What To Consider When It Comes To Product Pricing 

Product pricing is always a hard thing to figure out. Charge too much and you won't make sales. Charge too little, people might think that your product isn't worth looking at. 

Here's a real example that shows how hard it is to get the product pricing exactly right.

A few years ago, my Mom was working at a drug store, and she was in charge of the health and beauty section. This drug store had a selection of perfume that they were selling.

These were name brands that the customers recognized and that sold well. This drug store was selling the perfume for the lowest price around.

The perfume was selling at high end department stores for a lot more, and customers were buying it from them.

You would think that if they found out that they could get the perfume at a better price, they would shop at the drug store. Not so fast...

Turns out that the customers at the drug store, when they saw the lower price, told my Mom that it couldn't be the same perfume. It had to be a fake knock off product. So they didn't buy it there, and paid more at the department store.

It was the same product, just at a lower price. But if the customer thinks that a lower price means lower quality, you won't make the sale.

Product pricing is less about what you think it should cost, and all about what the buyer thinks of the price of the product. This is a perfect example of how having the lowest price in some cases can hurt your sales.

What You CAN Do

Do some research to see what price your competitors are asking for. You don't have to match their price, but it will give you an idea of what customers are willing to pay.

If you're selling a product that is very similar to your competitors, you will probably have to settle on product pricing that is close to theirs.

If your product is similar, but you have a lot more content, you can consider that when you price your product. For example, if they are offering a 50 page guide for $27, and your guide comes in at over 100 pages, you can charge more.

If you have videos in addition to the guide, you can get even more. To get the most out of your sales efforts, you could offer the guide for one price, and offer a set of videos for an additional charge. 

This way, you get the best of both worlds.

If you're selling a product for a higher price, you could consider offering a payment plan. This is a really good idea if your competition doesn't offer that option.

It’s a matter of testing different prices and pricing variations. I know some people who have a hard time paying $50 for something, but if it costs $49.95, they think it is a reasonable price.

Test different price variants – ending in 7 or 5 or 9 – ie: $19.95, $19.97, $19.99. And try raising your price and see if the sales fall off or if they increase. You may be pleasantly surprised.

This is easy to do. All you have to do is duplicate your sales page, put in the price you want to test, and drive traffic to the page. Track your results, and adjust as needed.

Once you get to the point that you're making regular sales, it is easier to test you product pricing. Try raising your price, and see how it affects sales. You may find that you are getting the same sales volume as before.

If not, go back to the original price.

Product pricing is not something that can be determined by software or some expert. That makes it something that you have to test and track and figure out for yourself. 

Another aspect of product pricing is your sales page. Specifically, where and how you present the price to prospects as they read through your sales copy.

Test whether it works better to put the price at the top of the page, or if you get better results at the end.

Something else you can use to get more sales is to use a count down timer on your sales page. This pricing strategy can get reader to take action if they see that they are going to get the listed price if they buy before the deadline.

Bonuses are another product pricing strategy that can increase sales. And they can increase the perceived value of the product so you can charge a higher price.

Finally, make it easy to order. Make it clear what the reader has to do, what they have to click, what to do next, and what to expect after they order.

You can have the pricing just right, but if they are confused, you'll lose the sale.

You work hard on your business, and you deserve to make a living. Don't short change yourself by selling for less than your competition. Do the research, test, and get the most out of your online business. To your success...