Once upon a time I created a $17 ebook. It wasn’t selling well. Someone suggested, “Well, raise the price! Make it $97 Look at all the work you did to create that product.”
Actually, the reasons for my non-success should have been obvious to me, let alone a marketing coach. The product wasn’t related to my core offers – storytelling and copywriting. There were lots of competitive offers out there, mostly selling for more than mine. And people who were really interested in the topic weren’t buying $17 ebooks. They were taking courses because they wanted to dig deeply (as well they should).
But if you’ve been around awhile, you know that some marketing coaches, consultants and self-appointed gurus will advise you to “raise your prices.” It’s rare to hear anyone saying, “Maybe you need to lower your prices.” But occasionally you will.
The truth is, price is part of your brand and your business plan. Sometimes you want to keep prices high because you want to attract clients who can comfortably afford this price level, rather than tire-kickers.
=========================================================================================What A Ripoff
By Josh Earl
A few years ago, just after I’d launched my first product online, I got a lot of flak for the price I was charging.
While most books are priced in the $5-10 range, mine was pegged at $19 (an absolute fortune, I know!).
And pretty regularly I’d get an email that went something like this:
“You’re an idiot for charging so much for your book. You should lower the price, because then you’d sell more and you’d end up making more money overall.”
I call this crowd the More Volume Militants.
Their logic seems sound—and it’s tempting to want to “be a nice guy” and drop the price. If you can make more money that way, then you can have your cake and eat it too.
Then there’s the Double Your Price Diehards.
This is a contingent of online marketers and entrepreneurs whose answer to every marketing question is, “Double Your Prices.”
No matter what, charging more always makes your products more profitable.
And when you increase your prices, sales go UP!
So double your prices already! What are you waiting for?
Who’s right in this debate, anyway?
What’s the best price to maximize profits?
Here’s an interesting little case study that I’m conducting right now.
At Simple Programmer, we have this low-end product—a workbook that shows software developers how to start their own software development blog.
For a long time it was priced at $5.
Typically we’d sell around 120 per month and bring in $600 in revenue.
A few weeks back, I decided to try raising the price to $9. I figured we’d lose some sales, but by nearly doubling the price we’d still come out ahead.
Instead sales got cut in half, and we ended up losing about $100 a month in revenue.
Then I decided to go the other way, and lower the price to $1.
Sales went through the roof—more than doubling in fact.
But since the price is so low, we’ll lose probably $400 a month.
Often with pricing a given product you’ll find there’s a sweet spot where number of sales and price per sale balance for maximum profits.
For this product, that’s probably the $5-7 range.
Above and below that you’re leaving money on the table.
The encouraging news here is, it’s not going to kill your business to experiment a bit.
And when you’re offering a good product to the right people, your price can be “wrong” without murdering your sales in their sleep.
Make an offer, see how the market responds.
Then try something else.
Let your customers actions set your price—NOT the rantings of marketing militants.
Click here to learn more about Josh Earl.
Edgy copywriting means joining the conversation with your target audience, using their language. When you use just the right amount of edge, you join a conversation and you even become the topic of other people’s conversations…and that leads to increased conversions from your website and sales letter. [Read more…]
If you’ve been ANYwhere on the internet, you probably are hearing, “You MUST do joint ventures.” When I was new to the Internet, the idea was scary. How could I approach someone to suggest that … um … we could do business together? Especially if that person seemed so busy and successful?
Here’s why that is a very bad idea. Oh, before I start, I know you’re going to tell me that some very successful people called (and still call) themselves renegades.
Well, I would say they succeeded in spite of the name they chose. They’re not renegades; they’re pack leaders. They just want to think of themselves as lone ranger super-heroes.
Reason #1 – Real mavericks don’t know they’re mavericks. They are surprised when someone says, “You’re different.”
Once I was telling a friend, “I don’t know how they could tell I’m a maverick.”
My friend said, “I knew you were a renegade five minutes after we met.”
Reason #2: Real mavericks don’t have to tell you they’re maverick. You know … even if you are a maverick yourself.
See reason #1 above.
Reason #3: There’s no special reason to hire someone because they’re a maverick or renegade. Some mavericks are creatives who can help you think outside the box. Some are just different and not always in a good way. Brand on your client’s benefits, not your weirdness.
This reason also applies when someone tells you to brand based on your curly hair. Yes, it happens.
Reason #4: Lots of people call themselves mavericks. You’ll be one of a pack of .. mavericks. Why would you want to do that?
Reason #5: Lots of people think they’re renegades and mavericks even if they’ve thrived in the corporate world, served with distinction in the military, or fit into a suburban setting with ease. They will feel they own the right to call themselves mavericks and will resent your claiming the title for yourself.
Finally, real mavericks don’t particularly feel pride in their offbeat status. They want to blend in with the crowd. They know they’re … different. In their next life they want to be boring. Well, not that boring…
So what about being a queen or a diva? That’s so turn-of-the-century. Today you’d be considered snooty.
As a copywriter, I’m heavily involved with client branding and messaging. So I put together this free guide to answer the most common and important questions:
5 Quick And Easy Tips To Brand Yourself Authentically And Connect Closely With Your Clients
Click here for instant access.