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Internet Marketing Tips - Pricing Your Product
You've finally done it, you've created your first product and you're ready to unleash it on the world. There's just one problem. You have absolutely no idea what to charge for it. You don't want to charge too little as to devalue the product but at the same time, you don't want to charge too much as to scare customers away from buying it. It is certainly a fine line to walk between the two. Hopefully, this article will give you some ideas on how to go about pricing your new masterpiece so that you don't end up with a reputation of being a cheapskate or worse, with no sales to show for it.
One of the easiest ways to determine what to charge for your product is simply to look at what your competition is charging for their products. Unless you have created something that is so revolutionary that nobody else has thought of it, most likely, a variation of your product is out there. Go and see what marketers are getting for it. Then, you have one of three choices. You can charge the same thing that your competitors are charging, thus making the choice of which one to purchase a matter of perspective on which product is actually the best. Or, you can charge less than your competitors, making price point the main issue that they can get the same quality from you for less. Or, you can charge more, claiming that you have the most features for the money. In all three cases, at least you will be in the ballpark because you know what others are charging.
Another method you can use for pricing your product is simply to decide what you feel the product is worth. Regardless of what you think, the marketplace will decide. If they think it is too much money, they won't buy it because they'll feel they shouldn't have to pay that much, especially if there are other alternatives. If they think it's too little, they won't buy because they'll be afraid that it's a cheap product and won't solve their problem, whatever that problem may be.
A third option is to actually take a survey of potential customers and ask them what they would pay for a product like yours. You can then take the average price given or take the price that is given most often.
Unfortunately, pricing is sometimes the one thing that can make or break a product - even a great one. So think about your pricing very carefully before you actually begin to market it.
It may very well mean the difference between success and failure.
To YOUR Success,
Steven Wagenheim
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