Tuesday, August 21, 2007

 

Pricing? It's About Market


"Your prices are too low," she sniffed. "She" was someone I just met at a conference.

"How on earth do you know?" I wanted to ask. I've learned to distrust anyone who (a) gives unsolicited advice and (b) gives any advice (solicited or otherwise) based on a 1-minute discussion.

Truth:

Some people make a very good living selling ebooks for $7 and $10. It's not easy: they understand testing, analytics, copywriting, and traffic building. And they found huge niche markets who respond enthusiastically.

In other markets, you sell more if you become the premium player.

To find the right level, test (and test again). Offering a sale will only tell you if your market responds to discounts and specials.

One marketer tested $37, $49 and $67, only to find that $49 brought in the most revenue for an information product.

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