How Do You Decide
on Product Pricing?

Pricing is always an issue that people worry about. That applies to your own products and as youll see a bit later the products you promote.

And pricing is a minefield.

Theres no correct answer about the price you should charge for the products you create in the offline world its just as chaotic.

How Do You Decide
on Product Pricing?

For instance, I buy my mums groceries so I end up knowing more about some prices than Id like to know. One of her favourites is instant porage oats with golden syrup and I can buy the box of sachets in my local supermarket for 2.58 or I can get the identical box in a local pound store for 1. Thats a two and a half times price difference for the exact same product bought in a different shop.

Translated to a $10 internet marketing product that would mean $25 in the right location.

How Do You Decide
on Product Pricing?

The shoppers in the supermarket are happy to pay the higher price and the same goes with online prices.

Ive not done a precise survey but my gut reaction is that JVZoo seems to sell higher priced products than Warrior Plus. And Clickbank is higher still.

How Do You Decide
on Product Pricing?

When he was alive, Gary Halbert famously said:

What advantage do you want? they ask.

The only advantage I want, I reply, is A STARVING CROWD!

You can read the whole of that particular article on the Gary Halbert Letter website. It holds just as true now as when he wrote it back in 1984.

How Do You Decide
on Product Pricing?

And it affects the price you can charge.

If theres a crowd of willing (starving) buyers youll get more money than if theyve just eaten or if theyre only feeling peckish.

The copy you write plays a part in creating your starving crowd thats one of the reasons so many products (not just internet marketing ones) are laden with hype, images of success and promises of as close to instant results as its possible to make without falling too foul of legislation.

How Do You Decide
on Product Pricing?

And like the porage oats theres no reason to keep to one price.

Experiment.

You may make more sales at a lower price but more overall profit at a higher price even though you sell less units.

How Do You Decide
on Product Pricing?

100 sales at $7 would bring in $700.

50 sales at $17 would bring in $850.

25 sales at $27 would bring in $675.

10 sales at $97 would bring in $970.

So if that was the case (and you wont know without testing) then 10 sales would be the sweet spot to maximise income on the front end.

How Do You Decide
on Product Pricing?

Then it starts to get complicated.

Youd have a different number of buyers on your list if those figures held true at the various price points.

And buyers lists are valuable theyve proven that they can and do spend money. Theyre more likely to spend money again on your next product or promotion than people who are more interested in getting freebies.

So you may decide to home in on a lower price tripwire product in order to get more buyers on your list.

How Do You Decide
on Product Pricing?

Or you may decide that youd prefer people who arent just on the adrenaline rush of $7 products and that youd prefer the lower number of sales at the higher price point.

You might even decide that youre going to price the product even higher maybe $297 and promote it via a webinar.

Could it be the same product at all those different price points?

Probably.

How Do You Decide
on Product Pricing?

Youd maybe need to add a Skype call or a personal consultation or ongoing support at the really high price but Ive seen cheap $7 products offer almost the same as much higher price products.

Some of it is down to how comfortable you are with the price youre charging.

And some of it is down to the expectation of your buyers.

Id wager that the people paying $297 will get better results than the people paying $7 for near enough the same product.

How Do You Decide
on Product Pricing?

Why?

Because they have a higher perception of the value of the product.

Thats one of the short cuts we use (check out Robert Cialdinis book Influence for more detail) because lifes too short to evaluate everything before we purchase, even if it was possible to do that.

All of which is a long way of saying that pricing products is inspired guesswork.

How Do You Decide
on Product Pricing?

The same goes for products you promote.

I promote a number of different binaural beats meditation products in the self help arena.

They all basically do the same thing: change you brains state to one of deep meditation whilst playing a track of rainfall or other natural sounds.

How Do You Decide
on Product Pricing?

The most recently launched product takes 12 minutes per session and typically costs $47 so long as people take the almost-perpetual early discount.

The next most recently launched (from the same company) takes 30 minutes per session and costs $297.

The one I use (because the others above werent available when I bought it) costs around $100 depending on whether or not you get just the downloads or the CDs as well. The sessions last an hour.

How Do You Decide
on Product Pricing?

And the grand-daddy of them all costs an order of magnitude more (hundreds of dollars per level and takes years to complete versus weeks or months for the other products). It is personalised once you get beyond the first level and there are upsells to go on retreats so it could easily cost thousands. It still sells and people swear by it probably because at that price point, theyre more likely to use it.

But the results are essentially the same, even on the cheapest level.

How Do You Decide
on Product Pricing?

As an affiliate, I make the most money most months from the cheapest product but occasionally one person buys the $297 alternative and the 50% commission dwarfs the cheaper product with just one sale.

Unfortunately, that doesnt happen every week or month but when it does, its a nice feeling.

The nice part about this is that you can make a comparison page (which is what Ive done) and get both ends of the market.

How Do You Decide
on Product Pricing?

You could equally create pages promoting each different product. That would work and you could almost certainly do it on the same site as the one with the comparison pages.

Experimenting will help you work out which pricing option works for you.

My previous background was retail and typically lower price, higher volume products and thats where my comfort zone still lies.

How Do You Decide
on Product Pricing?

Yours may well be different.

Some affiliate marketers I know only promote high ticket items even as their first sale to people and manage to earn a very nice living from that.

Others prefer quantity of sales.

Both work.

How Do You Decide
on Product Pricing?

Which I guess means that pricing comes down to testing and inspired guesswork. Which reminds me of a web designer I met who, when asked how much a website would cost said as much as a car.

Its down to personality and comfort as much as anything else.

But, of course, you wont know until you actually test it for yourself!

And if youd like more help with your internet marketing, click this link.