How do you know if your product is priced too high?

24 replies
Yup, when do you know if the price is the one factor stopping people from purchasing versus other copy-writing, sales video issue?
#high #priced #product
  • Profile picture of the author Survivalcavefood
    Take a look at your competitors. What are they selling for? Can you beat their price or show your product is better? The smartest thing you can do is look at your successful competitors. They have already done what you are trying to figure out.
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  • Profile picture of the author VinnyBock
    Originally Posted by alvinchua91 View Post

    Yup, when do you know if the price is the one factor stopping people from purchasing versus other copy-writing, sales video issue?
    I can't say for sure if there are any tell tale signs that a price is slowing sales, but one thing you should try to avoid at all cost is starting out too high. You can always raise your price, but dropping it isn't so cut and dry...

    I actually learned this the hard way. I know it seems obvious, but in the mist of my 1st launch when my time was being stretched really thin, I kind of overlooked the obvious aspect of price..
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  • Profile picture of the author website design
    1 - analyze your competition: quality, quantity and unique selling position
    2 - Compare value and benefits of your product and find the sweet spot
    3 - If you're just starting out you could try split testing a couple of offers and see what works best. Logic doesn't always answer the question. I had one book for $37 and decided to split test a $47 offer. ended up with very similar conversions but the profit increased substantially.
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    • Profile picture of the author Lance K
      Testing.
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      "You can have everything in life you want if you will just help enough other people get what they want."
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  • Profile picture of the author themichaelcook
    Testing bro... Also if it is a Front End product you should price it a little low like $5,$7,$9 for the Front End unless it is a Coaching Program then it would normally sale alot higher...

    But just test out man and as stated above find out what your competitors is selling products for that is closely related to your products, Then go from there...
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  • Profile picture of the author JonP
    Yeah, I suggest testing as well. You should be able to test a couple of different price points, take the best one and then test again. One suggestion that I've heard over and over from different people is that having the cheapest price isn't always the way to make the most sales or the most money. Sometimes a higher price on your product will actually convert better than trying to sell it at a lower price. Maybe having a higher price generates more profit overall than selling more units at a lower price. This is where testing is so critical and can help you determine what is best for your business, as well as your pocketbook.

    Jon.
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  • Profile picture of the author WillR
    Think about this.

    It may not be that your price is too high. It might be that your value is too low.

    If someone was selling $1 notes on the side of the street for just 50 cents, you and I would buy them all day long. This is because the value you receive is more than the money you are spending.

    So if ever there is a problem with people not buying your product, look at either presenting the value in a better way or adding more value to that product/service.

    The only reason people don't buy something is because they feel the money they are spending outweighs the value they are receiving.
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  • Profile picture of the author alvinchua91
    Hmm.. They are selling a one time payment; though I don't know what they have on their backend... Mine is a membership, but I'm thinking of converting it into a one time payment.
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  • Profile picture of the author James Fame
    Originally Posted by alvinchua91 View Post

    Yup, when do you know if the price is the one factor stopping people from purchasing versus other copy-writing, sales video issue?
    I'd advise studying the Demand elasticity theory.

    Since we're the producers, we'd want the optimum level of revenue. It really depends and you need to test with the revenue in mind, not the short-sighted number of sales you receive.

    Do a split-test like such:

    Price point A * Number of sales A = Revenue A
    compared to
    Price point B * Number of sales B = Revenue B

    Then slowly find the sweet spot using the elastic curve theory.

    When you find the front-end sweet spot, then you can maybe run tests on the backend.

    James Fame
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    Fire me a pm if you have a question. I build businesses and provide consulting. I do not do finance/money/internet marketing niches. Fitness, self-improvement and various others are welcome.

