How do you usually determine what the price of your product will be?

38 replies
How do you guys decide on a price of an ebook let's say. Is it 19,95 or 47 dollars. Or better yet, why not 97 dollars??? And maybe you can ask 500 dollars for an ebook, some videos and a month of consulting? Or you can't ask 500 dollars?
#determine #price #product
  • Profile picture of the author maggytyger
    I feel that it would depend on what is all included in the offer, and who the audience is. You can't just pull a number out of the sky. It takes careful consideration of all components.
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  • Profile picture of the author Scott Burton
    Originally Posted by AfteraDream View Post

    How do you guys decide on a price of an ebook let's say. Is it 19,95 or 47 dollars. Or better yet, why not 97 dollars??? And maybe you can ask 500 dollars for an ebook, some videos and a month of consulting? Or you can't ask 500 dollars?
    Every product will be different. If there are competing products, keep this in mind, but do not let it define your value.

    Understanding that your product is different from its competition is important. What you can do to set yourself apart from the competition plays a great role in how your price can vary.

    There are many things that go into the value of a product.

    What does the product do for the buyer? Does it make things more convenient, does it increase their productivity, etc. ?

    Next, try to discern a value to what it does for them. If you are teaching someone how to grow 27% larger and tastier tomatoes for 75% of the cost, then you have some solid values to start with.

    It is sad, but true, that a crap product can be sold for a fortune, and a great product may go unsold at a bargain price. It's how much you can convince the buyer to pay that determines the price. The quality of the product can not be judged by the buyer until after they've purchased. (So of course the crap product for a high price will likely see very unhappy customers and a lot of refunds)

    Ultimately though, you need to look at your costs, the market you are approaching, and how you can distinguish your product.

    If I could show you an absolutely guaranteed way to turn $500 investment into $3,000 with 20 minutes a day in 2 weeks. A lot of people would be very happy to learn this. But if I price the product at $2,000 many people won't buy because of how much money that is to them.

    If my target market is the first time homebuyer, and I'm showing htem how to save 5% on their new home, this is worth $5,000 if they are buying a $100,000 home. But most of my market isn't going to be willing/able to spend $5,000 or even $1,000 on my offer, because they need that money to go toward their home.

    I know I haven't given you a formula, and the reason is that it varies so much by your product, your market and your sales copy really.

    I do, however, hope this information proves some aid in your quest.
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  • Profile picture of the author internetaddicted
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    • Profile picture of the author Sandor Verebi
      Hi AfteraDream,

      Don't get me wrong, but you may not to establish the price of your product blindly.

      Before you decide on the price of your product, you need to take time to consider the follows:

      - what kind of niche is you are dealing with
      - do you angle where the fish are
      - who are your audience (age, gender, profession, location, etc.)
      - what kind of demand they have
      - is your product an adequate solution to their demand
      - what benefit has your product: faster, leighter, easier usable, newer, etc.
      - has your product something extra for same demand than your competitor's product
      - what sort of perceived value has your product
      - can you raise this value
      - is it your main product or your backend product
      - what do you want to attain in short therm or long therm
      - and go on...

      ...just naming a few item which has influence on your price and your success.

      I hope it helps.

      Sandor
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  • Profile picture of the author DerrickLamont
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    basically what i do is research it and see what was offered on other sites and look at your product and see if that price is worth it to you...
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  • Profile picture of the author Clark
    Hey, AfteraDream... I'll let you in on a secret but you have to promise not to tell anyone about it, OK?

    Don't sell an "eBook" because they have low perceived value.

    Instead, sell a SYSTEM and be sure to NAME that system.

    Instantly, the perceived value is higher in the prospects mind therefore, you can pretty much set any price to that the market will be willing to pay.

    What if there were 10% of your market share willing to spend $100, $200, $1000 and so on for your system?

    (Look no further than the IM niche as an example in fact, there are premium buyers in every niche who would balk at low priced *perceived low value* products to satisfy their problems because they believe that, "You get what you paid for").

    That way, you wouldn't need to go high volume for the same marketing effort you would take with flogging a <$20 eBook.

    Value is always perceived and never real so I would suggest you subscribe to the theory that "Perception is Reality" like I do and let your customers tell you how much they value your OFFER with their wallets.

    Have fun, test, track, tweak then do it some more.... the results will surprise you.

    Cheers!
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    • Profile picture of the author AfteraDream
      Originally Posted by Clark View Post

      Hey, AfteraDream... I'll let you in on a secret but you have to promise not to tell anyone about it, OK?

      Don't sell an "eBook" because they have low perceived value.

      Instead, sell a SYSTEM and be sure to NAME that system.

