How do you know how much you should charge?

11 replies
Having a tough time figuring out how much I should charge for my first product. Im trying to find a cut off point for how much to put into it so I don't charge too much.

It is going to be a 50k word info book with accompanying videos and a seperate book on practice techniques to drive home the key ideas. I was going to charge 39.97 but I think I could charge more. Any thoughts?
  • Profile picture of the author shawnlebrun
    The honest reality is... pricing is all relative.

    In other words, you can have a similar book to another marketer, and struggle to sell it at $19.95... while another marketer with great marketing and positioning can get rich selling it for $39.95

    this happens every day.

    The key is positioning yourself to seem like a great deal/value/benefit.

    The more you increase desire in the prospect, the higher you can charge.

    It's why people buy Chevy's and people buy Mercedes. it's simply desire and positioning.

    So, just go with your GUT as to what your product is worth. Don't undersell yourself... because I've sold WAY more ebooks at $39 than I ever did at $19 or $29.

    if it's too low... perception is that it's crap. you can charge a higher amount if it's perceived to be WORTH that amount.

    in almost every single category on earth... there's a high price version and a lower price version. what you charge is completely up to you... so just go with a price you feel comfortable with.

    Test out different price points too... you may find $29.95 brings in twice as many sales as $19.95, and that $39.95 brings more than $29.95

    pick 2 or 3 and test them out... seeing which leads to more overall profit.
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  • Profile picture of the author misterkailo
    Yup this is same saying for fashion. LV can keep charging several hundred dollars for their bags

    Depends on how people perceive the value
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  • Profile picture of the author Danny Cutts
    Test it :-)

    No one can give an accurate price as every market is different :-)

    Test Test Test

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  • Profile picture of the author TheZafraGroup
    Consider your effort, quality and value provided. If this is your first product, then consider getting your name out there first where $39.97 is a decent price. If people know you and already know you're out there to provide value, you can then start easily increasing prices.
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  • Profile picture of the author clever7
    Look for similar products and compare your product with your competitors’ products; and pay attention to their prices.

    I have a similar problem because I just finished writing my first Kindle ebook and I don't know how much I should price it. I went to Amazon and I read the introduction of many ebooks about my topic, and I compared their prices and the number of pages (there is an approximated number) of every ebook.

    I’m going to add more to the price because I’m an expert and I have already written many other ebooks, but they are PDFs. However, I noticed that the ebooks there are quite cheap. I found an ebook I had read, which is quite long and meaningful, and its price was only $7.90.

    I understood that the prices there are too low.

    I had the intention to sell my ebook for almost $9, but understood that I cannot sell my ebook for $8.75, which was my initial intention.

    I still don't know how much I should price it, but I understood that I have to be humble if I want to be objective. If a long and meaningful ebook (a best seller for years) is selling for almost $8, I don't think I can sell my short and meaningful ebook for almost $9, even though this is the value that I’m giving to this ebook based on its content.

    And I was even thinking that I was very generous… when I saw the price of this best seller at Amazon I understood that I had to change my mind.

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    • Profile picture of the author rschmitz
      Thanks for the replies. I thought it was taboo to test prices, biggest reason I ask. This is indeed my first product...I don't mind over delivering if it means establishing a reputation, but I still want to make a good amount in the process
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  • Profile picture of the author DubDubDubDot
    Take a look at your competition, what they are offering and how they are presenting it. If you can do something similar while filling some gaps they've left in their presentation, you're usually safe charging at least as much.

    Just make sure your competition is actually selling.

    Originally Posted by rschmitz View Post

    I was going to charge 39.97
    It only has to end in a 7 if it's an MMO product. It's code word for "I ended it in a 7 and that means I know my stuff!".... or something like that.
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  • Profile picture of the author Trey Morgan
    It's really up to you.

    You can charge however much you want for your product. If you want people to be happy with paying the amount you're selling your product for you have to make sure to over deliver in value. So if you're selling your product for $39.97 make sure it is good enough to be worth $97 or more.

    Make your customers believe that your product is worth more than what you're charging them with your overall presentation of your package including your sales page and the product itself.
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    • Profile picture of the author cjp214
      One thing I would consider: what's the overall long-term "purpose" of you selling your first product?

      Obviously you want to make as much money possible. If you price the product on the higher end, you might make more money from selling this particular product than if you went lower. On the other hand, if you price the product a little lower, more people could buy the product. You might make less money in upfront sales, but you'd be building a larger buyers' list you could market additional (more expensive) products to in the future.

      Again, this is just something to think about. You can't know this stuff for sure until you test different prices and find the sweet spot.

      Good luck,

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  • Profile picture of the author andirapandi
    I heard from someone (Eben Pagan?) that just for a test he doubled or even quadrupled the price of one of his ebooks. Result was that the sales (number of sales) actually increased. Higher perceived value.
    Total sales was then a lot a lot higher of cause as well because of price * volume.
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