Have you ever noticed that products in your niche are priced at varying levels—from $7 to $2,000?
If you are selling the $7 product, you may be asking yourself how anyone could sell a $2,000 product. On the other hand, if you are selling a $2,000 product, you are probably asking how anyone can afford to sell a $7 product.
There is no magic formula that says, “if you have six videos and three PDFs, charge this amount.” Instead, you need to set your price based on the value you deliver. And to judge that value, you need to look at it from your point of view, as well as your customer’s perspective.
Pricing is a matter of comfort and expectations. If you are selling at the lower end of the price range, you probably also buy in that same price range. It is what you are used to. You have a hard time convincing yourself that any product could be worth
$2,000. As long as you continue to buy less expensive products, you will have a difficult time raising your prices beyond your personal comfort level.
Price is about perception. In our society, higher prices indicate better quality, more value, and more expertise. Does price guarantee any of these things? Not necessarily. You can buy a car for $8,000 or $80,000. Will both of them get you to your destination? Yes. Do both of them sell?
Yes. Is there 10 times the quality, the value, and the expertise in the higher-priced car? Maybe.
The point is price doesn’t guarantee anything, other than that you will pay more. But most people assume a higher price means a better product.
One other factor that you want to consider in raising your prices is customer service. When asked, virtually all information publishers agree that the higher the price point on your product, the fewer complaints and customer support issues you have. That single consideration is a strong recommendation for raising prices.
So, how do you raise your prices? Just do it. Announce the price increase if you want a flurry of last-minute sales and give a specific deadline. Or just raise the price. As you raise your prices you need to start raising your expectations as well. It is hard to sell someone a $197 product if you are not willing to pay that much for the product yourself.
Raising prices is both a smart move and one that involves a change in your personal habits. If you cannot believe your product or any product is worth that amount, you will not be able to sell it at the higher price regardless of the sales copy that you write.
Change your personal buying habits and raise your prices!