      Instantly, the perceived value is higher in the prospects mind therefore, you can pretty much set any price to that the market will be willing to pay.

      What if there were 10% of your market share willing to spend $100, $200, $1000 and so on for your system?

      (Look no further than the IM niche as an example in fact, there are premium buyers in every niche who would balk at low priced *perceived low value* products to satisfy their problems because they believe that, "You get what you paid for").

      That way, you wouldn't need to go high volume for the same marketing effort you would take with flogging a <$20 eBook.

      Value is always perceived and never real so I would suggest you subscribe to the theory that "Perception is Reality" like I do and let your customers tell you how much they value your OFFER with their wallets.

      Have fun, test, track, tweak then do it some more.... the results will surprise you.

      Cheers!
      Wow.. real good advice! I'll develop a system to help people reach their goals.
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      • Profile picture of the author Clark
        Originally Posted by AfteraDream View Post

        Wow.. real good advice! I'll develop a system to help people reach their goals.
        You also have the option of upsells & downsells to add to the pricing equation.

        Information can be packaged in multiple formats I.e. Membership site, PDF, DVD, MP3, Avi/Flv, hard copy, etc. - all of which have a perceived value by your prospect.

        What is worth more...a DVD or a PDF? A Membership site or a PDF?

        All of those formats can and quite often do contain the same information except that the data is in a different format with a higher perceived value.

        If you do have video, consider Kunaki -- CD/DVD manufacturing and publishing service then sell DVD's @ $5.75USD/unit cost to you for a shipped product as a standalone product or as an upsell.

        If you are in the bodybuilding niche then video is the way to go.

        Just don't get A-Rod to endorse your site
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        • Profile picture of the author AfteraDream
          Originally Posted by Clark View Post


          What is worth more...a DVD or a PDF? A Membership site or a PDF?

          All of those formats can and quite often do contain the same information except that the data is in a different format with a higher perceived value.


          If you are in the bodybuilding niche then video is the way to go.

          Just don't get A-Rod to endorse your site
          DVD is worth more than PDF (I think) and membership site is more than PDF (probably)...

          Yes, I'm gonna be in Bodybuilding niche I'm just not sure how to use videos there (except showing exercises..) Sitting and talking about how I did gain weight... hmm....maybe...
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          • Profile picture of the author Clark
            Originally Posted by AfteraDream View Post

            DVD is worth more than PDF (I think) and membership site is more than PDF (probably)...
            That's an interesting observation and one that seems to be universal.

            Same information, different formats = Increased value perception with acceptance for escalating pricepoints.

            You already have the right mindset:
            I'll develop a system to help people reach their goals.
            Find your USP then promote like crazy.

            To your success!
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  • Profile picture of the author Alp Bozkurt
    See the price of the similar ebooks in the market. If they are usually $40, you too sell for $40. Not $30. Not $60.

    But you can put a higher price tag to the same ebook if you add some low-cost bonuses like the audio version, video version, print version of the same ebook.

    Look at the bodybuilding ebooks like vince delmonte etc. They just add some PLR ebooks as bonuses to the actual book and sell it between $77-$107.
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    • Profile picture of the author AfteraDream
      Originally Posted by Alp Bozkurt View Post

      See the price of the similar ebooks in the market. If they are usually $40, you too sell for $40. Not $30. Not $60.

      But you can put a higher price tag to the same ebook if you add some low-cost bonuses like the audio version, video version, print version of the same ebook.

      Look at the bodybuilding ebooks like vince delmonte etc. They just add some PLR ebooks as bonuses to the actual book and sell it between $77-$107.

      Oh.. that's my niche... Yeah, I guess I'll have to add some vids and audio to my ebook. I'd like to sell ebook for 100 bucks or so...
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  • Profile picture of the author Raydal
    Easy. You test the price. Go with your gut feeling and then let the market
    tell you what price they are willing to pay.

    My first ebook I initially priced at $9.95, but it sold so well that I raised the
    price to $14.95, $19.95, $29.95, $37, and then $47. Since sales fell off at $47
    I returned to $37. The market told me that they were willing to pay $37 for
    that product.

    As you get market response to your product you'll get a hard data on what
    people are willing to pay.

    -Ray Edwards
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    • Profile picture of the author AfteraDream
      Originally Posted by Raydal View Post

      Easy. You test the price. Go with your gut feeling and then let the market
      tell you what price they are willing to pay.

      My first ebook I initially priced at $9.95, but it sold so well that I raised the
      price to $14.95, $19.95, $29.95, $37, and then $47. Since sales fell off at $47
      I returned to $37. The market told me that they were willing to pay $37 for
      that product.

