If your price is too low, your audience will think the offer is junk. If it’s too high, they’ll say they can’t afford it. That’s why you need to create the right price using these steps:
- Check your competitors’ pricing on similar offers. Take note of the price range across all products, as well as the median price (the particular price point where most products fall). For example, you may find a range of $10 to $100 for a particular product, but perhaps most products are right around $27.
- Decide what makes your offer worth more or less than similar offers. Factors that can make an offer worth more or less include the bonus package, whether the product is aimed at beginners or more advanced users, who created the product, and how the product is positioned.
For example, if a weight loss product was created by an established, certified personal trainer, that person may be able to charge more than Joe Blow who creates a similar product without any experience or verifiable track record.
- Review how your offer’s positioning may affect pricing. E.G., do you have luxury branding and positioning? Is your branding about saving money? Not all positioning will affect pricing, but you’ll want to take positioning into consideration if it should be reflected in your pricing.
- Select a price based on your research. Now that you know what your competitors are charging, and you know whether you can price on the low end, middle range or high end of the price ranges, you can pick a price.
For example, if the median price in your niche for a product like yours is $27, but your bonus package is superior and your positioning makes it easy to charge more, then you might charge $47, $67 or more.
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Which brings us to the last point…
- Test your pricing. You can research pricing until you’re blue in the face, but the only way to tell for sure what price will be most profitable for you is to test a variety of prices.
In keeping with the above example, you might test the following price points: $47, $67 and $77.
TIP: Don’t hesitate to test prices that are much higher than you think they should be. Sometimes people judge a product based on price – with higher pricing meaning a better product in their minds. This means a high price can actually boost conversions and lower refunds. Test it and see!
Note: when you test your pricing, be sure to test major changes (e.g., $77 vs $97) as well as minor changes (e.g., $97 vs $99).
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