Price point question

Hello all,
I am in the process of launching my product hopefully next month, and I have been stuck whether to increase the price from my original plan of $49.95. I want to differentiate myself from all of the "$97" products, but maybe that is a good price point for these types of home business products.

I do not want to make the price to high during a terrible economy, but I also would hate to leave money on the table and cut my JV's out of money. If they got 75% of $97 instead of 75% of $49.95, then they would obviously be more likely to promote it. I also think that the higher price adds a higher value in some insatnces. Some people would rather spend a high amount of money thinking that they will only need this one product, instead of seeing one priced at $19 and think its trash.

So I am in the middle of my self debate, and if anyone could chime I would really appreciate any advice. By the way, the product has a very good sales letter and graphics done by well known guys, so there is no doubt in my mind that the product won't convert. The actual site will be up in February, but these things have made me reconsider my price point.

Any help would be appreciated,
Alan
ClickBankReaper.com

The only way to know is to test it.

Use a split tester or Google and see which one works better. You never know what to expect.

When I did seocodebreaker I set the price at $97 and it did well. Then I moved it to$197 sales were slower.

Then I moved it to $37 and the sale went up about 5X what I did at $97.

But you need to test it and see what the public votes on with their CC.

Thanks
Charles

Hey Alan,

I think you should hit up $67 or $77.

If you end up giving a 75% commission on $67, that is still more than what the usual is.. 60%

I think that's a good margin because it's in between "the rich" and "the poor" lol

Hi Alan,

I personally think that a great and proven product with crappy graphics and a simple salesletter would convert far better than a hyped up product with flashy and expensive graphics. The price tag on your product should reflect what you believe your product is worth.

That said, I agree with Philip that $67-$77 would be a good price range. It's not $27 which is cheap, nor is it $97 which would put some people off.

Curtis

I am going to have to agree with Charles on this one, that is if you want to make the most money. Just guessing $67 or $97 isnt going to bring in the most revenue, unless you just happen to guess right. You might find out you will make 4 sales at $37 for every 1 at $97. Its worth testing.

Hi Alan,
That's a great question and as suggested split testing is the way to go.
Without looking at the actual product itself its hard to determine what you should be charging for it.

One way is to simply look at what other people are charging for similar products. If your competitors are charging $97 then don't sell yourself sort. However, test it out and see what difference it makes to your bottom line.

I'm in the process of doing something similar with a membership site, currently in pre-launch as a WSO, for which I charged $17 per month. I've almost got 50 people signed up now, and I'm going to push the price up to $27 for the WSO. I'm hoping to eventually launch the product at the end of the month aiming at the $47 per month price point. But without testing it's difficult to determine if the $47 price if going to be a bridge to far.

All the best,
Tony

Thanks for the advice guys! Very helpful information....

I will do some thinking, and eventually some possible testing, but $67-77 sounds like a good place to start!

Alan

The biggest factor is the quality of your sales letter...

Did you write it yourself?

Or did you hire a copywriter with a proven track record?

Alex Goad's recent product sold like crazy at the $997
price point.

It actually sold better than most $47 e-books.

Quality copy is everything along with your name.


Craig Beckta

Excellent point Craig!

I think another big factor is the authority level of the product
creator. Once you have completed your first launch, you almost
always receive a huge boost in your credibility and authority
level.

Which gives you a lot of leveraging power for charging higher
prices in the future.

But of course, with a higher price point should also come
remarkable value. Build a reputation for over delivering.

I agree with the others about testing. If you convert 4x the amount at $37 than you do at $67 or $97, then that will tell you a lot. I'm sure it will be a great success no matter what you decide, but without testing, you could be leaving a lot of money on the table.

I wish you the best!

Craig,

I had Mike Jezek write my sales letter, and he is the best out there that I know of personally. My sales copy is pretty strong, but I am a no name. This is my first launch, so I need to over-deliver on this one (as Kim said). I believe that my product is worth well over $49.95, but this is the starting point of testing. Maybe one day I'll have the credibility to charge $997 for a product ;D!

Thank you everyone for your input. It is appreciated and will be utilized in the launch.

Alan

Sorry Alan to ask a question in your thread,but I think it is related. I would appreciate if someone can tell me how to evaluate the worth of ones product. If for example your product is a pdf e-book, does the worth change by the number of pages? Is higher number of pages perceived as higher worth or does it depend on the information's worth? What about other types of digital product?

Try running a really basic adwords campaign with website optimizer to do an a-b split test of the two price points you are debating between.

It will take a little bit of work but if you can get a good feel for which one is better prior to doing your actual launch you'll be able to rest easy with the piece of mind that you are 100% certain that this is the best price point.

Also, you'll be able to use your little experiment's results in your affiliate recruiting by stating that you did an A-B split test of price points and this price is PROVEN to convert xx% better through testing!

Affiliates love knowing that they are promoting the best possible version of your offer.