      As you get market response to your product you'll get a hard data on what
      people are willing to pay.

      -Ray Edwards
      Didn't think it is good to change price multiple times... hmm..
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    • Profile picture of the author SolomonHuey
      I charge whatever I think my product is worth. And usually people are willing to pay it.

      Originally Posted by Raydal View Post

      My first ebook I initially priced at $9.95, but it sold so well that I raised the
      price to $14.95, $19.95, $29.95, $37, and then $47. Since sales fell off at $47
      I returned to $37. The market told me that they were willing to pay $37 for
      that product.
      -Ray Edwards
      I had a similar experience with one of my early products. I started out selling an ebook at $15, based on pricing by my competitors. But I knew my product was much better, so I increased the price to $20, $30, and finally $50 with no drop off in sales at all.

      I would have pumped it up to $100 if I didn't end up leaving that niche (long story :p). At $100, I probably would have seen a drop in sales, but as Ray said, I could test and see where my profits were after the price change, and adjust my prices accordingly.

      Solomon Huey
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      • Profile picture of the author AfteraDream
        WOw.. lots of comments.. Great.. Thanx all!

        I intend to do videos myself (and only when I'm ripped so that clients would see that my system works..). I want to be the example myself. That's why I think I'll be asking more than 47 bucks for a system I'll create. I know I'll give all I know to clients and I think that is worth a lot
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    • Profile picture of the author Spiritjoy
      Great advice!
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    • Profile picture of the author Spiritjoy
      You should always give the buyer more in value than you receive in money.
      A hapy customer will buy again and spread the word of mouth if they get more in value than they paid
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  • Profile picture of the author g00db0y
    Try to do comparison in terms of your product and price with other similar type of product.
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    • Profile picture of the author marcanthony
      I rarely test my prices...

      My primary focus is on my salesletter. I believe that if my message is strong--I can sell products in any price range.

      That said... I refuse to sale any of my stuff for less than $97--that's my starting point--from there I usually go up.
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    • Profile picture of the author milla
      Yes, I'm gonna be in Bodybuilding niche I'm just not sure how to use videos there (except showing exercises..) Sitting and talking about how I did gain weight... hmm....maybe...
      Yeah, I think if you know the exercises you want to show in your video, you can hire actors (bodybuilders) to do the demonstrations for you.

      You are basicly just selling a bodybuilding routine or techniques and then you just get actors to do the routines on the video.

      Unless you are ripped with muscles or something, I don't know, then you could probably do the demonstrations yourself.
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  • Profile picture of the author Tony M.
    I usually pick a price that seems good to me, then I multiply it by at least 2 or 3 because "spontaneous" pricing is really bad.

    In a recent launch for a new product, I was going to sell it for $27 to $47 before I realized it would actually sell at $250, which it currently does right now.
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    • Profile picture of the author CyndiHester
      I like to look at other similar products, and then put it into a
      system (because I personally think people love systems), and
      then add more content and value. Always trying to do more
      then what I find in a particular niche I am selling.
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      • Profile picture of the author Charles E. White
        There's no way in the world anyone can tell you what price to charge for your item. You have to test and see which price sells the best.

        I had a product that I started out at $19.00, then I did some testing and sold three times as many at $24.95. I even doubled the sales of the $19.00 price at $34.95. So, test and then test some more. Test your sales page, the title, the price and etc, it's well worth the time and effort.
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  • Profile picture of the author abelacts
    As for me, in the beginning, look at what your competitors are charging and you set a similar price for your product. Of course, the delivery method must be the same.

    And then, as Ray said, do a test to let market decide the best price for you. The best price means it gives you the best return on investment, not necessarily the most sales.

    I have not got a chance to read it, Paul Hancox has just launched his new book called Pricing for Big Profits (or something along that line ;-) and it has received great feedback. It's worth checking it out in the WSO.
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    • Profile picture of the author Paul Hancox
      Originally Posted by abelacts View Post

      I have not got a chance to read it, Paul Hancox has just launched his new book called Pricing for Big Profits (or something along that line ;-) and it has received great feedback. It's worth checking it out in the WSO.
      I may be biased, but that's darn great advice
      http://www.warriorforum.com/warrior-...-mistakes.html

      @AfteraDream, there's a whole bunch of factors you need to consider before you decide your price point, including...

      ... what your competitors are charging for similar products,
      ... the knowledge and experience level of your target market,
      ... your marketing model (i.e. is it an initial product in a larger funnel),
      ... how much you intend to pay affiliates,
      ... how you want your product to be perceived (i.e. "cheap and cheerful", or "premium quality for a premium price")
      ... psychological pricing (i.e. offering two or more options for the contrast principle, or having a "decoy" offer)
      ... what you've charged in the past for your products.

