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How to Price Your Product

Hi everyone! Since I was up so early, I decided to get another 90-day product creation challenge tip done for you – this time on pricing your product. Here’s the vlog with text below…

There are different ways to price your product – one time payment, monthly ongoing indefinitely or for a certain # of months.

Do you want a low entry point with add-on one time offers and upsells? Some marketers who have multiple components of their product take ONE to use as a low entry point ($27 or $37 for instance) and then tack on the rest as upsells or OTOs.

Don’t price off page count! You can’t price a product based on whether it’s 7 pages or 700. Don’t do it! Volume does NOT matter.

Price for your target audience. What will and SHOULD they pay?

Think of your product as a college course more than a book.

Think of your affiliates – make it worth their while. (Many won’t promote for under $20).

Compare it to others in the marketplace. But don’t get too wrapped up in that. Just get a spectrum – for instance, there are $0.99 hamburgers and $1,000 truffle-laden burgers at a fancy restaurant that people eat with a fork! Be in between – or not!

Remember you can tweak it up or down. Nothing’s set in stone and it takes seconds to log in, change a price and save. Don’t hyperventilate over it.

You can split test. There are tools that let you test all elements of a site. Price is one. See which converts better.

It doesn’t have to end in a 7. I always use that as an example though. I dislike prices that end in 9 personally because as a consumer I’m always wondering why they didn’t just bump it up to the rounded number. But a 7 means I’m saving $3. LOL

Remember this: The marketplace is NEVER wrong. Ever. If someone’s willing to pay $1,000 for that truffle burger, then that’s prices correctly, period.

Do NOT price based off your self doubt. I don’t want you to price it low because you’re new or unknown or any other bullshit excuse. You go into this thinking you ARE the shit and price it accordingly. Being the shit doesn’t mean you overprice your product. It means you’re pricing it according to what you truly believe is the value is provides.

And if you price it too low, ask yourself why – does it NOT include enough value? Back to the drawing board then. If it’s a simple tip in a short report – as opposed to a full scale product, then a lower price point might be okay.

Tiff ;)






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35 Responses to “How to Price Your Product”

  • Yoan says:

    Thought you’d be in your dressing gown LOOOOOLLL!!

    • Tiffany says:

      What’s a dressing gown? Is this the same as a nightgown? I’m a t-shirt kinda girl anyway. But no, I got up, dolled up, vacuumed and ironed my kids’ clothes and worked it ;)

  • Great advice on a topic that many people stumble on, not just newbies.

    I get tripped up sometimes when I think, well if books are 1.99 on Amazon, maybe I should price all my PLR books at that level, when I know darned well that people used to pay $27 or more for this level of information.

    Amazon Kindle has really killed off the profitability on books now, as such a huge chunk of buyers expect to get EVERYTHING at 99 or 1.99 nowadays.

    I’ve even had some Amazon buyers request refunds on a top health book, written by a pro, on sale for only 2.99… not a flimsy 10 page bit of crap that gets bulk published by some scammers.. and it got 15% refunds … WTF?

    So there are times when there is simply no logic… I have worked out that not is there only more profit in 10 – 30 dollar books and products, you also get almost zero refunds compared to the 1.99 cheapskate tire kicker buyers who I think have “refund” buttons on auto-dial.

    Price your products for a fair price, and find out what your market will bear. Then if you have to, as you say, lower the price until you find your market level for your product.

  • Yoan says:

    Sorry, meant nightgown! The flowery ones??LOL! Yeah, well I hope you don’t wear those ugly nightgowns or I’ll be worried LOL! I was joking as usual! Up at 3, vaccuming and ironing? My, my!! Do you crash during the day sometimes? LOL!

    • Tiffany says:

      No way. I’ve always worn t-shirts. As a kid, teen (rocker tees), etc. LOL! I WILL probably crash but it’ll be at least 3-4 pm before I do.

  • Britt Malka says:

    I loved this. “Do NOT price based off your self doubt.”

    When I created a Squidoo based product last year, I priced it lower many others, because I thought: “I don’t have a name here, like Tiffany Dow, Sara Young, PotPieGirl or Erica Stone. So I have to price it lower.”

    I’m working on my next Squidoo based product now. Time to show some guts?

    Then I think: Nah, I want people to be able to afford it.

    But is that just an excuse? Should I go 7-9.99 dimesale or just sell for 17?

    How do you value a product?

    • Tiffany says:

      People can afford it. They’re paying more than $17 for products. It depends on what you’re teaching in it – only you can place a value on it. IE: I’m making right at about $300 a month in my Squidoo account right now using the stuff I teach in my Squidoo guide. I sold it for $17. That’s too low. If people are buying $47 and $67 products for Internet Marketing, then they’ll buy your Squidoo guide if it can help them make money or achieve their goal.

      But only you can price it. Try split testing. IF it DOES indeed sell at a higher price point, then you know you’re wrong about the lower price.

  • Mary Kathan says:

    Yes – we all need to remember that we ARE the shit!

    In a good way….

    ha!

    Mary Kathan

  • Excellent advice. As you mentioned, you have to work out what you think your product is worth and what the market place will pay.

    The other important thing is to make sure that you choose the right market place for your product. People who buy kindle books are used to paying a maximum of $9.99. They will not be the people who will purchase an ebook book for $47+. So choose the right market and set your price accordingly.

    Thanks Tiff :)

  • Carol Amato says:

    Great thoughts, Tiff, thanks!

    I had been caught up with the 7s but now am liking the 5s….

