Pricing Your Product: How Much?
Pricing will also have a big impact on your sales and this is again something you need to think hard about. Of course pricing high will mean that you have more profit per sale but will also result in fewer sales. Pricing low meanwhile will mean you get lots of sales but don’t get very much from each one.
Your target demographic and the nature of your product are going to impact greatly on the price. A commercial app will sell for much less than a piece of B2B desktop software. Likewise, a video course for personal trainers will sell for more than a 5,000 word eBook for losing weight. The best way to get an idea for how to price your product is by looking at competitors’ products. You might think they’re priced a little high in some cases, but if they can do it – so can you. Often you’ll be surprised at just how much people are willing to pay for digital products.
Of course you can also try changing your price to see if that has an impact on your profits. Tools like ‘Optimizely’ will let you perform ‘split testing’ which basically means creating two versions of your landing page at two different price points and then seeing which one performs best!