      One of the many secrets to pricing is that people will pay based on what they perceive they will get out of the product.

      In other words, what VALUE do you offer them, in exchange for their money?

      People paid $1,997 for Frank Kern's "Mass Control" course in part because they believed they would get a good "return on investment" from it, ie. it would make them loads more money than what they paid for it.

      Also, I strongly urge you NOT TO ASK your potential customers what they'd be prepared to pay. You'll hear that advice a lot, but it's pretty dangerous advice

      Instead, do what Charles E. White suggested, and split test your prices if you have the sales volume, and FIND OUT what they're prepared to pay.
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      • Profile picture of the author AfteraDream
        Originally Posted by Paul Hancox View Post


        Instead, do what Charles E. White suggested, and split test your prices if you have the sales volume, and FIND OUT what they're prepared to pay.

        I'd love to learn more on that.. what is split testing? Is it like having 50 ebooks for 15 dollars, then 50 for 30 dollars then 50 ebooks for 50 dollars and seeing how it sells?

        I'm all new to this internet marketing stuff so thanx a lot guys
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        • Profile picture of the author Paul Hancox
          Originally Posted by AfteraDream View Post

          I'd love to learn more on that.. what is split testing? Is it like having 50 ebooks for 15 dollars, then 50 for 30 dollars then 50 ebooks for 50 dollars and seeing how it sells?

          I'm all new to this internet marketing stuff so thanx a lot guys
          A split test involves splitting your traffic, so that different visitors see a different version of your sales letter.

          So, for instance, if you wanted to test the $15, $30 and $50 price points to see which sold more, Visitor #1 would see a sales letter offering your ebook for $15. Visitor #2 would see it being offered for $30, and Visitor #3 would see it for $50. Visitor #4 would see it at $15, and so on.

          You can get software that does this automatically, and that keeps track of the sales, to tell you which price point works best. (I use my own software for this, but you can also use Google Website Optimizer).

          "Small Changes: Big Profits" (in my sig file) explains all this in a lot of detail, but I'd only suggest split testing for your prices if and when you have the sales volume.

          For example, if you wanted to split test 3 price points, you will probably need 100-150 sales to get reliable enough results.

          I hope this helps!
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          • Profile picture of the author AfteraDream
            Originally Posted by Paul Hancox View Post

            A split test involves splitting your traffic, so that different visitors see a different version of your sales letter.

            So, for instance, if you wanted to test the $15, $30 and $50 price points to see which sold more, Visitor #1 would see a sales letter offering your ebook for $15. Visitor #2 would see it being offered for $30, and Visitor #3 would see it for $50. Visitor #4 would see it at $15, and so on.

            You can get software that does this automatically, and that keeps track of the sales, to tell you which price point works best. (I use my own software for this, but you can also use Google Website Optimizer).

            "Small Changes: Big Profits" (in my sig file) explains all this in a lot of detail, but I'd only suggest split testing for your prices if and when you have the sales volume.

            For example, if you wanted to split test 3 price points, you will probably need 100-150 sales to get reliable enough results.

            I hope this helps!
            Yup, it's helpful... Thanks
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            • Profile picture of the author PeteNY
              Lots of great answers here. Frank Kern's Mass Control has a section on Positioning your Product. I'm just up to that part now. Hopefully that will help me answer that question for my products. That, along with the good advice here. Thanks all!
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  • Profile picture of the author negropay
    I think the issue of pricing as as been settled by the forum administrators.Your price must be such that it must be favourably priced and usually much lower than offers elsewhere.The trick is to price along ebay formatt that is cheap and affordable.Anyway your ebook need not be meaty to appeal to members of the forum.Just lean ,precise and straigth to the point.
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  • Profile picture of the author Sheila
    Compare your offer to other products in your target market, get testimonials, create an irresistible offer, write a killer salesletter, price your product at least 20% higher than the competition, the test and see what happens. Your price is never set in stone. Just give a reason for the increase/decrease in price, and your audience will be ok with it.
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  • Profile picture of the author C.T.
    I know some have touched on it a little bit, but I happen to like the method I learned from Jeff Walker in his PLF (Product Launch Formula) videos, but I've tweaked it for my own personal use (I'm pretty sure J.W. probably didn't create this technique, but it's where I learned it).

    One way to set your price point is to simply ask the people who already exist in your target market or niche...

    If you already have a list, then survey your list. If you don't have a list, you could always ask people in a forum geared towards your niche, offering them your product for free as a beta tester for their honest feedback.

