Is My Price Point too High for My Market?

by momtraders

Posted: 12 years ago 7 replies

INTERNET MARKETING

I am leasing premade localized communities to my visitors. My site niche is MOMS.
Each site is really turnkey because not only is it automatic, but it generates a residual income for the owner. hands free.

So my question is, I am asking $47/mo to lease out my sites.
Do you think this price point is too high? too low? just right?

When dealing with moms it can be a bit different, because finacially they may depen on their spouse etc.

Also, how do I jumpstart this thing?

I figured I would do joint ventures, but I am getting intimidated about contacting potential jv partners.

Any and all feedback is helpful, my husban has no idea what to say when i question him what he thinks, and feedback is my life blood :~)

Thanks

#high #market #point #price

Prashant_W 12 years ago

One word. Test.

Seriously, it's the only thing that'll give you an answer.
- Thanks
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momtraders 12 years ago

lol, that is funny, my best friend just said the same thing to me.
How do you test your price points?
Sorry for seeming so naive, but this has been a true journey thus far.
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elexmedia 12 years ago

The best and easiest way to set up your price is by looking at competitor's price.

Just see other sites/ business that similar with yours and have a good sales, and copy it's price. The price is guaranteed accepted by the market and convert into sales.

If you can't find other business, you could do A/B Test.
First, send traffic to the offer and see how much traffic that convert into sales. Second, send the exact amount of traffic to the offer's page, but with lower/ higher price, and see how much traffic that convert into sales.
Just test, test, and test. In the end, you will find price that gives the most conversion.
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Signature

Find it on:
WSO360.com
under 'Make Money Online WSOs' Topic at 9 July
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momtraders 12 years ago

I like the split testing idea. I found another businss offering something similar and his price point seemed ridiculously high at $350/monthly, but nothing comes close to what I have really prepared and again my market is stay at home moms, their budgets are not very forgiving.
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- Alexa Smith Banned 11 years ago
  
  Originally Posted by momtraders
  
  I found another businss offering something similar and his price point seemed ridiculously high at $350/monthly
  
  If he makes 25% of the number of sales that you do, then maybe it's not so "ridiculous"?
  
  For every 4 you sell, at $47 ($188) he sells one at $350 and earns almost twice as much as you, overall?
  
  Maybe!
  
  This is why you have to test. And that doesn't mean just reducing the price to see if you get more sales. It means being open to the possibility of significantly increasing the price and seeing what proportion of your sales you retain. Best to test without too many starting assumptions? Price flexibility is an unpredictable creature. But your question asks only whether your price point is too high, and that alarms me, as a marketer.
  
  I suspect, though, that a bit's going to depend on how your clients can themselves monetize the sites you're leasing out to them, and I don't understand enough about your business model to comment beyond generalizations.
  
  Thanks
  
  1 reply
  
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  jasonl70 11 years ago
  
  Originally Posted by momtraders
  
  my market is stay at home moms, their budgets are not very forgiving.
  
  that is not a safe assumption.. there's nothing inherently "financially tight" about being a mom, or being a stay-at-home mom.
  
  It seems more likely that it's you who have segmented out the financially strapped as your target??
  
  Something else to consider: while 350/mo might seem crazy or even outlandish to you, that doesn't mean it is for everyone else. We have a Lamborghini dealership here in Columbus ohio - not a single one of the sales people can afford one. but that doesn't stop them from selling them
  
  Thanks
  
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  -Jason
  
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asame54 11 years ago

Hi!
It depends where you live, and who are your customers. The important thing is you need good customers who are willing to pay to your offer.
I wish you all the best.
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