Pricing:

A key point in the successful marketing of a product is the Pricing, i.e. finding the correct price for it. “Correct” in this context means that selling the product results in maximum profit.

Finding the correct price can be a tricky point. If you set it too high people will not buy the product even when the sales copy is good, setting it too low could mean no profit and that customers might underrate the value of the product. There are a lot of psychological factors to be considered for correct Pricing.

The solution lies in testing different prices. This is easy as in Internet marketing prices can be changed within minutes.

Example: You set the price for a new ebook at $25 for the next 1000 visitors on your sales page. 40 are buying which makes you $1000.

Then you raise the price to $50. Out of the next 1000 visitors only 23 are buying but your net result in this case is $1150.

You raise again to $80. The sales drop to 10 out of 1000 which is $800 for you.

You conclude that $50 is the correct price for this ebook.

There is a marketing trick called Dynamic Pricing as an incentive for potential buyers to buy now. This is done by informing customers on the sales page that the price will go up every …. (hour, 2^nd day, week etc. whatever you choose to take as a time span). So, of course, many try to buy before the raise.

Another very important point in Pricing is the 20/80 rule which states that 20% of your customers make 80% of your income. That means that about 1/5^thare willing to spend more money than the rest. To consider that in Pricing should result in always offering 2 or 3 different price levels. In above ebook example this could be done by selling the basic ebook for the lowest price level but also offering an extended version for a higher price (which might include additional chapters, a downloadable audio file with an expert interview to the subject, free lifetime updates or whatever), and a “premium version” with still additional bonuses for the top price. With this Pricing method you would particularly address these 20% and considerably increase your profits.

Example for a 80/20 pricing method on www.landingpagecashmachine.com .

[Price goes back to Latin pretium = reward, prize, value, worth]

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