It has to be one of the worst feelings in the world. You’ve worked hard for the last few months to launch your product. Stayed up late and night..
And because you entered in a price that was simply to high all of it is blowing up in your face. Customers are buying, a few but you’re not getting near the results that you wanted from the product. You scratch your head, look at the copy, talk to friends of yours and as much as you don’t want to admit it all of the signs are pointing to one thing. The price is too high. You’ve got your numbers wrong. Now you’ve got a decision to make. Do you lower the price and refund all of the customers who have purchased to date or send their money back, do you add more value to the package to try to establish greater value, or do you do curl up into a ball filled with fear and disappointment and use this time to catchup on sleep?
Choosing the right price for your product is probably one of the most important parts of a successful launch. You may not notice the difference so much if you only have a little bit of traffic hitting your page and you’re not making that many sales. If you scale into a launch and thousands of people are hitting your page there really is no place to hide if your products price is to high or too low. The statistics will show it and affiliates who are promoting will know about it as well.
There are a few easy ways to work out the best price for your product. In fact this is as easy as answering a few questions honestly. Unfortunately a lot of the time people put this process down to guessing where as it’s not something that you’d ever want to guess.
So here is what you need to first ask yourself.
1. Honesty how good is your product VS the other alternatives out there?
If your product is unique then it helps because you can charge a larger amount and no one has another option to judge your product by. On the other hand if you’re in the same boat as most people then chances are that your product is the same or similar to another product that is out there. Either by what it teaches or in how it’s being sold the ‘Hook’ the product has. In that case then you need to look at the other products that are out on the market because the fact is that if you’re not then someone else will be. From there make a decision based on how good your product stacks up against your competitors where it should be priced. If you see there is competitor to you for example who is pricing their product at $47 and you don’t really have much else unique about your product to theirs then unless you’re going to position yourself substantially differently you’re going to want to price your product around the price that they are selling theirs at.
2. How much is your audience willing to pay?
The next question that comes in is how much your audience will be willing to pay for what it is you’ve created. If you have a subscriber list already or you know who you’re selling to then how much do you think they will be willing to pay?
You don’t want to price too high because then you could miss out on a bunch of people who would have become first time buyers from you and possibly purchased more from you if you had priced the product correctly. You don’t want to price the product too low because it can devalue your brand depending on how you’re positioning yourself and it obviously results in making less money than the product should be making.
You want to find some middle ground here.
3. Is there a money or strong value angle attached to your product you’ve made clear within your salescopy?
This is more important in some industries than others. For the most part though it’s probably the same everywhere. People buy based on emotion not on logic. You might logically have a product that is going to be able to improve someones ability to do something however if you are not leveraging emotion it becomes a harder sell. The key here is to make sure that you attach your product to helping people to achieve some sort of end result. That end result might be related to making money, it could be that someone will be able to lose X amount of weight or learn how to speak fluent French. You need to have an angle that appeals to your users emotion and if you have a good hook then chances are you can charge a higher price. If you don’t then it’s more difficult to charger larger amounts.
4. How good does your product or software look?
This comes into play a lot if your product has a demo component to it but it also will impact how a visitor establishes a products value. After all no one really wants to buy something that doesn’t look like a certain level of care has been taken to put it together. Look at your product and compare it to other products in the same niche. Are you at their level in terms of presentation? Above their level or below it? Honestly look at it because again your visitors are going to be thinking about it. If you see that you want to charge more but you’re below the value of most products out there in your niche then it might be a good idea to consult a UI designer to get their help to increase the value of your product.
5. How closely does your marketing material match your product or software?
Awhile back there was something called ‘Blind Copy’ it was basically the art of selling something without actually telling your visitors what it was they were buying. At it’s core it’s emotional selling. The problem was that the products that did this usually ended up having huge refunds rates because people would realize once they got into the software what it was and immediately regretted their purchase. They’d feel bad because they are acting on emotions. The emotions they felt reading the salespage was excitement, intrigue and wonder. They got into the software and suddenly felt almost immediately emotions of disappointment, sadness and fear that they had been ripped off. So its worth mentioning here that if you want to sell products online make sure that your marketing material closely matches what people are going to experience once they get into the product. That way you’re going to have lower refund rates and it also means that you’ll be charging what people will perceive as a fair price because they can see what they are in for.
From there you can get a better idea of what someone might pay.
Here is one piece of advice that will save you a lot of time and money. Start low instead of high. If you have doubts about your products price, even the slightest doubt. You can always increase the product without any issue after you’ve made some sales and done some testing. Its near impossible to lower the price though if you realize that you’ve priced it to high and it’s not converting. A few months ago the very scenario I’ve laid out here happened to someone I knew. It was a launch they had planned for months, worked hard on for months and it was a software so they had actually invested a ton of money in it.
They had a huge amount of support, everyone was talking about the software and sending emails about it. 5 hours into launch though they were sitting on about 10 sales. Like $1000 – $2000. Everyone was surprised and disappointed by the results. The problem was they had actually overpriced the software by about $1000 – $2000. They were trying to charge a monthly and yearly price on the front end and it was a high amount. So what they did is they first of all emailed all of their current customers, they cancelled their rebills and gave them free upgrades or offered a refund off of their purchase so they could rebuy lower if they wanted to. They emailed everyone and owned up to their error. From there they lowered the price to what it should have been which was a $197 one off. They changed the monthly and yearly option to the OTO1 and sales started flooding in that night about 15 hours after launch. After starting off with an absolute disaster they worked their butts off through the day to change the offer so it would work. From a failing start they ended up generating half a million dollars within their first week.
Everyone gets this wrong sometimes. It’s happened to me several times. Hopefully this plan prevents it from happening to you however if it does there is no other option than to face it honestly and do all you can to fix the situation and save your launch. Hopefully you never find yourself in that position. If you do then refer back to this video to help you get through it. Thanks for watching.