When you create a report or a video to sell online, the second question you worry about is what should I charge for this training that I have just created or plan to create. If I’m teaching someone how to repair all kinds of items within their home – is that something that someone will pay $10 for or $100 for,
If I’m showing someone how to create graphics using Adobe Photoshop, is that the kind of training where I should only charge $5 or should I charge in the thousands of dollars,
Now there are three factors in determining what to price your information product. Look at the price resistance, then price slightly higher than the competition, and finally examine what amount of value someone can get once they purchase and consume your information product.
I know that it’s tempting to give away all of your knowledge for free, or give it away for one dollar or five dollars or ten dollars, but there are people out there willing to pay good money for good information.
I have sold many-many $10, $20, $30, even thousand dollar courses on how to program web pages, on how to write compelling sales letters for web pages, and many other topics. Every time that I price too low, I knew it. Every time someone would buy from me without even thinking. If I sent out a promotion or someone landed on my web page and bought in just a few seconds, I know that I priced too low.
What happens is, many people will spend weeks and weeks creating the perfect training course, and then only sell it for $5, and the reason is because people will buy based on it just being $5, not based on what it is that they have to gain from this product.
I want to tell you about something called price resistance, and that means that what you want someone to do is come to your web page, look at your price and then not be sure if they are ready to buy or not, examine your offer, examine what it is you’re selling and based on that they will buy.
It seems kind of silly, but in the long run – you’ll make more money. You might make slightly less sales but you’ll make more profits because you priced at a higher price.
The next thing I want to tell you about is to price slightly higher than your competitors. The average person selling any kind of information online or marketing online has a confidence problem. They can only bring themselves to charge a few dollars for that thing they’re selling.
What ends up happening is in comparison you will look better if in every single way somebody compares themselves to you, and the only difference is that you charge higher prices, then the perception is that you are worth more money. So look at what all of your competitors are charging, maybe even average out that price and then charge a slightly higher price.
And the final thing to look at, what overcoming fear of price, is to look at how much more value someone can get before and after they buy your course, before they buy your product.
I’ll give you an example, if you have a product out there, even a short report that can show someone how to save a thousand dollars on their taxes this year, then how much is that worth, Well it’s worth over a thousand dollars. If someone uses that report, they’ll save a thousand dollars in taxes every single year after buying it. And so if you charge $500, $100, even $50 would be a bargain because the value they get out is much higher than what they paid.
Now sure, it might not have taken you a lot of time to create it, it might not have cost you a lot of money to deliver that product, but what you need to look at is the value someone gets after buying from you.
When selling a digital information product, you want price resistance. You want to charge slightly higher than your competitors, because you are selling based on the discounted value, discounted price they get from buying from you, and that is all that really matters is that you’re solving their problems at a discount.