To Make More Money Raise Your Prices

The biggest problem in today’s Internet society is that people don’t know how to price their products. The most common mistake is they don’t charge enough.

armand morin

If you want to make a million dollars a year on the Internet,  you  have to understand  you’re  not  going  to  do it from just one piece  of the puzzle. You’re going to need multiple sources. Once you realize you’re going to need multiple  sources, you should look at price points and how they are going to affect you.

Raise The Price Of Your Products

Let’s take a million dollars and divide it by $20 (1,000,000   divided   by 20=50,000). That means we have  to sell 50,000 $20 products in order  to make a million dollars. Selling 50,000 of anything on the Internet is huge, so let’s take a look at the numbers again.

Let’s see what impact simply raising our price point to $97 has. Then, we only  have  to  sell  10,309  products. That is simply by increasing the price to $97, which means we reduced the amount of work we have to do to get the same results.

We reduced the amount of work  we have  to do by 75%,  as well  as the number of sales we have to generate in order to make that million dollars.

You  need  to  understand  the  impact of your  price  point.   Know  exactly how to price your products and what the market will bear.  The fastest way for you to make more money in your online business right now is to simply increase your price.

I have a product I sell for $97.  I’m getting ready to raise the price point to $147.  Later on, we’ll take it up to $197 because I know that is the price point the market will  bear  for that particular product.

How do I know?  I have a competitor who’s selling that type of product for $197  and  other  competition exists that’s  priced  much  lower  than  my product. For example,  most of  my competitors  are  priced  between  the $19.97 and $47.

This other competitor who is already priced  at $197  sells  as  many,  if not more, than I do.  Yet their product is priced almost twice as much as mine.

So if they have no problem selling it at $197, then shouldn’t I be able  to sell mine at $197, as well?  Especially since we will continue  to  add more features to our product over time. The answer is yes.

By simply increasing my price point, I’m   going   to   double   my   income without doing a single bit more work. So, I want you to take a look at your business   and   any   website   you’re running.   Look at  your pricing, and ask yourself two questions.

1. “Are my products priced competitively?” 

If  you  look at the others in your market, are your  products priced at or above the level of your competitors?

2.   “Am   I   selling   my   products based on price?”

If you think your competitive advantage is the price of your products then you have a much bigger problem. Never, ever sell based on price. If you do, you will  always lose in the long run because someone else will always be less expensive than you.

You want to sell upon first the value of  your product.  Whether  it’s  an information product, software product or  any  other  type  of  product,  what type of value do you present with your product?    Second,  what  service  and support  can you give your customers that other people can’t?

The intangible items are really what people buy. They want to know you’re going  to be around.   They  want  to know you provide excellent customer service.   So, go the extra  mile, and give them what they want.

Armand Morin

Armand Morin is an Internet marketing industry expert who has built a multimillion-dollar international business. In 1996, he started with $1.83 in his pocket and no experience and has grown it into a multi-million dollar international business, which has done business in over 100 countries around the world.

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