A Pricing Principle That Will Make More Money for Your Business
This post was written by Aaron at FullTiltBlogging.com.
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You are about to learn something that at first will seem like a foolish contradiction of conventional wisdom–but you will soon realize just how powerful and profitable this single principle will be to your online earnings.
Ready? Let’s look first at the conventional wisdom.
When setting a price point for a product the assumption is cheaper is better–that if you make your product $10.00 you will get far more sales than if your product is $100.00 or $1,000.00. It makes sense on its face: There are many more people who are ABLE to pay $10.00, therefore the lower price point means more sales, right?
Here’s at least one place where the conventional wisdom is wrong.
Here’s the truth: It is much easier to get 10 people to spend $1,000.00 than to get 1,000 people to spend $10.
When setting a price point for a product set its price at the highest possible price point based on the sales materials and actual product value.
Can all products be sold at a $1,000.00 price point? Of course not. But given the right sales materials many products that are often sold for pennies can be sold at much higher price points.
One real life example I witnessed a few years ago.
Two people launched eBook products in the same niche about six months apart. They had slightly different topics but targeted the same market and had pretty much the same people promoting them.
The first product was a 25 page eBook with some good information, but at 25 pages the level of detail was minor. Lots of big concepts; very few concrete examples or application. It sold for $197.00.
The second product was over 400 pages. It was written by an obvious expert. It had step-by-step instructions with examples. It had everything one would need to apply its principles. It sold for $47.00.
They both made an almost identical number of sales–but the 25 page ebook made four times as much money.
When you package and price your product make sure to look at the highest price point your product can demand and make sure your sales materials command that price. You will make far more money.
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This post is by Aaron Abber. Aaron is the owner of http://www.FullTiltBlogging.com where he teaches bloggers just like you how to make money blogging. Go there now to pick up his latest book “How to Retire on 200 Blog Visitors a Day” free.
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