I used to sell suits for over $1,000 dollars each. I was pretty good at it too. I've read sales books and even got my degree in Economics. Then I decide to learn Google Ads, joined a networking group, and sold my services anywhere from $300-$500 per month. And people bought, even though my skill-level was sub-par causing a very high turnover rate. So I decided to build a website and sell the advertising with some advanced features to a niche I was confident I could bring true value too.
Before we launched (about 3 months ago now), I called 100+ prospects, and gave them a choice between a free option, and a paid option. Everyone I spoke to took the time to sign up with the free option (positive market response now that I think about it), and only one person gave me $800 for an annual subscription. Since that time, he hasn't used the product at all, so I have to believe he forked out the money because he liked me, not because he saw value in the product.
My original offer was an annual subscription dependent on the average price of the product they were selling - confusing, I know.
So after 2 months of being launched, we got a lot of great feedback for how to make the website better. We're currently working on version 1.1 and I've decided to DRASTICALLY lower the price. The reason being I was originally pricing it at what I envisioned the product to be, not what it is in its current infancy.
I'm trying to decide between $29 a month and $49 a month. They look like the same number to me, but I don't think my audience will see it that way. Honestly, I believe my product to be a really nice tool to have. But I look at other digital products and I see how low-priced they are relative to the value they provide. For example, Elementor charges like $49 A YEAR! That's just crazy considering how awesome it is. And Life Alert, literally out here saving lives for like $90 a month. Or perhaps the best example, @MJ DeMarco charges $9/mo. for the INSIDERS subscription - crazy value at a low price.
Don't get me wrong, I'm a salesperson by trade. I'm all for selling higher-priced items. But it's different when the product I'm selling is something that I created that is unheard of in this particular market place.
I spent $17 on apples yesterday. ON APPLES!!! I'm selling advertising to a very niched market. If they get one customer because of my advertising then they just got a huge return on their investment. My Dad said I'd probably get the same amount of resistance for both $29 and $49, so I might as well charge the $49. Thinking about it, if someone doesn't see enough value in it to pay the additional $20 and they only based on price - do I even want them as a customer anyway?
I just learned about this study done where a company ran an experiment: they sold their product at 2 different price points. The result: they sold the same. People didn't buy more because it was cheaper.
I have a feeling the same thing would happen with my stuff. The people who don't buy at $49 a month, probably won't buy at $29 a month either. And the people who do buy at $29 a month, will probably see enough value in it to pay $49 a month.
Guess there's only one way to find out!
Before we launched (about 3 months ago now), I called 100+ prospects, and gave them a choice between a free option, and a paid option. Everyone I spoke to took the time to sign up with the free option (positive market response now that I think about it), and only one person gave me $800 for an annual subscription. Since that time, he hasn't used the product at all, so I have to believe he forked out the money because he liked me, not because he saw value in the product.
My original offer was an annual subscription dependent on the average price of the product they were selling - confusing, I know.
So after 2 months of being launched, we got a lot of great feedback for how to make the website better. We're currently working on version 1.1 and I've decided to DRASTICALLY lower the price. The reason being I was originally pricing it at what I envisioned the product to be, not what it is in its current infancy.
I'm trying to decide between $29 a month and $49 a month. They look like the same number to me, but I don't think my audience will see it that way. Honestly, I believe my product to be a really nice tool to have. But I look at other digital products and I see how low-priced they are relative to the value they provide. For example, Elementor charges like $49 A YEAR! That's just crazy considering how awesome it is. And Life Alert, literally out here saving lives for like $90 a month. Or perhaps the best example, @MJ DeMarco charges $9/mo. for the INSIDERS subscription - crazy value at a low price.
Don't get me wrong, I'm a salesperson by trade. I'm all for selling higher-priced items. But it's different when the product I'm selling is something that I created that is unheard of in this particular market place.
I spent $17 on apples yesterday. ON APPLES!!! I'm selling advertising to a very niched market. If they get one customer because of my advertising then they just got a huge return on their investment. My Dad said I'd probably get the same amount of resistance for both $29 and $49, so I might as well charge the $49. Thinking about it, if someone doesn't see enough value in it to pay the additional $20 and they only based on price - do I even want them as a customer anyway?
I just learned about this study done where a company ran an experiment: they sold their product at 2 different price points. The result: they sold the same. People didn't buy more because it was cheaper.
I have a feeling the same thing would happen with my stuff. The people who don't buy at $49 a month, probably won't buy at $29 a month either. And the people who do buy at $29 a month, will probably see enough value in it to pay $49 a month.
Guess there's only one way to find out!
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