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product pricing

E-books: Are they too expensive?

By Internet Lawyer

rick-broida-cheapskateOver at CNET News, cheapskate Rick Broida rants Why does this e-book cost $14?!

Please don’t tell Rick about ClickBank.com. He’ll have a stroke when he sees ebooks that sell for $47 bucks and more. Of course, Broida can be forgiven for misunderstanding product pricing because he confesses…

I’m no businessman (English major, natch)

However, there’s a big lesson here for info product marketers. Try to make your digital product look too professional and vanilla (like the slick cover on a professionally published dead tree book), and your prospective client has been pre-conditioned to compare your product’s pricing to what would be paid for a paperback novel on Amazon. You’ll be lucky to get 20 bucks for it.

If your product delivers hundreds or thousands of dollars in value to the client, there’s absolutely no reason to price it for $2.99 like it was a bodice-ripping romance novel that can be downloaded on a Kindle. Let the market decide the value through split-testing but don’t be afraid to charge more for your product if the value delivered to the client justifies it.

Product Pricing: Your Customers Can Afford You

By Internet Lawyer

client-pricingPrice is rarely a disqualifier for your products and services if people want what you have. Notice that I said “want”…not “need.”

Let me give you an example. According to a recent study, I live and work in the wealthiest city per capita in the United States.

Yet even with the wealth, there are plenty of people trying to keep up with the next door neighbors but without the pocketbook to do it. Even though they can’t afford the McMansion, they will buy it on credit. They can’t afford the Mercedes or BMW but they’ll lease it.

If you walked into their homes, you would see rooms that have no furniture. Why? Because public impressions are far more important to them. The wants trump the needs.

Yet if you went to a poor neighborhood in most U.S. cities, you’d see “poor” people driving Mercedes, carrying $1,200 purses, talking on $400 iPhones, and paying $150 per month for premium cable television. Speak of iPhones…as I type this at a local restaurant, there’s a minimum wage employee taking a break and using her iPhone…something that would cost her about a week’s take-home pay.

Again, the wants trump the needs.

If someone tells you that they can’t afford what you’ve got to offer, chances are they’re lying. It isn’t price…so don’t cut yours. Instead, find a market that wants what you have to offer, or change your offer.

Pricing Your Products and Services: How Low Should You Go?

By Internet Lawyer

toilet-sm

With the economy in the toilet, retailers online and offline are competing with each other on price at rates designed to put them into bankruptcy. Call it “Circuit City Syndrome.”

Is it really a good deal for you to make a sale that loses you money both in the short and long term? Hardly.

There will always be some fool willing to work for free or pay for the privilege of working. Don’t let it be you.

Companies that prosper will deliver consistent quality goods and services to their clients on terms that are both good for the seller and the buyer. Anything less is a fool’s game.

Note that you can improve your profit margins by finding suppliers for your business that are willing to work at a loss to keep you as a client. If they want to subsidize your business, take advantage of it.