Product Pricing Question

by 622im
8 replies
Greetings Fellow Warriors!

Let me start off by saying I'm not super experienced in IM, and I'm even newer to the Warrior Forum. That being said, I have a method that I've been using for several years now that's generating me some decent income. I'm trying to put together an ebook about it to sell, but I have a pricing question.

Obviously, I would like to get top dollar for my book, but don't want to price it too high so that it's out of reach for most people. Here's my question: How do you know what price point your product should be?

In my mind, the product is worth every bit of $47 (I'm including an audio version, as well as video tutorials) and the user could easily get $47 back the first time they use it. I'm also aware that my own feelings are biased because it's my creation. On the other hand, I think I'd probably sell more copies at say, $10.

How do you know the best price point to price your product?
#pricing #product #question
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by 622im View Post

    How do you know the best price point to price your product?
    Only by testing. And trying to do so with an open mind and not too many assumptions.

    http://www.warriorforum.com/main-int...ml#post7506670
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    • Profile picture of the author 622im
      Originally Posted by Alexa Smith View Post

      Only by testing. And trying to do so with an open mind and not too many assumptions.

      http://www.warriorforum.com/main-int...ml#post7506670
      Thanks for the link!
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    • Profile picture of the author Dustin Lyle
      Originally Posted by Alexa Smith View Post

      Only by testing. And trying to do so with an open mind and not too many assumptions.

      http://www.warriorforum.com/main-int...ml#post7506670
      This is THE most important piece of advice I ever received when I started doing my own (NON IM) products. Though it probably holds true on IM products as well.

      People, for some reason unbeknownst to me, believe that an identical product at a lower price will sell better than a higher price... When I started price conversion testing, I almost pee'd myself when I found that about half of my products actually converted WAY BETTER at higher prices than lower.

      I know this to be fact for services as well... (coaching, lawyers etc etc)
      How many $50.00/hr lawyers do you know? If they existed, would they get allot of clients? Probably not, because the the market would have the predisposition that their services were sub-par and not worth having.

      Also, If you priced your item at, ohhh... $199.99 then as soon as the customer decided it was too rich for their blood, you gave them a choice... "What price would allow me to have you as a customer/client etc?"... They enter their name, the price their willing to pay and their EMAIL... Now you have them on a list and an opportunity to hold them to their word.

      See "Price/quality relationship"-wiki heck.. You should also read the "pricing" wiki.. Excellent stuff!


      The truth is, while most people will tell you to "price the market". This hardly will give you the most price efficiency (biggest bang for the buck). The people in this forum and similar communities, are for the most part :p savvy when it comes to internet marketing. I'm finding in my offline IM mastermind group that there is a HUGE disconnect between most IM'ers and economic science.
      Bridging this gap will give you a TREMENDOUS advantage over most.


      So back to your question... either $47 or $10... Why isn't it worth $197?
      If its in video, and audio and (most importantly) is market proven to do what you say it does, then the product is worth way more than a tip report or micro-ebook that sells for $9.97. Connect with someone, or build identical sales pages split testing the prices. (I suggest 3) Then drive same source traffic to each of them.

      Good Luck!
      Dustin
      Signature
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      • Profile picture of the author 622im
        Originally Posted by Dustin Lyle View Post

        So back to your question... either $47 or $10... Why isn't it worth $197?
        If its in video, and audio and (most importantly) is market proven to do what you say it does, then the product is worth way more than a tip report or micro-ebook that sells for $9.97. Connect with someone, or build identical sales pages split testing the prices. (I suggest 3) Then drive same source traffic to each of them.
        Thanks. Something to think about!
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  • Profile picture of the author napoleonfirst
    If I were you, I would buy s pricing guide at Sitesell.com and see what happens. Or you can go to the Warrior Wanted section, give away 10 review copies and ask them about price.
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    • Profile picture of the author 622im
      Originally Posted by napoleonfirst View Post

      If I were you, I would buy s pricing guide at Sitesell.com and see what happens. Or you can go to the Warrior Wanted section, give away 10 review copies and ask them about price.

      I didn't know about either of those resources, thank you!
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  • Profile picture of the author LGSresources
    The only way you can truly know is by doing extensive testing. Use split testing software and try out two price points for a significant amount of traffic. Drive traffic equally and keep everything else the same apart from price. Work out which one earns you the most money per visitor on average - then test it against another price if you want.

    Personally if you've got audio and video tutorials $10 sounds too low. If I see a product promising loads for only $10 I tend to assume it is all copied from somewhere else, based on PLR or just telling me something I can find out for free elsewhere.

    Kind regards,

    James
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    >>LGSResources.com launches on the 25th October! <<

    Want to know more? Go to LGSResources.com and sign up for updates and exclusive pre-launch freebies.
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    • Profile picture of the author 622im
      Originally Posted by LGSresources View Post

      The only way you can truly know is by doing extensive testing. Use split testing software and try out two price points for a significant amount of traffic. Drive traffic equally and keep everything else the same apart from price. Work out which one earns you the most money per visitor on average - then test it against another price if you want.

      Personally if you've got audio and video tutorials $10 sounds too low. If I see a product promising loads for only $10 I tend to assume it is all copied from somewhere else, based on PLR or just telling me something I can find out for free elsewhere.

      Kind regards,

      James
      Thanks! Everyone's replies have been most helpful so far.
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