Product Creation – Part Eleven – Pricing

We’ve approached product creation primarily through the ebook form. However, we’ve also covered a number of other forms you might consider. Everything from videos to a membership site to home study course.

In this session, we’re going to address how to price your product.

The first consideration is how you intend to use your product. Is it going to be an entry level product? Is it going to be an upsell? Is it going to be a top-end product?

The quickest, easiest method for determining price is to look at comparable products and their selling price. Study sales pages, competing products, and forum reviews to help you in this process. If the product appears to be close to what you’re providing and it’s selling for $47, then you can feel comfortable in pricing your product for $47.

However, you might want to offer more for less. It’s always advisable to offer a better product. This can include adding top-notch bonuses with your product. And it can be very beneficial to offer a better price as long as you aren’t devaluing the information within your niche.

So you might want to provide a better value for $39.97.

As a side note: I’m not sure how true it is that your price should end with a 7. This has long been the accepted practice. However, I don’t believe there’s any evidence that ending in 9 will result in fewer sales.

The last point on pricing is this: perceived value is extremely important. The same product delivered in a series of videos instead of as an ebook will generally be perceived as to having a greater value, which means you can charge more for it. A membership site, on the other hand, may have a higher perceived value, but people have to really be convinced of the benefits of paying a high monthly fee. I believe the average membership lasts somewhere around four to five months.

You may want to think about your funnel (which is the process of moving new customers through a series of ever more expensive products). An example: entry product ($27), upsell (another $47), expanded product ($97), membership site ($47/month), home study course ($297), personal coaching (depends on what you offer and how you’re perceived as an expert).

Generally, price points are: $7, $17, $27, $47, $67, $97, $197, $297, $497 and upwards.

Next time out, for those who can’t stand the idea of creating their own product, we’ll talk about outsourcing.

In the meantime, you can get a head start this way:

Stop Trading Your Time For Dollars
and Start Trading Products For Dollars!

Product Dashboard

POSTED BY Rick on Nov 14 under Product Tools