Let me ask you a question. The last time you launched your own product to sell online, or even offline, how did you come to a conclusion about what price you were going to be selling at?
At a guess, I’d probably say you looked at the competition to see what they were charging. While this is a good start, it’s far from the whole picture, and you’re fumbling in the dark if you looking at competition is the only factor you’re taking into account.
Did you know you can double your sales volume by doubling your price? I’ve done it myself, and I’ll show you how.
Did you also know that 99% of the products I see being sold are too cheap. So much so, that they’re putting customers off instead of attracting them (which is no doubt what they think they’re doing).
Let’s dispel some pricing myths and dig right down to the real facts to ensure you get the most cash in your pocket the next time you launch one of your products.
Overview on Pricing
● To introduce the concepts of fluid pricing strategies, and to show that you have many more avenues to explore than it seems like at first glance.
● To answer some of your questions about how you should price your product for maximum profit taking the number of sales to price ratio’s into account.
● To display the effect of pricing too low, where many people price their products without first looking at the all important bigger picture.
● To show you why many people are under pricing their products in a big way, and how you can avoid this pitfall.
● To show you that the price you choose for your product isn’t simply about charging less than the competition, in fact by charging more, you can be making even more sales.
● To give you additional pricing options for your main product, and show you how you can significantly increase your profits simply through giving your customers options.
● To demonstrate the correct and most effective way of going about introducing trial periods for your products, and why many get this wrong.
● To show you effective methods of experimenting with your price over time without annoying the people who bought from you previously at a higher price.
Pricing Strategies – Getting Started
There are some things that I want to talk to you about related to pricing before you head off, create a sales system, put up a website and stuff a price on your product.
The aim of this report is to give some insight into the versatility you have as an online marketer with your own products. The problem is, most people just seem to whack a price on their products with little time spent thinking about it, why they’ve priced it like that, and what factors are going to contribute to whether it’s a successful decision. Sound complicated and a lot of work? Well, let me tell you it’s not.
But I think it’s really important that I show you just how much freedom to experiment you have with regards to pricing, and what effect getting it wrong can have in a number of ways, so before you put a price on your product and release it to the world, take some time out, have a read, pick up the points and take them into account using them as kind of a checklist.
The Bigger Picture
Now understand, there’s a much bigger picture to this than most people realize. A lot of the time prices are put there, just because they can be and possibly fitted loosely around competition and other products and services offering similar things, however, it’s not just about planting a number and a dollar sign behind it. All through this process you should be asking yourself lots of why questions. Some of the time, people ask me why the heck I go so in depth into subjects and talk about why they happen. They just want to know how to make a whole load of cash real quick.
Well, I say to them I can tell you how to do stuff, but if the situation changes, and you didn’t know why it worked in the first place, then you’re going to have to come right back to me again, hand me another five hundred dollars just to find out how to do the same thing in a different way. However, if I tell you how things work, you can take some serious knowledge and know-how away with you, and you have the power to adapt to the fast paced changing world of business online or offline. If you can’t adapt, you’re dead. Or your business is anyway.
Like I say, there’s quite a lot to this, and a lot of things that we’re going to talk about, and there’s going to be a load of questions that are going to pop into your head. Does competition matter in such a big marketplace with regards to pricing? Should I be cheaper? Should I be more expensive? How do I know when to be which and why? Should I give special offers to particular groups of people? Who? Why? Should I offer different versions of my product at different prices? How do I do that, and how do I know if I’m doing right?
There’s a shed load of answers about the above and much more that I’m going to give you in a moment. But all the way through this I want you to keep in mind the flexibility you have as an online marketer with your pricing. Get this right, and it could easily mean double the profits for you. Get it wrong, and it’s likely you’ll have trouble selling anything at all.
Next post: Pricing With Regard to Competition. Until then see ya later…