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Thread Post 1: Price Point Advice

dr_pie

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This is my first of two tread posts as it relates to my product. I have been posting recently regarding certain aspects of my business and have gotten some very though provoking feedback. That said, I have not painted a full picture as to what my product is and how it works. So I would like to give you all a brief summary and then get your feedback on two key areas with the first one being price point.

My product is selling interviews. I have created a system where you only need five interviews to hire for any job. How this is accomplished is by putting jobs into five organizational hierarchical levels: Entry Level, Professional Level, Supervisor Level, Senior Manager Level and Executive Level. Through the types of questions and format I have developed for each interview, you can tailor each interview for the millions of jobs within each of those levels. Don’t worry this is not my sales pitch to the public but it is just a brief explanation for this post. J

Along with the five interviews, the buyer will also get my 80 page guide book that teaches them in 9 simple steps how to interview effectively so that they get the right hire. Finally as a bonus they will receive a reference interview to conduct proper reference checks.

The target audience is small businesses that do not have the resources and/or skills or knowledge to hire effectively. As we all know a bad hiring decision can be devastating financially. By following my process for interviews, as if you were following a recipe for making a cake, the small business will greatly reduce their risk of making a terrible hiring decision.

So….I am a month out from launching my website to sell this. My initial thoughts were to run this through Clickbank and sell for around $47 (that seems about the average price for products through Clickbank). My second post is going to be about ClickBank so let’s stick with the dollar figure for this post. As my target market is small businesses, is $47 the right amount or should it be higher/lower. My goal as with anyone trying to sell something is generating volume in sales. I want my price point to be as attractive as possible so that a business can look at it and go “I’ve got nothing to lose†especially as I start out and try an build credibility.

Thoughts?
 
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DennisD

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Don't 'test' the market with a $47 book unless you're really 'testing' the market. That is, split test it. Set up a $450, $250, and $50 version of the sales page if you REALLY want to go that low.

Test the results with paid ads until you have 300 purchases. You don't know where your biggest profits are coming from until you test it. Maybe small business think a $47 book can't be worth much, don't see it as an investment, and so don't buy it.

Also: don't ASSUME that your target market are small businesses until you've also tested that. I understand it's important to have an avatar when developing your product... but I like to develop the avatar for the product WHILE conducting real market research. Have you taken small business owners out for lunch, picked their brain, and asked THEM about pricepoint? Unless you have it's dangerous (and expensive) to make assumptions.
 

cashflow3000

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Hey Dr. Pie -

I agree that the $47 price point sounds low. As a small business owner myself I'm thinking a $99 price point would appeal to me. Anything much beyond that and I think "nah, too expensive." That's just me.

Have you read any books on information marketing?

It sounds like you are determined to launch pretty quickly, but it might be worth your while to check out the following:

How to Write and Sell Simple Information For Fun and Profit by Robert Bly
and
The Official Get Rich Guide to Information Marketing by Robert Skrob

Have fun, and good luck!

PS those are Amazon affiliate links above ;)
 

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