I've noticed that in my niche, trading, some competitors are now copying product launch style business models; many with horrible products, all uniformly priced at the magic (too high imho) $1997 price point w/affiliate contests etc, like the IM crowd pioneered 5-7 years ago.
Is it just me, or is trying to make $2,000 upfront sales in the world's worst economic climate in 50 years, a) a bad deal for customers, and b) overpriced, and c) simply not the right way to do business?
From what I'm told, my competitors who use this model are accustomed to horrible 25%-28% refund rates, and are now starting to use "conditional refunds", eg "send me brokerage screencap proof you actually tried to use this for x weeks, and then we'll give you your money back". I think conditional refunds are wrong, as is pitching things way up at $1997 price points with the 4-video launch model, from what I've seen offered.
Making apple-to-orange comparisons like getting the price of getting a college degree, compared to their junk offerings, to price-justify, is misleading and who would "buy" that pitch line anyways?
Now IF the offering was something by a) people with credibility, proof and testimonials, and b) included high-value content, like regular coaching webinars (that's something I do for all my high-end products), Then I could understand $1997 or similar price points. But charging $2,000 for simple access to downloadable videos? wtf. Who in their right freaking mind pays that much money for stuff?
I mean I'm well-off, my business is successful, I've spent 10k+ per year on instructional stuff in years past, but at more reasonable price points, like $295-$795 for multi-dvd courses, lots of books (all under $30), and membership video access sites (up to a few hundred).
So I understand, exceptionally well, how to launch high-ticket items (I've done so for over a decade); but frankly in my niche I've seen overpriced garbage, that's not even worth $300-$500 imo, much less $2,000. Are people mesmerized by $1997 prices, and find value at that price point, for big-ticket items, anymore? It seems so, now I'm seeing even up to $3000 product launches.
How about You? I'd rather incrementally buy modules of stuff at $200-$300 if I found value in it, rather than $2,000 upfront, as that's a fortune. Just like I thought those "large" IM seminars that were thinly disguised pitchfests that charged $1k-$2k were a rip (they've since disappeared, mostly - thankfully). I'm a value buyer, and many people who are smart, also are in this economy. For me to charge $2k+, it would include personal phone coaching calls or other high-value content, at least that's how I see things.
I'm really good at pointing out the elephant in the room, I kill my competition with that. Is it just me, or is it time for the "death of overpriced $1997 stuff?", in favor of modular lower-priced courses? I'm just beyond puzzled why someone would buy something for 2 grand. And I can afford it. Part of staying wealthy, is not overspending. Invest in yourself, sure. For 2 large I could buy 70 300-page books from world's top experts, a big library to learn from. Or a few hours of video. Sheesh. Thoughts, folks?
p.s. back in the 2005-2007 era here, I brought up similar questions about the $2K IM seminars, and finally most of those went away, as people realized they were being "took". Sure, create an avatar, recruit high-list size jv buddies, do reciprocal launches, but offer value. And yeah that's in the eye of the beholder. The koolaid of overspending and "you've gotta take action" wears thin when value proposition is low.