    I see $_.99, $_.95 or $_.00 most often on Amazon, and ya know they have gotta be split testing stuff…

    Have a great day.

    - Carol :)

  • Buddy T says:

    I outsource fiction for Kindle. I paid $60 each for 4 book at 10000 words each. Small books, novelettes really. And I priced them at $.99. I sold a handful in about a year. Fast forward to January when I raised the price of each to $2.99. Sold more book. Last month I bundled them together and sell all four under one title (Chemical Vampires by Jennifer Stewart, a pen name) and now sell the first one still at $2.99 and then they jump ahead and buy the bundle. Make sense?
    BTW, my latest post is Markets, Niches, and Keywords, And A Video!

  • Ashley says:

    There is the flip side to this where people price things at the $97 point and you think you’ll be getting a good item but you get something which has been thrown up off their blog or is just the basics.

    • Tiffany says:

      Tue – but you won’t do that :) AND…I have to add… “just the basics” is GREAT for many people and well worth $97! If you’re talking about fundamentals. Still would need step by step. I think you’re talking about basic as in no detail probably, right?

  • Bonnie Gean says:

    Way back in the day when I first started online and the big dogs were known as Cory Rudl, Steven Pierce, and Yanik Silver… testing proved which pricing structure worked best.

    The 7s won over anything else, which is why people started pricing products ending in 7. I don’t know if that’s changed much these days (as I don’t follow too many of the gurus anymore) – so it’s worth split testing.

    Survey Your Audience

    I would think a survey would work. First, ask your audience what type of help they need RIGHT NOW and then survey them to find out what they’re willing to pay to get that advice.

    I just read an announcement sent out by Andy Bailey asking his mailing list what they would be willing to pay for a month subscription for CommentLuv. (Yes, he’s changing the pricing structure over to monthly billing!)

    Google offers a way to run a free survey, so you don’t need Survey Monkey or anything to try one.

    Marlon Sanders is another one who believes it’s important to survey your audience/mailing list.

    What do you think, Tiff?

    • Tiffany says:

      Well survey about what they need would work but I believe they’ll almost always say less than what they’re really willing to pay. Split test yes though.

  • John Brewer says:

    Hey Tiffany,

    Stumbled upon your blog today and thought I would weigh in on the conversation.

    I am actually getting ready to launch a membership site. I am having some second thoughts about pricing, so this blog post of yours really opens up several things for me.

    I am not new the internet marketing seen but I am not someone that makes a lot of money either. I am still trying to get my foot in the door.

    @Bonnie Gean…I agree with you. I read an eBook titled “The Lost Blueprint” by Kyle Tulley and that has helped me understand that whole process…surveys included. How else are we to know what our tribe wants??? Surveying about pricing though is not something I am sure I would want to do. Find out what they need, yest but not what they are willing to pay for.

    Again to Tiffany…thanks for the post. I will be following more in the future.

    John

  • Terry S. says:

    I’ve always rounded up prices to the next whole dollar, then to the next block of $5-10, so if it’s selling for $12.97, it goes thus:

    $12.97 –> $13 –> $15 or $112.97 –> $113 –> $120

    I love a local shoestore, SAS (San Antonio Shoes), because their prices are whole-dollar amounts and they include tax, so there are no surprises at the end. They also give you free popcorn while you shop and they put a couple of chocolates or caramels in your bag with your purchase — kind of reminds you of the “bribe” to get people to opt in, doesn’t it?

    Their shoes aren’t the prettiest or most fashionable thing around, but they’re excellent quality, comfortable and very durable – generally worn by nurses, waitresses and other people who spend a lot of time on their feet. And their website has their company story, too, so they use personalization.

    You know, the more I think about it, the more SAS (the company, website and physical stores) is like an IM best-practices metaphor, or an entire IM mini-course… ;-)

  • Ruth Clark says:

    As always, a valuable post. There is so much to learn about product creation! I am not afraid of the creation any more or even of the pricing. I think the timing is pretty crucial.

    I am going to be forced to keep this as simple as possible. I can reach for the stars and grab the corner light-post this go-round.

    Wow. You make it sound so simple. I know it’s neither and you have taken on the added role of instructor, also. Has anyone said to you today, “Tiff, we appreciate you?”

    Well, we do. (I feel that I can speak for many people as well as myself.)

  • Sam says:

    Hi Tiffany:
    Great post. Pricing of a product is so vital to its success. And a products price is not based on how many pages it may be, but how much the material and good info provided by a product is how one should value their products. Take care, Sam
    I think the rain is heading our way to Louisiana

  • Hi Tiffany – This was such good info on how to price a product. Many things I haven’t considered before. If I hadn’t watched your video, I think I would have charged $14.95 or something like that.

    Thanks much!

  • Niall Roche says:

    One of the first lessons I was ever taught about pricing is you charge what the market can bear.

    Unfortunately a number of the “guru” types took that to mean “rip people off for as much as you can” – spoiling the IM scene for legitimate marketers.

    Underpricing yourself is one of the toughest things to shake off in your business – I’ve learned that the hard way!

  • Leslie says:

    Awesome advice! Thank you so much. I’m in the beginning stages still…I actually want to get my project done in less than 90 days, however I love reading the tips. A big concern in the back of my mind has been “How much am I going to charge for my book?”. Naturally because I’m a noob, I’ve been thinking under $10, though I honestly believe the info will be worth at least $20 or more…so you blew my thought process right out of the water! Thanks for setting me straight!

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