Hey guys, David Risley with Davidrisley.com. It’ s been quite sometimes when I put a video on the site and sorry about that I’ve been really, really busy. I’m still really, really busy but I figure I really need to start getting these videos on again so I’m going to do that.
I’m not going to make any promises that I won’t be able to get that everyday but I am going to try and to do them more often at least a couple of week if I can, and go from there. I’m also touching our new camera here so hopefully you guys were able to hear me. It’s an HD Camera which hopefully the quality comes in good and all that stuff.
So anyway, I'm going to move right to answering, I've quote some questions, but I do have a little—some backlog actually of a user questions and this one is from Raul Amin. He’s asking about product pricing and basically, this question is how do you determine what to charge for a product?
Now I’ve always said that the best way to make money with the blog is to have your own stuff that you sell. Having product preferably information product is really the best away to make a money with a blog because you get to keep all the money.
Now, you know, let’s say if you go and make this product and then you want to determine, “Okay, what am I going to charge people for?” So I’m going to say there’s not really a hard fast rule on this one. But I want to give you a word of warning here is that most people, including myself, we tend up under value what we offer.
So, don’t come out and saying, “Well, I pay 4 bucks for something stupid like that.” You want to think about it in terms of the value, of the amount of time that’s going to save to the person that buys it and the value to your customer, not necessarily what you perceive as a value. Because if you create this information product more likely you are already some for of an expert in what your product is about.
So therefore, for you it's going to be like, “Yeah, you know it’s not—it wouldn’t be that helpful to me,” and it leaves you to undervalue your own product. So don’t make that mistake. Don’t undervalue what you do and the other thing is that if you charge too little for your product, then a lot of times people are going to say, “Well, that must not be that great.”
There is some truth of the idea that higher price equals high quality. So in terms of determining what to charge: a) I would look at your competition, find out what their charging. If your doing something better than they are, then you can actually charge a little bit more. And when you do your sales page and your marketing for it, just say this is what I’m doing and this is why it’s worth what it is and you just straight up ask for the price.
The other thing that you can do is actually test your price and you know, it’s a matter of how you want to do this, but you could try a different price points and see what you’re looking for is a sweet spot. When you start to know the sells dip off quite a bit, then you might want to stop right there, maybe lower your price a little bit.
You also need to do the math to find out, you know where the higher price you might make less sales, but you might make money in longer run, because you’re making more money per order. So I can’t really come out and say, this is what you charge.
However, those are a few guidelines and hopefully with that, you can start to look around the internet, see what people are charging for similar products and then from there, quote with some ideas in what to charge for your own stuff.
Alright, so that was a kind of flip tip even though I’m not recording this for the flip video right now and I will see you guys later.
Transcription by:
Scribe4you Transcription Services