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  • Profile picture of the author amcg
    With price, testing is important as above. If you're selling software, it could be an advantage to offer different pricing tiers - this particularly helps with onboarding right. I would advise against giving away your product - but how about a free trial?
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  • Profile picture of the author betterprize24
    well you can search from google or other website
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  • Profile picture of the author John Romaine
    Start low and work up to find the sweet spot.
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    • Profile picture of the author ITSMARTIE
      If you think your pricess are currently too high and stopping people from buying, then lower them see what the impact is,

      I don't mean lower by £10 seriously drop your prices yes you wont make a much profit it may even work out you are only working for a couple bucks an hour, but if the sales increase dramatically,

      Then you have your answer, obviously then you can increase them again but you know not to increase by too much and just see at what point your sales decrease again and then you have your sales price.
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    • Profile picture of the author Stuart Walker
      Originally Posted by John Romaine View Post

      Start low and work up to find the sweet spot.
      This is how I like to do it. I can increase my price slowly but surely until people stop buying and then I know I've hit the upper limit of what people are willing to pay.
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      • Profile picture of the author John Romaine
        Originally Posted by RockingLastsForever View Post

        This is how I like to do it. I can increase my price slowly but surely until people stop buying and then I know I've hit the upper limit of what people are willing to pay.
        Agreed.

        It also allows you to do so without upsetting any previous buyers. Especially if you do it the other way round by "dropping the price out of sheer desperation" to try and make sales.
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  • Profile picture of the author alvinchua91
    Right, I have just replaced the membership pricing with a one time price. Hm.. What kind of backend products usually would work?

    I'm in the health niche, and my main product is already meant to cover everything needed to know to solve their problem..

    Would a very cheap ($7.95-9.95/month) membership at a private forum or closed Facebook group for support be good? (I'm not sure what's the word... such as that of weight watchers where they have private groups)
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  • Profile picture of the author Willie Crawford
    You also need to look at what segment of the market you really
    want to target, and is your message and medium right for them.

    Sometimes the answer to increased sales or increased revenue is
    to increase price... but change you message to make sure that it's
    talking to your ideal/target prospect.

    Willie
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    • Profile picture of the author galitsyn
      You may ask your audience how much they wish to pay for your product if you feel that you have overpriced.
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      • Profile picture of the author James Clark
        Have a few clients that I teach. 5 hours of recording is a hundred dollars.(if you are expert in your niche) also, a $27 dollar e-book.

        The combination of the two should get you to 5,000 to 6,000 a month so that you can quit your job. All you have to do is figure out how many to sell.

        In my business I have codified the learning process. What I mean is a having a system of learning that works for me. I learn by listening and reading. 5 hours of listening to recording and 10 minutes of watching videos.(I don't watching videos unless its a technical instruction).

        Based on my experience, watching videos longer then 90 minutes a day is counter productive. You bond with the videos. Some might disagree with this concept but it works for me. And everyone that I have taught have some degree of this system.
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  • Profile picture of the author absolutelee
    Start below what you think the price should be based on competitors. That tests your copy, etc. If that works, then start increasing the price, etc.
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  • Nailing the right price is difficult because "pricing" is a subjective measure: it's entirely related to how strongly you can position your product/service, and how valuable your users perceive it.

    Is a Ferrari 10 times better than a Toyota? then why does it cost 10 times as much?

    So it's not as much about getting "the price" right but about getting "the perceived value" right for your desired price point. That's what you gotta work on.
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  • Profile picture of the author Marc Rodill
    As others have said, it's really about split-testing. So maybe you test 29.95 vs 39.95 and see which one comes out the winner. Then like Willie says, the audience makes a big difference.

    Make no bones about it, you can sell the same "how to do marketing" info to business owners and charge more than you can the average internet marketing newbie.

    Why? Simply because it's more valuable to them.

    Here's a pretty cool video by Ryan Deiss awhile back that is still relevant today. No affiliation, there's not even an opt-in anywhere on the page or anything:

    The Pricing Enigma | Digital Marketer

    Some pretty interesting results about making more money while lowering price, and then increasing it back again with split pay options. Smart for anyone to test.

    I wouldn't worry about upsetting potential customers though. It's your business, you run it, charge what you want within the bounds of what's right for you.

    Hell, you're upsetting some people just by being in business in the first place.

    Marc
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  • Profile picture of the author pingsters
    Banned
    Yes. But you'll have split test to see which is profitable. And then adopt that one !

    Thanks
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  • Profile picture of the author Anoosh Kashefi
    Split test your offer.

    1) Duplicate your sales page
    2) change one thing on the duplicate - the price
    3) send test traffic (the same traffic to both pages)
    4) once both pages have about 100-200+ clicks
    analyze your results.

    Which one got more sales?

    You can do this for everything, but I would start with the headline first because if nobody gets down to the bottom of your page to see your price it's all for nothing anyway!

    Good luck.
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