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Pricing / Increasing perceived value

by Johnny1975
15 replies
If you sell an info product, how do you decide what price to give it, and what do you do to maximise its perceived value to justify the price?
#increasing #perceived #pricing
  • Profile picture of the author Shaneman
    First of all it is a good idea to look around for similar products and see what they charge, so you have a rough idea. You want to start off with a price that is on the low side ( but not the cheapest available ) then slowly increase the price over time.

    When it comes to perceived value, focus on the benefits of the product to your potential buyer. As when someone arrives at the sales page they are looking for a solution and want to know "What is in it for me?" You need to tell people on your sales page how they will benefit if they buy and use your product.

    Also if you offer bonuses with your product, that can increase the perceived value too.
    Hope this helps you.
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  • Profile picture of the author Geoff101
    Compare the price with your competitor's price and the value offering.

    Then let your clients know how you offer more value than others.
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  • Profile picture of the author Jeffery Moss
    Don't just add on a bunch of cheap and over used info products to pump up the 'perceived value'. You could however offer something useful like an hour of telecoaching or group conference coaching via Google+ hangouts for anyone who purchases your product to provide additional information not specifically contained in your product. The huge advantage to doing this is how your live webinar can't be copied and illegally distributed around the internet in the way an ebook could.
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    • Profile picture of the author Johnny1975
      It's hard to know where to start or what to compare with when people are selling info products at very different prices.

      For example I recently bought a course consisting of :

      * 5 ebooks
      * 9.5 hours of audio
      * 2 hours of video (not original to the author)
      * 130 pages
      * approx 5 to 10 K words (very rough guess)
      * 33 exercises

      It was £97 ($161).


      The product that I'm working on will, I'm pretty sure, be quite similar in many ways, in terms of the amount of content, as shown above. i.e. it will have :

      * 7 ebooks
      * no audio
      * approx 1 hour of video (original)
      * 100 or so pages
      * 7 K words
      * over 50 exercises

      The product that I bought, I feel that it fell a little bit short on what it promised (not that it was bad). But my product promises and will deliver immediate results. And the sales page for the one that I bought said that it was previously £300 ($500).

      So, based on all of that, I feel that maybe somewhere in the region of £157 ($261) would be ok for my product.

      But when I looked at some clickbank products along similar lines to mine (but not quite like mine), they were priced at $17, $27, maybe up to about $70.

      I want to charge a price that is fair to me, but I don't want to rip people off. I want a price that will make the customer feel like they've invested enough to compel them to make the product work for them, but which they will consider worth it.

      Is £157 ($261) reasonable for what I'm working on? Could I charge more? Or am I being greedy?
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  • Profile picture of the author Sean DeSilva
    one way to think about pricing is to understand where you are in the marketing funnel. If they don't know you at all, you're looking at consumer price point, somewhere between $15-$50.

    If you're established as an authority, or have already helped them in the past with another product, your rate can jump from $100 to $500 depending on what it is you're offering.

    And if you're highly experienced or have delivered good results to them, those $1000 plus products that outsiders would freak out about suddenly become very reasonable to your prospects.
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  • Profile picture of the author talfighel
    You can always look around to see what others are offering. Then you can charge almost the same thing.

    Your first offer should sell for a low price. Why? Because this will not only get you more customers faster, you can upsell them more stuff after they purchased.

    Many vendors will charge something like $20-$30. Then they will offer them more products which can bank them anywhere between $100-$500+.

    Right after the purchase, they are HOT and are ready with their wallet to buy more if you give them that option.

    If you don't do this, you chances of getting them to buy more goes down and you should not wait a day or two to do this. Do it after the sale.
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    • Profile picture of the author Johnny1975
      I'm a nobody. I've never done this before so no one has heard of me.

      I'm open to the idea of charging a small price at first, in order to get the ball rolling, and to hopefully also get some testimonials that I could add to my sales page.

      But apart from that, I'm thinking what if after a while I get really cheeky and ask for the £157 that I think my product is worth. And just see what happens.

      Here's my reasoning :

      £157 is the equivalent of 10 guitar lessons (my product is for guitarists). But with guitar lessons, you have to go there and get back home (time and effort), and you have to pay for transport (money), and in a 1 hour lesson there's usually a certain amount of time spent on settling in, hi how you doing etc, and then a bit of time wasted at the end, so they're not really getting a full hour of tuition, especially is there's someone else waiting for their lesson right after.

      For the price of 10 lessons (minus travel, minus time spent getting there and back, minus hi how are you doing, etc - I plan on putting all this on my sales page), they get a series of very effective exercises which will make a big difference to their playing (I focus only on 1 single very specific aspect of playing, and I'm extremely thorough) that they can keep coming back to indefinitely.
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  • Profile picture of the author 7MilesPerSecond
    You can determine the optimal price by testing.