    But don't just come out and say: "Hey, how much would you pay for my product?" If you do, you won't get the truly honest feedback you're looking for. Because even if there is the off chance they would even want you product, selfish human nature kicks in and they will tell you should sell your product for $3 and of course you get the raw end of the deal because you could have sold your product for MUCH MUCH more.

    You could try an approach like this (feel free to put your own spin on it):

    "I'm working with a person looking for beta testers willing to test a product designed to:

    -Instantly turn your demon possessed children into absolute angels
    -Teach your dog how to walk itself and wipe it's paws when coming from outside
    -Do your laundry
    -Wash the dishes
    -Clean the house
    -Mow the lawn
    -Clean the gutters
    -Take out the trash
    -Give you a hard beach body in seconds
    -Make you an instant bazillionaire
    -and make you happy 24/7, 365 for the rest of your life

    This product will leave you the time, energy and freedom to take the vacations of your dreams, spend all the time you want with your spouse and buy anything and everything you've ever wanted and will make you the happiest person/family on earth for a long time!

    It only takes 5 minutes for anyone to see results guaranteed! And if it the product doesn't do exactly what it says it does you get $1,000,000 in cold hard cash instantly for your trouble!


    All selected persons become part of the exclusive beta testers inner circle. That means you get access to this and any other products tested or released from this product maker in the future absolutely FREE.


    All they are asking for is you genuine, honest feedback. The more the better. It can be positive or negative, you can suggest improvements or tweaks. They would also like to know, based upon your use, how much you think others (not part of the "beta tester inner circle") would and should realistically pay for a product that can do all of this?"


    This strategy is by no means new, but I hope this info helps...
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    • Profile picture of the author AfteraDream
      Originally Posted by C.T. View Post

      But don't just come out and say: "Hey, how much would you pay for my product?" If you do, you won't get the truly honest feedback you're looking for. Because even if there is the off chance they would even want you product, selfish human nature kicks in and they will tell you should sell your product for $3 and of course you get the raw end of the deal because you could have sold your product for MUCH MUCH more.

      You could try an approach like this (feel free to put your own spin on it):

      "I'm working with a person looking for beta testers willing to test a product designed to:

      -Turn your kids into angels and stop beating the crap out of each other
      -Stop the dog from taking a crap and pee in the middle of the floor and use the toilet
      -Do your laundry
      -Wash the dishes
      -Clean the house
      -Mow the lawn
      -Clean the gutters
      -Take out the trash
      -Give you a hard beach body in seconds
      -Make you an instant bazillionaire
      -and make you happy 24/7, 365 for the rest of your life

      This product will leave you the time, energy and freedom to take the vacations of your dreams, spend all the time you want with your spouse and buy anything and everything you've ever wanted and will make you the happiest person/family on earth for a long time!

      It only takes 5 minutes for anyone to see results guaranteed! And if it the product doesn't do exactly what it says it does you get $1,000,000 in cold hard cash instantly for your trouble!


      All selected persons become part of the exclusive beta testers inner circle. That means you get access to this and any other products tested or released from this product maker in the future absolutely FREE.

      All they are asking for is you genuine, honest feedback. The more the better. It can be positive or negative, you can suggest improvements or tweaks. They would also like to know, based upon your use, how much you think others (not part of the "beta tester inner circle") would and should realistically pay for a product that can do all of this?"

      This strategy is by no means new, but I hope this info helps...
      I've got an idea... I'll get beta testers from the main site of that niche (it has lots of members). They are interested and they have read other ebooks probably so they will know how good/bad my ebook is. Thanx
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  • Profile picture of the author C.T.
    Glad I could help!
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  • Profile picture of the author gerrihabib
    A great post by Scott B! You always have to consider the quality of the content you're offering and what your competitors are offering to get a good general price to begin with for sure! Selling your ebooks with video products as an additional extra is a great way to spread your information in both formats, and a good way to establish a general pricing system. If you continually add quality information, you can guage its value very easily with your competitors!
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  • Profile picture of the author Davion Wong
    All products are not created equal. You have to take note of a few things:

    1. How much does your prospect perceive your product value?

    2. How much can your prospect afford to pay?

    3. What are your competitors charging for a similar product as yours?

    4. How much content are you providing? Do you have a unique selling proposition?

    Ebooks tend to go for anything between $7 to $97. Videos tend to command a higher price because of a higher perceived value.

    Consultation and private coaching can fetch much higher prices because of the attention and time you get.

    I will normally do some research on my competitors and get a rough gauge of what price to charge. But one thing you must remember, always "under promise, over deliver!"
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    • Profile picture of the author philbowman
      Davion...Good info. there, I particularly like your philosophy of..."under promise, over deliver!"
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