Pricing For Big Profits

Even the pricing secrets can be discovered. Marketing Gurus don’t tell you… TalkBiz News presented a special report by Paul Hancox.

One of the most important questions you could ever ask is if you are selling a product or service.

“How do I determine the price of my product or service?”

For some retailers, pricing is easy, they just add a profit margin to their costs, and they have the price.

Digital products that have lower costs are harder to value. How do you price a 30 page PDF report or a 15 video download set?

You might be wondering…

Why does pricing matter so much anyway?

There are a couple of reasons why pricing is so important.

If you set your price too high, you may end up hurting your business.

People may view your product as cheap and lacking in quality if you set it too low. It is possible to have too low a price.

Current customers may complain that they have overpaid if you set it high and then drop the price.

This is a question that needs to be asked.

How do you find the “right” price?

I have been marketing on the Internet for over 10 years now, and I have long been an advocate of price testing, but what I have discovered is that testing is only part of the story.

I decided to put it all together into a report, called Pricing For Big Profits, because I realized that there was more to pricing than I thought.

Consider the following six commonly held beliefs.

Do you believe these six Internet pricing “myths”?

They aren’t myths in the traditional sense, but they are less true than many marketers think.

Lowering your prices will increase your sales.

It sounds like common sense. Everyone likes savings, bargains and discounts. In my report, I will show you several examples of where sales went down as the price went down.

There are specific circumstances in which this is likely to happen, so it is important to know what they are, which I will explain in the report.

There is a myth that you can never have too low of a price.

In my report, I will show you an example of where lowering the price by $1 actually killed sales. The price was too low. I will explain why people stopped buying when the price was lowered.

Pricing too far above competitors will kill sales.

In the report, I will show you a specific example of where pricing far higher than the competition was used as part of an effective pricing strategy. Don’t do this unless you understand the circumstances in which it can work, which I’ll explain in the report.

Asking your potential customers what they would be prepared to pay is the best way to determine your price.

The last people you should ask about pricing are your potential customers. It’s a critical piece of understanding, but very few marketers understand it.

Customers can never have too much choice.

I will show you how research has shown that giving customers too many choices can shrink sales and increase the risk of refunds.

Adding more choice is likely to increase your sales. Do you know what those circumstances are? You need to read my report if not.

Prices that end in 7 are the best.

Internet marketers believe that prices ending in 7 are more popular than other prices. I will show you that this is not always true.

You could be losing money if your prices end in 7 because other people tell you they work best.

In addition to busting or challenging these six pricing myths, I will show you many of the psychological facts that go into pricing and price presentation, some of which have only recently been discovered.

In addition to that…

Here is what you will discover in this report.

• How RAISING your price can increase sales, and under what circumstances this is likely to happen. (But make sure you know what they are BEFORE you do this! – p49)
• What Dell and magicians have in common, and how you can use their techniques to influence people to want to pay more. (p56, 57)
• Why do retailers still prefer prices ending in 9? In particular, discover the surprising truth about prices ending in 7 and 9 (as well as 99 and 00) that most Internet marketers won’t tell you – or simply don’t know! (p65-69)
• If you’re going to test your prices, how to do so safely and avoid the mistakes that cost Amazon.com and Netflix.com money. (p17)
• A powerful psychological secret that will enable you to set a high perceived value on your product or service, and raise your prices easily. (p40, 41)
• If you’re considering selling through ClickBank, here’s two simple and time-saving formulas enabling you to quickly calculate (a) the minimum price you need to charge to pay out a fixed dollar commission, and (b) the percentage affiliate commission you should set. (p43-46)
• How adding extra choices can help you sell more, but too many can actually kill sales. Find out exactly how and why here. (p52-58, p60)
• Four pricing models you can follow, to sell products ranging from $7 to $1,997. When you understand the mindset of potential customers at different price points, you can sell high OR low priced products – or both! (p72)
• Discover the 3 M’s – the 3 most important factors in deciding your price points…
• … and much more. So then…

Why do you need this report?

Everyone who sells their own product or service, or is thinking of doing so at some point, needs the valuable knowledge contained in this report.

A bad pricing decision can cost you money and restrict your sales.

In my report, I will show you the relative importance of each factor and explain how they affect the price of your product.

This is the most important issue.

You can get a free download of Paul Hancox at nextskillup.com.