    Half the visitors see price A and half see price B. Sales are tracked by price.

    Then just crunch some numbers to determine which price point is most profitable. Then you do another test, then another and another.

    You can also test your headline and copy elements.

    This is very easy to do with services like Optimizely.
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    • Profile picture of the author Johnny1975
      Originally Posted by 7MilesPerSecond View Post

      You can determine the optimal price by testing.

      Half the visitors see price A and half see price B. Sales are tracked by price.

      Then just crunch some numbers to determine which price point is most profitable. Then you do another test, then another and another.

      You can also test your headline and copy elements.

      This is very easy to do with services like Optimizely.
      I've always wondered, isn't there an issue when someone buys something for one price and then finds out that other people are getting it for less?
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      • Profile picture of the author 7MilesPerSecond
        I think people don't like it since a coupon code box on a check out page slightly increases the shopping cart abandonment. They go looking for a coupon code sometimes.

        On Amazon several years ago a friend noticed different prices on the same item when viewed on my computer and his computer. He asked them why and the reply was "to maximize profits". They were honest. Now they are saying they will eventually ship stuff to customers before it is ordered.

        During WSO dime sales when you buy something everyone that bought it before you paid less than you. At Udemy several weeks after you do course at full price you start getting 75% off coupons.

        I don't think it is a big deal. Split testing the price doesn't take that long but is very important. You may make more profit by lowering or raising your price. You need to know that, but after you know it, you can move onto testing your headline, offer and call to action etc...

        One thing I would make sure of is that your list is well segmented. When someone buys your backend product A, they would never be sent an offer for product A again. It would be redundant and if they bought at full price you don't want them to get a half price offer.

        Hope this helps.
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  • Profile picture of the author pewpewpewmonkeys
    And the sales page for the one that I bought said that it was previously £300 ($500).
    Of course it did.

    You just answered your "how to increase perceived value" question.


    Selling something for a particular price isn't just about what you have to offer. It's also about how well you present the product. People buy $50 t-shirts at stores across the street from other stores that sell them for $2-5. They're pretty much the same exact thing and were probably made by the same exact kid in the same exact sweat shop, and yet people still pay $45 extra. The reason why is because the 1st store focuses more on how well they sell rather than "a fair price."
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  • Profile picture of the author hustlinsmoke
    Greatly depends on the product, the level of the seller and many more variables.

    I mean honestly if this is your first product ten you want to keep it low enough to attrack a large enough audience. You certainly still want the quality to be of a value to the customer over and beyond that.

    If your seasoned prices can go up accordingly. I still think this market is about building a list and I believe the cost should no where come close the value.

    Lets say I'm just starting out. I build a list building report, a couple of videos a 15 page report I sell it for 7.00 giving 100 percent commission upfront to my affiliates.

    Now Im seasoned, I had some great epcs and I want to move up so I build an entire package, a 40 page report, ten videos then I may think about doing a whole 12 bucks lol. With 100 percent still going for the front end product.

    In this game its about building a list. Later when that list is built I would do higher end products but not till then.

    That is how I would do it.
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    • Profile picture of the author Johnny1975
      Some specific questions :

      1) What is a good price to start off with for a 1st info product?

      2) What percentage should I initially give away to affiliates?

      3) How long before increasing the price?

      4) How long before negotiating for a better percentage, and how much could I hope to get?
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  • Profile picture of the author pewpewpewmonkeys
    There is no set formula or perfect answer. It's all in the realm of trial and error. Planning and research is great, but eventually you're going to have to take an educated guess and just DO. Sure, you might f-up, but you learn from that, correct the problems, and evolve.
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    Some cause-oriented hackers recently hacked one of my websites. So I researched what they're about and then donated a large sum of money to the entity they hate the most.

    The next time they hack one of my websites I'm going to donate DOUBLE.
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  • Profile picture of the author Samuel Adams
    Originally Posted by Jeffery Moss View Post

    Don't just add on a bunch of cheap and over used info products to pump up the 'perceived value'. You could however offer something useful like an hour of telecoaching or group conference coaching via Google+ hangouts for anyone who purchases your product to provide additional information not specifically contained in your product. The huge advantage to doing this is how your live webinar can't be copied and illegally distributed around the internet in the way an ebook could.



    Another variation of this idea would be to offer a site critique to the person who buys your info product or ebook. After the purchase is made, they would send you a link to their main site and you could offer suggestions on how to specifically apply the information found in your ebook to their site. As author of the ebook, you would be in a unique position to offer this type of insight. A much better idea than allowing your customer to go it alone.
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