Pricing Your Products To Compete For Massive Sales

One of the most difficult challenges you’ll face as an online entrepreneur is pricing your products.  It’s difficult to strike a balance between pricing it high enough to make a good profit and low enough to make sales.

Lowering Your Price To Compete

This is a strategy that a lot of product owners mistakenly try in order to increase sales and gain more customers.  It sounds right — lower your price so that your product is less expensive than your competition.

Unfortunately, this strategy almost never works and will actually result in fewer sales, not more.

People don’t necessarily buy the cheapest product.  They usually buy the product that appears to be the best value for their money.

In addition, lowering your prices means less profit.  Earning less profits per sale may mean that you have a hard time keeping your business afloat.

Here’s a better strategy for pricing your products:

1.  Remain Competitive

You may not want to be the lowest priced product in your niche, but you do want to be competitive.  Take a look at the competition and what they’re offering.

You can’t price your product in a vacuum.

You’re competitors will help to guide you in your own pricing strategy.  You can take a look at the most expensive competitors and the bargain basement competitors and get a pretty good feel for what the market will bare in your industry or niche.

Once you know what your competition is doing, it will be easier to create a pricing strategy that gains a share of the market and creates sales.

2.  Create A Perception Of High Value

The best way to compete on price is to create a higher perceived value of your products compared to your competition.

You may even be able to charge significantly more for your product if you can prove to your potential customers that your product is better than anything else on the market.

The best way to create a higher perceived value is to pile on the bonuses.

Your product may be priced at $97 when the rest of the competition is priced at $47, but if you offer bonuses worth an additional $2,000 you’ll be able to easily convince potential customers that your product is superior.

Perception is everything.

3.  Test Prices

One of the best ways to price your products to compete for massive sales is to test different price points.  There are software products that run on your server that will allow you to test different prices — and they’re well-worth the money.

You’d be surprised how often you can actually charge a lot more for your product than you’d expect.

The idea is to find that “sweet spot” where you’re maximizing profits, not necessarily sales.

Here’s an example:  Let’s say that you can sell 100 ebooks for a $10 dollar profit on each and make $1,000.  You test out different price points and find that you can also sell the same ebook for $50 profit, but you only sell 50 of them instead of 100.  In the first scenario, you’ve made $1,000.  At the higher price, you actually profit $2,500!

Testing is the best way to find the “sweet spot.”

In the end, it’s important to remember that buyers are always much more interested in getting the best value for their money rather than the cheapest product.  Knowing that is how you go about pricing your product to compete for massive sales.

Related posts:

1. Why Don’t SOME Affiliate Products Sell?
2. Only 5 Things People Really Buy?
3. List Building: 62 Super Strategies For Gaining Subscribers
4. List Building: 62 Super Strategies For Gaining Subscribers Part 2

Tagged with: Copywriting • creating ebooks • info product creation • make money • Product Creation • Test Results • testing

Filed under: Product Creation

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