How to Strategically Price Your Product
Now that you have your digital informational product complete and ready to be sold, the next question is what to charge for it. How much should you ask for your work? That is a hard question to answer but the general rule of thumb is: The more potential customers there are for your product the less you can charge for it and the opposite is true. The fewer potential customers there are, the more you should charge for it.
Think about how products are priced out in the brick and mortar world. In very exclusive shops, where very exclusive products are sold to only a few well-heeled customers, the prices are highÖ.VERY high. On the other hand, prices of similar products are priced much lower in department stores and even lower in giant chain stores like Wal-Mart. The reason that the products are priced lower is because there are a lot more buyers for them and more product will be sold. It is just simple mathmatics. You can sell 10 people an item for $100 each and gross $1000. You can sell 100 people a $10 item and still gross $1000. The fact is that there are more people who can afford to spend $10 than there people who can afford to spend $100.
There is another consideration to be made when pricing your informational product and that is that it takes the same amount of effort and energy to promote a $10 product as it does to promote a product that sells for $100. It takes the same amount of time, as well. Your product needs to be priced as high as it can possibly be priced.
The amount of information in the product and how valuable that information is to the customers who will buy the product needs to be considered. Correct pricing is a balanceing act. Have you ever heard the old saying, ìYou can price yourself right out of the marketî? If an informational product is prices too low, people think it will have little value and not be worth their time or effort to read it. On the other hand, if an informational product is priced too high, people might really want it but feel like they simply canít afford the price.
Consider the information that is contained in the e-book or other informational product. Is it new information that will help to solve a pressing problem for many people or only for a few people? Is the information contained in the product available elsewhere or is your product the only place this information can be found? Will it make people look better, feel better, make more money, have fun or solve a problem and is it the kind of information that people would be willing to pay a lot of money for or only a little money for? Will your informational product appeal to a very large pool of potential customers or only to a few people but be of a great value to those few?
Sometimes, adding on some freebies or bonuses allows you to ask a higher price. Bundling products sometimes allows for higher pricing, as well.
Pricing your informational product is a sticky and tricky problem. Pricing it too low is just as bad as pricing it too high. If there are similar informational products on the market, you should check their prices and not price yours too far from the center. Remember thisÖyou can always lower a price but you can never raise a price on the same product so set your price at the highest level you believe that you can get because you will work just as hard for a $10 sale as you will for a $100 sale.