Reality Publications presents...How To Strategically Price Your ProductHere's another audio lesson to help put your online business into high gear. I appreciate your feedback!
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A Transcript of... How To Strategically Price Your Product |
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How to Strategically Price Your Product Now that you have your digital info product complete and ready to be sold, the next question is what to charge for it. How much should you ask for your work? That is a hard question to answer but the general rule of thumb is: The more potential customers there are for your product the less you can charge for it and the opposite is true. The fewer potential customers there are, the more you should charge for it. Think about how products are priced out in the brick and mortar world. In very exclusive shops, where very exclusive products are sold to only a few well-heeled customers, the prices are high. VERY high. On the other hand, prices of similar products are priced much lower in department stores and even lower in giant chain stores like Wal-Mart. The reason that the products are priced lower is because there are a lot more buyers for them and more product will be sold. It is just simple mathematics. You can sell 10 people an item for $100 each and gross $1000. You can sell 100 people a $10 item and still gross $1000. The fact is that there are more people who can afford to spend $10 than there are people who can afford to spend $100. There is another consideration to be made when pricing your information product and that is that it takes the same amount of effort, time, and energy to promote a $10 product as it does to promote a product that sells for $100. Your product needs to be priced as high as it can possibly be priced. The amount of information in the product and how valuable that information is to the prospects needs to be considered. Correct pricing is a balancing act. Have you ever heard the old saying, 'You can price yourself right out of the market'? If an information product is priced too low, people think it will have little value and not be worth their time or effort to read it. On the other hand, if an info product is priced too high, people might really want it but feel like they simply can't afford the price. Consider the information that is contained in the e-book. Is it new information that will help to solve a pressing problem for many people or only for a few people? Is the information contained in the product available elsewhere or is your product the only place this information can be found? Will it make people look better, feel better, make more money, have fun or solve a problem and is it the kind of information that people would be willing to pay a lot of money for or only a little money for? Will your information product appeal to a very large pool of potential customers or only to a few people but be of a great value to those few? Pricing your information product is a sticky and tricky problem. Pricing it too low is just as bad as pricing it too high. If there are similar information products on the market, you should check their prices and not price yours too far from the center. Just remember -- set your price at the highest level you believe that you can get because you will work just as hard for a $10 sale as you will for a $100 sale. |
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