Is Your Price Right?

by Bonnie Boots

One of the most troubling questions people have when putting their own product up for sale is "Do I have it priced right"

Getting the price right is critical. Price it too high and people won't buy. Price it too low and you won't earn enough profit to make it worth your while.

Earning a profit is the most important duty you have as a business owner. This may sound simple-minded, but over the years I've worked with an awful lot of people in all sorts of businesses that miss this point.

Earning a profit is the primary duty of any business. Selling beauty supplies or counseling people on nutrition may be your business, but earning a profit is your duty.

Earning a profit is what makes the difference between a viable business and one that will go belly up the first time it's challenged with real trouble.

The world economy is in real trouble right now, and no matter what your business is, I guarantee you're going to be challenged by money issues. You cannot afford to get this wrong. You must earn a profit. And you will only earn a profit if your product is priced right.

Over the last week, I had four people ask me to look at their web sites and tell them if their product was priced right. In every case, my answer was the same. "Your price is too low."

They all made the same mistake: frightened by the economy, they made an emotional decision to drop their price, often into the basement.

They let fear do their thinking for them, and that's always a mistake. Fear is not rational. It doesn't look at web analytics and sales data and comparables and make a calculated decision.

No, fear just yells, "The boogey man is at the door!" and drops the price.

The fact is, if you've done a good job of researching your market, understanding the needs of your target customer, looking at how comparable products are priced and factoring in your own cost of doing business, then you know what you should charge for your product.

If it's not selling at that price, then most likely price is not the problem. Most likely, it's something else, like the traffic coming to your site isn't targeted. That is, you're not finding the people who would need your product and driving them to your site.

Or the problem is that your sales copy doesn't work hard enough to convey the value of your product. People need to be told, firmly and directly, why they need a product. And they need to be told to buy it. If your sales page isn't explaining the features and benefits of buying your product and then giving the call to action, "Buy this now!' in a commanding voice, you're not likely to make many sales at any price.

There's a process to setting the price of a product. The first step is doing a little research, which is quickly and easily done on the internet. The next step is using software to collect data about the visitors to your site.

Simple scripts can let you ask exiting visitors why they didn't buy, gathering valuable feedback so you can improve your sales page. Scripts can let you add people to a mailing list, because people seldom buy on the first visit. Simple scripts can even let you offer a deal to a visitor who is leaving, saying to them in effect, "O.K. since you don't want to buy A, how would you like to buy B?"

You'll find everything you need to price right, including complete instructions on how to decide on a pricing strategy and how to research for comparable prices, along with an array of scripts that will let your sales page interact with your visitors, in my package "Finding The Best Price For Your Digital Product."

Don't let the bogeyman scare you into dropping your prices into the basement. Order "Finding The Best Price For Your Digital Product" now, because knowledge is your best defense against fear.

The answers to all your questions about pricing are answered in "Finding The Best Price For Your Digital Product." Click here for complete information.

 
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