Fortune favours the bold.
Read Millionaire Fastlane
I've Read UNSCRIPTED
- Nov 7, 2017
I agree with this 100%. With this, every individual customer could accept a different pricing for the same product. All because everyone has their own individual perception of the value they receive from the purchase.Start with the benefit. Solve a problem, satisfy a need or a want. Only then think of a product that helps you get there (and adds further considerations to price, such as your COGS, marketing strategy etc.). This way you bring value that a buyer is willing to pay for and can approach pricing at the core of this simple value equation:
Value = Perceived Benefits Received / Perceived Price Paid
When pricing your products you're trying to find one price that suits everyone.. You set this price and all your customers purchase for that price (until you change it, or unless you display your pricing differently on different landing pages or stores). really, everyone has their own price that they're willing to pay for the product because everyone has their own perception of value. One person might be willing to pay $1000 for the same product that someone is only willing to pay $500 for. The trick is to test to find the right pricing that nets you the greatest profit after total volume of orders and the average profit per conversion come into play.
There's a relationship between these two variables:
1. Price of the product (and therefore, the profit per product sold)
2. The volume of products sold.
You might sell 5 products and make $100 in profit per product which nets you $500 in profit. That's potentially a lot better than selling 100 products with $4 in profit per product... Plus with less customers there are less overheads to do with customer service and logistics. If you increase your price too much you'll see a big amount of profit per order but the total volume of orders would decrease as less people are willing (or able) to pay the higher price. The goal is to balance the pricing so you maximize profits on both the volume of orders and the profit per order.
You could start out with a cost-plus pricing model (if you have no idea what your customers would pay) but I recommend doing more customer research first and then testing out different price points and watching the conversion rate change. Many of my clients will slowly raise their prices week over week by 5% or so and watch for when conversion rates start to tip. Probably better to test this out with a proper A/B test but it is still useful.
Still going strong, scripted 10 new videos over the weekend and filming them this week.
I filmed 3 really long Google Shopping videos showing the 3 best methods for setting up the product feed and google shopping campaigns. Each video was about 50 minutes long. The type of videos that I. hope will rank well and bring in tens of thousands of views for the channel. (similar to my 2nd video that I released that now has 2200 views). I didn't check my audio before I sent the footage to the editor and I got back the final videos and the audio is all distorted arghhh. I didn't check the levels!! So I have to go re film those 3 videos again. A bit frustrating but lesson learned. All part of the game.