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How do you Price (value) your online Products and Services?

by TiAndrine
2 replies
How do you arrive at the beginning price (value) of a product and/or service you offer online?

(I ask because we are currently testing out the idea of marketing mp3 downloads on an individual basis.)

 so in our example...What do you think would be the value of a PLR mp3 with a big name guru?

Given that the audio could be used personally and professionally, say to add valuable content to prelaunch affiliate sales, great content to share with your list, free offer for optin and valuable content to a website or blog etc.

Then as a Warrior it begs another question...How would you price something like a PLR mp3 as a WSO?

 let's say rights could be just about anything a purchaser would like to do with it short of,
-selling it
-adding it to a membership site
-or passing along any rights to anyone else

Sure appreciate any insight on this inquiry, especially successful steps that you have implemented to price online products and services of your own.
#price
  • Profile picture of the author Adaptive
    Everything you need to know about pricing is covered, in depth, in one book:
    The Strategy and Tactics of Pricing by Nagle and Hogan.

    Start with the value of the benefit you provide.

    With your product, how much more money could people make? How much could they save? How much would they no longer have to spend on whatever they do now to alleviate their pain? How much would the pleasure of your product bring to their life?

    This is what you have to quantify first.

    The audios can either provide a new income stream, or enhance the appeal of an existing offer. You need to put a dollar value on that. If you can't, how could your clients understand what it's worth for you?

    Now to make use of your offer, what will your customers have to spend on accessories, training, supplements? For example, the net value of a car is not in the drive, but in the drive after you subtract the maintenance, gas and insurance costs.

    How sophisticated will your buyers have to be to use the product? How much will it cost them to use it to the fullest?

    Should you actually be offering a larger product, that includes the audio plus consulting help about how to best integrate the audios with your customer's business model? In Jay Abraham's terms, is there a more comprehensive way to protect the interests of your clients, that you should provide to them?

    With the value of the benefit, and the cost of implementation, you can now predict return on investment. If the net increase provided by the audio is ten times what you charge for them, isn't it easier to sell them vigorously?

    With that estimated pricing, is your offer ten times better for the client than whatever competes for their money?

    There are a few ideas, but if you have the patience to go through a dense book, you'll find a lot more - incredibly valuable - specifics in the book.

    Regards,
    Allen
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  • Profile picture of the author TiAndrine
    Fantastic Allen, funny no replies all day I thought my question was pretty much dead and buried...then you deliver the goods my friend.

    The book has been added to my Amazon wish list and with what you have extended to me here I have a good hand hold and foot hold to get climbing.

    Thank You,
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