i feel this thread is entirely collaborative, that's why we're here. argumentative is good, its only when it decends into meme-bombs that it turns bad. its still a great topic & made greater by strong opinions expressed.
Pricing Strategy for Digital Products
- Thread starter dchuk
- Start date
i feel this thread is entirely collaborative, that's why we're here. argumentative is good, its only when it decends into meme-bombs that it turns bad. its still a great topic & made greater by strong opinions expressed.
lmfao at your sig hack. now that's good shit. i cant even look at it without laughing, its killing me.
Just noticed, hack be ripping sigs. Used since April 2010.
Gonna have to install sig lockdown.
its all in the presentation i guess. we being marketing folks, we put our best foot forward? i noticed just at the end you had the same... says alot biz-wise, no?
Every product is different, and there's no way to lump them all together, and price them using the same methodology. How support intensive in your product? Initial development time? Development time for upkeep? How important is a customer to you, in terms of word of mouth marketing, market research, data mining, etc.?
Would you prefer 100 customers @ $20, or 40 customers at $60? Is having that extra 60 customers in your database worth the initial drop in revenue? Maybe it's the other way around, and you have a support intensive product, so it wouldn't be worth it at all.
Any upsells? Recurring charges? And on, and on, and on to infinity...
Would you prefer 100 customers @ $20, or 40 customers at $60? Is having that extra 60 customers in your database worth the initial drop in revenue? Maybe it's the other way around, and you have a support intensive product, so it wouldn't be worth it at all.
Any upsells? Recurring charges? And on, and on, and on to infinity...
By level playing field, I assume you mean this little tidbit of emotional maturity...
I have tried both routes, forcing my demo to buy at my suggested price and fuck the resistance, and I've split tested like a mofo letting the market tell me what it will bare.
I've found among 40 or so products later that if you don't let the market give you your magic number, you'll probably shoot yourself in the foot by not finding that sweet spot. You might make much more sales with smaller price points, or you might make the same $ or more with even less customers/support on higher pricepoints - and there is definitely no universal formula, for digital products especially.
Now I always rely on the markets to give me the truth about my value/product/pricepoints and I listen very carefully, disregarding competitors but also keeping aware as I tend to think that nobody likes to buy the cheapest, or the most expensive if they have many options, if not then you're in a different boat being the only provider/product in the niche you have much more room to play. Also when it comes to things like recurs, partitioned payments, trials, etc - most metrics go out the window until you're done your branding and have a the offer ready for small tests, no two offers are ever the same nor is the response from the market.
Also once you're out of the gate and if your products gain big momentum, you are fully open to re-evaluate pricing, backends/upsells as I learned with my biggest offer, I raised the price one day about 9 months into growth by $10 (from $29 to $39) and actually started selling more units per day as I was way undervaluing myself and thus the markets thought it looked too cheap/too good to be true/whatever, but this only happened 9 months in, the first tests $29 was my highest converting price. So then I tried $44-$47-$49 and none of them compared, $39 was my sweet spot.
Lot's to be said about pricing however I don't think it's something you can predict, or teach, or say a certain formula will work better than another as there's way too much variable change in each offer.
I've found among 40 or so products later that if you don't let the market give you your magic number, you'll probably shoot yourself in the foot by not finding that sweet spot. You might make much more sales with smaller price points, or you might make the same $ or more with even less customers/support on higher pricepoints - and there is definitely no universal formula, for digital products especially.
Now I always rely on the markets to give me the truth about my value/product/pricepoints and I listen very carefully, disregarding competitors but also keeping aware as I tend to think that nobody likes to buy the cheapest, or the most expensive if they have many options, if not then you're in a different boat being the only provider/product in the niche you have much more room to play. Also when it comes to things like recurs, partitioned payments, trials, etc - most metrics go out the window until you're done your branding and have a the offer ready for small tests, no two offers are ever the same nor is the response from the market.
Also once you're out of the gate and if your products gain big momentum, you are fully open to re-evaluate pricing, backends/upsells as I learned with my biggest offer, I raised the price one day about 9 months into growth by $10 (from $29 to $39) and actually started selling more units per day as I was way undervaluing myself and thus the markets thought it looked too cheap/too good to be true/whatever, but this only happened 9 months in, the first tests $29 was my highest converting price. So then I tried $44-$47-$49 and none of them compared, $39 was my sweet spot.
Lot's to be said about pricing however I don't think it's something you can predict, or teach, or say a certain formula will work better than another as there's way too much variable change in each offer.
some people are just fucking assholes man, it's all good. this thread was what I need to permanently leave wickedfire.com blocked in my hosts file because all I wanted to do was share some information about value based product pricing and I get a prick on my back calling me ignorant then backpedaling when called out for attacking character versus attacking argument.
Fuck it, I'm done. I'll just let me sales speak for themselves from now, I'm done pandering with god damn pendant I'd rather just crush them in the areas they think themselves superior.
Peace
I thank you for this thread. It doesn't really matter if I share your opinion or not. I read and drew my conclusion from those articles and few responses here and that is what matters. Creating a discussion and everyone finding the truth for himself and testing it.
+rep
I think that anarchy would make for a bad society. I love the state, and wish that the state had more power. No state would be bad and allow big companies to amass cash, whilst poor people can hardly afford homes or a roof over their head.
Value is also something that can be calculated from a series of calculations and is nothing to do with what people are willing to pay. I can prove it, it's called net present value.
please don't hurt me, if I can't troll wf, where can I troll?
That is incorrect. The i in the formula = Interest rate and that is "what people are willing to pay"
I'd rather spend my time talking to argumentative people who are willing to question me than talk to a bunch of people blindly praising me.
One will hurt some feelings but help you arrive at the right answer (whether it is yours or his) and one will make you feel good about your answer without guaranteeing it is the right one.
The latter option feels a lot better but is far more dangerous.
Nothing in this thread has changed my belief that the pricing has to be tested.
This is a very relevant thread for me because I'm developing my own digital product, and wasn't sure how to proceed as far as price. There are so many variables at work: timing, competition, niche, quality of product and how skillfully you sell it.
There's no mathematical formula you can apply. Ultimately, I think the decision to buy is an emotional one. By using your pitch to drill deep and penetrate a nerve, you will get them to hit the "BUY NOW" button.
This is a very relevant thread for me because I'm developing my own digital product, and wasn't sure how to proceed as far as price. There are so many variables at work: timing, competition, niche, quality of product and how skillfully you sell it.
There's no mathematical formula you can apply. Ultimately, I think the decision to buy is an emotional one. By using your pitch to drill deep and penetrate a nerve, you will get them to hit the "BUY NOW" button.
Thanks dchuck and guerilla for those aweosme posts. I am currently converting them into a WSO. Will let you know how that sells at various pricing points as I push the limits of scarcity and fear into the minds of great warriors.
How about a compromise. Leave WF out of the host file and put the guy "punching up" on ignore. This could still be a good thread if you just respond to everyone else.
The following +rep is for the hundreds of great posts you have contributed that made this a better place. Hate to see it end.
Agreed, Darrin I've learned a lot from you over the last couple of years, it'd suck to see you go.
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