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.
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.