Price high then justify?

15 years ago

The best way to do this is to study other products in the same market and see what their price is. Then check out the product and compare it to yours. If you feel you are better than price it a bit high.

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Steve L

15 years ago

Originally Posted by ryanman

The best way to do this is to study other products in the same market and see what their price is. Then check out the product and compare it to yours. If you feel you are better than price it a bit high.

once you set your price though, do you not want to change it much, or does it not matter?

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ryanman 15 years ago

Originally Posted by Steve Longoria

once you set your price though, do you not want to change it much, or does it not matter?

Keep the same price for the old customers and change it for the new ones. If it's recurring billing.
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MeTellYou

15 years ago

Originally Posted by ryanman

The best way to do this is to study other products in the same market and see what their price is. Then check out the product and compare it to yours. If you feel you are better than price it a bit high.

exactly. the price does not really matter if you're able to justify the value, but you do have to see what the market is doing.

Sebastian

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Steve L

15 years ago

Originally Posted by ProductCreator

I agree with ryanman. Price it similar but then make sure you do split testing afterwards, even if you have already launched.

You'll only know after about 50 sales or so but another price point may well be more profitable.

thanks for the advice, greatly appreciated

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Kyle Tully

15 years ago

You can't answer the question of price without first looking at your strategy and where this product fits into your business.

Is it a lead generation product?

If so, are you willing to break even to get more customers, or do you want to make a front-end profit?

Or is it a backend product?

What are the margins?

How do the numbers run -- conversions, break even etc.

How will you market it?

Are affiliates involved? If so, what kind of commissions will they earn based on your price and commish rate?

What your competitors charge is largely irrelevant and if you base your price on what they charge you'll likely go broke... or at least not be as profitable as you should be.

Remember, they're pricing for their strategy and numbers NOT yours.

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Loren Woirhaye 15 years ago

at a certain price-point Elitism will kick-in and some
people will buy, if your marketing is effective, just because
the price is high-enough that many others cannot own the
product - so the buyer gets an ego-boost from feeling
he can spend more than others... sort of like owning a
very nice car - a form of showing-off earning power to
others...

Also if your product conveys a particular advantage -
in marketing, dating, dog-training, etc... then you
price high and justify so the buyer at that price can
feel good about his purchase. Putting a nice thank-you
letter in the box, or a follow-up call, can reduce refunds
to almost zero if the product delivers on it's promise,
even if the price is pretty outrageous for the going-rate
in your market.
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Sandor Verebi

15 years ago

Originally Posted by Kyle Tully

You can't answer the question of price without first looking at your strategy and where this product fits into your business.

Is it a lead generation product?

If so, are you willing to break even to get more customers, or do you want to make a front-end profit?

Or is it a backend product?

What are the margins?

How do the numbers run -- conversions, break even etc.

How will you market it?

Are affiliates involved? If so, what kind of commissions will they earn based on your price and commish rate?

What your competitors charge is largely irrelevant and if you base your price on what they charge you'll likely go broke... or at least not be as profitable as you should be.

Remember, they're pricing for their strategy and numbers NOT yours.

Agreed. To forming the suitable price is necessary the analysis of your actual situation.

One more thing. If you are stiring high expectation in your sales letter and the product will not delivers accordingly, then your refund rate will be high.

_____________
... coming

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artwebster

15 years ago

This question of pricing has been giving me head aches for some time.

The current thinking on pricing seems to be that no matter how valuable, unique or income boosting your product is, you should give it away or sell it for peanuts.

Not so very long ago it was common for the price of an every day product to be set at $97 with very little in the way of bonuses. Now someone launching a similar product would be expected to give it away in the hope of selling something else 'on the back end' or to sell it for $7 with a bonus valued at $000s.

These formulae are generated to sell courses by 'names' in the internet marketing world and, I think, to keep the level of real competition down. After all, how much competition can there be if all new products are free or nearly free?

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Steve L

15 years ago

Originally Posted by artwebster

This question of pricing has been giving me head aches for some time.

The current thinking on pricing seems to be that no matter how valuable, unique or income boosting your product is, you should give it away or sell it for peanuts.

Not so very long ago it was common for the price of an every day product to be set at $97 with very little in the way of bonuses. Now someone launching a similar product would be expected to give it away in the hope of selling something else 'on the back end' or to sell it for $7 with a bonus valued at $000s.

These formulae are generated to sell courses by 'names' in the internet marketing world and, I think, to keep the level of real competition down. After all, how much competition can there be if all new products are free or nearly free?

see, that's the thing... you can almost always find the information you are seeking for free. the only reason people will spend money on a product that promises a shortcut to the desired information, is because there are two types of people in this world when it comes to this...

(1) those who will never spend a dime on information, no matter how much effort it takes to gain the knowledge on their own... then (2) there are those who would rather purchase a book written by an expert in the field of expertise they are seeking. no matter how much free info they find, the information they have to PAY for will always seem better, or perhaps contain some kind of secret information, right? I mean, they're charging money for the information, it MUST be good.

so don't chase the people looking only for free information.

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Kyle Tully

15 years ago

Originally Posted by artwebster

This question of pricing has been giving me head aches for some time.

The current thinking on pricing seems to be that no matter how valuable, unique or income boosting your product is, you should give it away or sell it for peanuts.

Not so very long ago it was common for the price of an every day product to be set at $97 with very little in the way of bonuses. Now someone launching a similar product would be expected to give it away in the hope of selling something else 'on the back end' or to sell it for $7 with a bonus valued at $000s.

These formulae are generated to sell courses by 'names' in the internet marketing world and, I think, to keep the level of real competition down. After all, how much competition can there be if all new products are free or nearly free?

I GUARANTEE YOU no one (at least no one doing this properly and making money) is "hoping" to sell something on the backend of a free/low-ticket trial offer.

They have a killer front-end offer that gets lots of people in the door AND they have a proven back-end offer virtually guaranteed to make money.

But WHO CARES what anyone else is doing?

There's usually more money to be made doing the opposite of what everyone else is