Pricing a product..

[abbesnetwork]

Hi

One of my biggest questions always was how to set a price for a new product. I saw many prices ending number 7 (ex: 67.77). More than this i have to follow a market trend (watch other similar products in nice) or what? Of course the price must be proportional with product value and work..


Thanks,

Razvan

[Michael Hearne]

yes, prices ending in 7 usually outpull other numbers... and i think Dan Kennedy says to include the cents when you're giving them something, but leave them out when your taking money... so your free bonus is worth $5, 697.23 but your product costs $197... but that's just general advice...

the smart way to set your price is to split test it... Try out a price you think is ridiculously low, one that's middle of the road and a third that is sky-high...

you could take it a step further and split test different offers at the various price points...

anyways, basically, let the market decide... and keep tweaking it till you maximize your profits...

[Taylor Winfield]

When pricing a product, I usually think of the value the customer would get from a product, and also the content you provide.

For example if you have a video course you can charge more because of the value of video. Whereas ebooks are becoming less and less valuable. This is not necessarily true but I tend to think people put a higher price on video online.

It's all about what the customer would get out of it in my opinion, this will also make your customer much more likely to buy from you again.

Hope this helps

[Emilis Strimaitis]

Long time ago, in many niches smart marketers used 9 instead of 0, because psychologically when people see $19 instead of $20, they think that $19 is much lower and this little trick increased the sales greatly.

But after a while, people subconsciously rejects the 9 trick, so marketers had to come up with something new... And they did! They changed the angle of attack and took 7 instead of 9. 7 is also referred as "lucky" number, and people like it.

But nowadays, in my opinion, product prices are ending in 7 just because everyone else does it, everyone just follows up the trend without even thinking

[charleskirkland]

I have tested the daylights out of so many thinks and the 7 and 5's work best. But to set your price you need to know if you are going to make money or build a buyer list.

Charles

[tajinder]

i agree with charles.the pricing strategy ultimately depends on the purpose of selling the product.if your purpose it to get more people into your marketing funnel,you should price your front offer as mid price or low price.usually its around $7-$47.

then you could choose whether wanna offer any upsell on top of the front end offer.create a back end product if you want to increase your profit.because if you price your front offer too high some people may not afford it.


so by keeping it between low to mid price,you can increase your customer list.always price your item according to type of media you are delivering your content.if it's just an ebook don't price it at high price like $77.people want to get more out of their dollar spend on your product.

if you want to create high price item do videos or webinar coaching series.videos and webinar have higher perceived value because now people can watch and follow the steps.people are lazy and they like to be pampered with exact steps they need to do.

[abbesnetwork]

i agree with charles.the pricing strategy ultimately depends on the purpose of selling the product.if your purpose it to get more people into your marketing funnel,you should price your front offer as mid price or low price.usually its around $7-$47.

then you could choose whether wanna offer any upsell on top of the front end offer.create a back end product if you want to increase your profit.because if you price your front offer too high some people may not afford it.


so by keeping it between low to mid price,you can increase your customer list.always price your item according to type of media you are delivering your content.if it's just an ebook don't price it at high price like $77.people want to get more out of their dollar spend on your product.

if you want to create high price item do videos or webinar coaching series.videos and webinar have higher perceived value because now people can watch and follow the steps.people are lazy and they like to be pampered with exact steps they need to do.

very usefull, thanks jess

[tblrg]

Reason for prices to end with a 9 goes back to due to tax rules in the 40s and 50s.

Products less than $100, say $99.99 were taxed lower. A difference of 1 cent pricing made a big difference in tax paid by the sellers. Products less than $10, $9.99 had a different tax treatment. Finishing with a 7 is a recent phenomenon.

Now on pricing a product...think of current alternate choices if the consumer does not buy the product. For example if your product saves 20 hours of work/month, you can say it saves $50* 20 and a fraction of the cost for the life of the event, of even a month justifies the product price. Same can be demonstrated for revenue generating products.

[akitmane]

max of marketers start up with $67 to up $97 but these days marketer looking for faster and best way to sell and get real profit with less price, I'm thinking to launch my own with $37 only 50% for my JV and rest for me, I think especially if this is your first launch, low cost price can work perfect

[michaelzenga999]

Hey Charles,

I was at Russell's event with you this week - you gave lots of great input. I like products with the 7s too.

Thanks,

Mike