 2 clients at $50 than 20 clients at $5.

    -Adam
    True but then again those who are able to pay more probably already know how to profit and that means they are only looking for products which can make their business even better.

    So personally my mentality is if I'm launching a new unique method or concept then price it cheap so those who actually need it can afford it since if I price it high anyways those who need it can't afford it and those who can afford it don't know their need for it.
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  • Profile picture of the author Dennis Gaskill
    I understand the premise of your post, in fact, I've proven it to myself thanks to some customers who told me I should be charging more for my first product. I raised the price twice and sales increased both times.

    However, a person can't just raise their price because they decide to increase their self-perception of their value. Higher prices means the product creator has an increased responsibility to deliver value equal to or greater than the higher price.

    Not everyone wants that increased responsibility, and not everyone knows how to increase the value of their products beyond what they are already doing.

    Additionally, lower priced products have their own set of benefits that are more difficult to achieve with a higher end product, especially for beginners. My products range in price from $10 to $197. Believe me, the intent behind them is different. The ten dollar product is to get someone to buy something and have them experience the quality of my work so they'll learn to trust me and buy something more expensive later on. Ten dollars worth of trust is easier to sell than $197 worth of trust.

    Having said all that, I do agree with you that many people underestimate what their knowledge is worth.
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  • Profile picture of the author emini_guy
    Yes, you can sell bigger tag items. Perhaps you even should. Those $7 ebooks will never make you any serious money.
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  • Profile picture of the author Mister Bryan
    When it comes to pricing, especially online, people have no control over the notion that expensive(or pricier) equates better. That's what I learnt from Frank Kern, and it's darn true.

    Then again, the product had better offer quality that's at least ten times what it's priced at.

    Regards
    Lazy Bryan
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  • Profile picture of the author uniquecontent
    Why Only products? It applies to service too.
    We see people do negative marketing and sell same service at ridiculously low price. Of course people get attracted to them and it ends up at poor service, loss to buyer and loss to quality seller. If a quality seller is getting competition from cheap provider then after some time he will be forced to think negative.
    Not only buyer but we IMrs also need to pay attention to quality provider.

    Thanks,
    Ed
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  • Profile picture of the author MichaelHiles
    There is a caveat, I'll give something away for free as an inducement to get on a list.
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  • Profile picture of the author uniquecontent
    Originally Posted by Nathan Segal View Post

    I agree. I just posted a rant on that very subject. It really annoys me when people give away their work for next to nothing. That's a stupid business practice.

    Instead, I like John Carlton's approach which I'm going to use, where he states that you should add more value to your offer and charge more - not less. Charging less will get more sales. It will also murder your bottom line. I'm going to do some testing on this, to charge more for my products - and see what people will pay.

    Thanks for your post.
    Perfect line Nathan. You said words of my heart.
    In fact fears are more deeper i am sure.
    What if a provider is giving you technical support/service at price closer to nothing. Obviously he will be using pirated software because we all know pro softwares are costly. So when one buy such service, actually he is supporting piracy and we all know piracy is supported by whom and whom it supports.
    So we must take care that we do healthy business and at the end of the we want to earn for our families, going this way how can we give em a safe future.
    These are my personal worries and thoughts, No offence. But really we should create healthy competition.
    Cut throat competition is good but competition to cut throat is not good at all.

    Cheers,
    Ed McMillan
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  • Profile picture of the author seasoned
    WOW, I'll be rich! I can start selling M&M packs for $100 each! Nah, how about PER PIECE!?!?!?

    Steve
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  • Profile picture of the author Rifat Mansur
    We all need to keep a balance between everything. Having a lot of people read your hard work but not getting paid enough is bad in a way. And getting a lot of money but not having too many people read is bad in another way. So we should keep a balance.
    Signature
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  • Profile picture of the author fthomas137
    It's kinda sad, imho, that so many things are so cheap here. In the end, it devalues the quality of the products because you now get people griping when they have to pay $20 for a product that is worth $200 or asking for refunds on $5 products because they are uber cheap.

    Many great marketers will be drawn away from the warrior forum, simply because of these factors. Again, my opinion, but what I know, I wouldn't sell for $20 or even $200. Maybe $20,000 just because I know how valuable it is.

    Again, my opinion,

    Frank
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  • Profile picture of the author gkutz1
    James schramko says people who pay more complain less the ones expecting free stuff complain the most.
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  • Profile picture of the author Bryan Kumar
    Pricing is important, obviously. And there's some good advice on this thread, mixed in with some really bad advice. lol

    (Test and) Do what works best for your market / niche. But don't assume anything unless you've seen real, verifiable proof of it...preferably through your own testing and tracking.

    And, also keep in mind that there are some books/reports that guys like Paul Myers and Allen Says have sold for as low as $10 to $30, which have been responsible for creating many of the big names and IM empires that you see around you today.

    Also, some of the big names of today continue to drive traffic to their site by offering a FREE report or video. I just got an email from a big name today, went to the site, and found real good value from the free video. (If you do it right, it works.)

    The worst thing you can do in marketing, and in life, is to quickly throw everything into one convenient group just to support your own existing belief or assumption. Very dangerous!

    There are almost always exceptions to the rule.

    Bryan
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  • Profile picture of the author Steve Peters Benn
    I've just been dealing with tickets for one business that has about 7000ish customers paying a few dollars to a few hundred dollars each a month. Guess who complains the most?

    If you said the cheap customers you would be wrong. They are the second biggest group.

    No - it's people on the free trial.
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    • Profile picture of the author uniquecontent
      Originally Posted by Steve Peters Benn View Post

      I've just been dealing with tickets for one business that has about 7000ish customers paying a few dollars to a few hundred dollars each a month. Guess who complains the most?

      If you said the cheap customers you would be wrong. They are the second biggest group.

      No - it's people on the free trial.
      Exactly!!!
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  • Profile picture of the author copycat
    Banned
    What you say is so on point. But a lot of people feel that the cheaper their product is that they will draw more customers. Because everybody love a good Bargain.
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  • Profile picture of the author RichardDean
    Hello,

    There was a time a guide like this would be selling for 27.00 but as you can see people who can't market keep lowering the price and you see all these 7.00 guides. Just think you have to sell about 4 @ 7.00 to one 27.00 guide. Doing 4 times as much work and 4 times asmany people. Do the math convert 2% of 500 people see who makes more money the 7.00guy or the 27.00 guy? Do the right thing lets get ebook prices back up to where we makereal money.

    500 @ 2% = 10

    10 x 27.00 = 270.00

    10 x 7.00 = 70.00

    38.5 x 7.0 = 269.50

    So at 2% you need about 4 times as many lets say you paid .15 per click

    500 x 4 (times as many) = 2000 x .15 (per click) = 300.00
    you converted 2% for a total of 269.00 but paid 300.00 in clicks

    Do I need to say more

    Stop selling to cheap

    Richard Dean
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    5 Minute Mobile Sites... My Next WSO Comming Soon.

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