Now things are getting exciting, because your package is ready to go! But before you can start accepting orders, you need to decide on a price.
At the beginning of this process, you basically decided on a rough price point – either somewhere in the neighborhood of $20 or $97. Now you need to make a final decision about the exact price-point.
Follow these tips and steps:
Do Your Market Research
The first thing you want to do is research similar products and packages in your niche to see how much the competition is charging. Ideally you want to compare apples to apples – i.e., other packages. If others aren’t selling packages like yours, then compare products that are somewhat similar, like courses, access to membership sites and similar.
As you do your pricing research, ask yourself these questions while comparing your package to similar packages:
· What makes my package worth MORE?
· What makes my package worth LESS?
· How does my branding affect pricing?
· Does my website and packaging look professional and reflective of the price point? (E.G., you can’t sell a $100 package on a $5 website, if you know what I mean.)
· Can I justify my chosen price point?
Generally, you’ll find that other similar packages will fall within a price range (such a $5 to $50), with most falling into a narrower range (such as $17 to $37). Start by focusing on this narrower range, and then price your package up or down depending on the answers to the above questions.
When in doubt, pick something in the middle or the narrower range. So, for example, if most marketers price similar packages from $17 to $37, you’re generally safe with a price point around $20-$25.
Follow Pricing Best Practices
Marketing researchers and experts have shown time and again that prices ending in “9” or “7” tend to do better. For example, instead of using a price point of $20, you’d choose one of the following:
· $19.99
· $19.97
· $19
Or instead of choosing $100 (which psychologically seems like a lot), you choose one of the more “palatable” figures of:
· $99
· $97
You can of course choose $99.99, $99.97, $97.99 or $97.97. At this level, however, it looks less expensive to drop the cents and just use $99 or $97.
Will that work for your audience? That brings us to the final point…
Commit to Testing
While the guidance above gives you a good starting point when it comes to picking a price point, ultimately the only way to discover the best and most profitable price point is to let your audience vote with their wallets. This means testing different price points such as $19 and $29, as well as testing small increments (such as $19 versus $19.99).
TODAY’S TASK: Your task for today is to do your market research and pick a price point for your package. Then commit to testing this price point in the future using a split-testing tool.
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