When it comes to pricing, where’s the sweet spot?
A common fear is that if you charge too much, you’ll lose sales.
At the same time, if your price is too low, potential customers may doubt the value of your product… and you’ll lose sales.
So what’s the solution?
I learned early in my internet marketing career that knowing how to think about pricing is essential to knowing what to charge.
There’s a subtle psychology to it that every entrepreneur should understand. This video explains it.
Andrea De Candia
Thank You for sharing the break points prices.
this is so helpful …..it is my biggest sticking point to moving forward…..Thankyou
Good morning! It’s nice to hear the philosophy behind this. It isn’t just the marketer pushing a gimmick, the price is another chance to communicate with your avatar!
Interesting stuff. I took an approach in my market where I first decided I wanted a premium priced product. I then created the offer to live up to that price, instead of creating the offer and then trying to figure out the pricing. It’s working well vaulting us past 1M last year.
We launched our range of MAGFAST chargers after reading Launch and attending PLF… and in an industry with an average order value of $20-30 we have an AOV of around $400. Here’s how:
1: We have, we believe, designed something significantly different and way better
2: We take the time to articulate it in a carefully prepared presentation
3: We’re not shy about asking folks to join us on the journey of brining our vision to life
Thank you Jeff.
Oh- and PS: we’re one of the first to use PLF techniques to raise funding via a share offering. Crashed the servers and sold out in a couple of hours.
Yes. Thank you Jeff!!!
Hi Jeff, thanks for your insight!
I thought about these ideas previously, but is always helpful to have them summarized and told in a clear and short way.
Thanks Jeff! Very helpful insights! I am at the beginning of my pricing education and it is so good to be reminded that potential customers will question the value of the product if the price is too low. And I think my prices probably have been too low, since quite a few people have said my art was cheap. Also in the very beginning I was feeling super uncomfortable if somebody said my prices were high, but I think that is part of the picture at a good pricing level.
Why do you no longer suggest doing a survey on pricing? Thanks for your video!
@Jen: because in my experience, you don’t get great data. Of course, your market/audience may vary.
Thanks Jeff, I was struggling in my head because a gave a higher price proposal than I originally was going to do. I have been second guessing myself since. This video eased my mind. I appreciate you!
Thanks so much for sharing your experiences with us, Jeff! As a PLF Alumni, it’s been great to constantly get your insights as I navigate my recently launched B2B SaaS venture. I see now, that my pricing is very likely too low for the niche market I’m in and is needing adjustment. Going to get on this now! Onward and upward! Cheers!
Hello there Jeff,
I learnt about you all the way in the UK. I was very unsure at first but I’m smitten now. I love everything about your method, so simple yet explosive. I’m a copywriter and I believe this will expand my business on/off line.
I really do appreciate people like you, so thank you.
As always, terrific stuff Jeff, oh wise one! I’m wondering what you have to say about payment plans and your guidance around those. I offer payment plans for my 8-week courses (~$797) but I’m really conflicted about what percentage to add as a surcharge. I believe it’s ironic (and kind of a cruel twist) to gouge people who can’t do the flat PIF and have to default to a payment plan with a huge surcharge. (My work involves emotions recovery and I want it to be accessible to those who want it.) At the same time, I’ve been told that you want to create a bonus for people to PIF so that you can avoid the messy repercussions of requested refunds and failed payment plans – because when people encounter financial challenges the first thing they look at is dropping monthly payments. When PIF, it’s psychologically a “done deal.” Would love to get the Jeff team’s insight on this! Thanks so much!
It’s especially difficult for your first course / product, because you have no feel for how it will be received or who truly wants/needs it.
Thanks for this, though. I’m doubling my price. 😉
Helpful remainder to ask about our avatar / primary audience.
Thank you Jeff,
This was an excellent video. Very helpful information you laid out in the three points.
– don’t price too low
– price slightly under the price barrier
– At times, set a round number for ‘prestige’
Also, thank you for answering that question by ‘Jen’. That confirmed my thinking that when you ask people what they want to pay for your product, they will not give you the real number. I believe that you only will know the price they are prepared to pay, is the minute they actually hand you to money.
At the moment I price my product (which is about how to connect entrepreneurs with economic mindmaps) at 497 USD, and people buy it. Now I need to find out how I can increase the price.
All my best and thank you for these weekly videos. I’m always looking forward to them.
Thanks for the great video, I feel it is also energetic. If I am offering a workshop for $37 I felt like it was TOO LITTLE for the offer and it did not feel right for me, so I looked into my intuition and it says it would be better to offer at $97 in a couple of days because I am offering so much content for too little of a price. I also feel different with a higher price offer, because
I know that I am offering that value.