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

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.

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.

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...

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!

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.

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

Try to do comparison in terms of your product and price with other similar type of product.

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.

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.

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.

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.

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...

Glad I could help!

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!

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!"