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Aired on July 7, 2020
Episode 48
High or Low? The million dollar question of what to price to sell.
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Pricing your product involves balancing quality and cost. It's crucial to find a sweet spot where the price reflects value, covers costs, and appeals to your target market. Regular adjustments based on market trends and feedback are essential for optimal customer satisfaction and profitability.

High or Low? The Million Dollar Question of What Price to Sell At

Pricing your product or service is a crucial aspect of sales, balancing between quality and the price tag. The challenge often lies in choosing between high prices that might deter customers and low prices that could affect profitability. The key is finding the sweet spot in pricing for increased sales and customer satisfaction.

Understanding the Psychology of Pricing

Pricing isn't just a number; it's a message about your product's value. Here's how pricing psychology affects consumer behavior:

Perception of Value

Your price signals your product's value. High prices can imply quality and exclusivity, while low prices may attract budget-conscious customers. Knowing your target market's values helps in setting the right price.

Impact on Sales

Pricing affects sales volume and profit margins. High prices might mean fewer sales but higher margins, whereas low prices can increase customer numbers but reduce profitability. Balancing sales volume and profit is key.

Building Trust and Loyalty

Fair pricing builds customer trust and loyalty. Customers who feel they're getting value are more likely to be repeat buyers and recommend your business.

Finding the Sweet Spot

Here are tips to find the right price:

Know Your Costs

Understand all your costs, including production, overhead, and marketing. This ensures your pricing covers costs and remains profitable.

Understand Your Market

Research your industry's pricing. This gives you a benchmark and helps position your product effectively.

Test Different Prices

Experiment with various prices to see how they influence customer behavior. Small changes can reveal a lot about customer value perception.

Communicate Value

Make sure customers understand the value of your product. This can justify higher prices and show why your product is worth the investment.

Monitor and Adjust

Pricing should be dynamic. Regularly review and adjust your pricing strategy based on market trends and customer feedback.

Conclusion

Setting the right price is challenging but crucial. Understanding pricing psychology, knowing your costs, and continually adapting your strategy can help you find the perfect balance. Pricing is about creating value for customers and ensuring your business's sustainability and success.

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Biggest Takeaways: 

  • Passive income is a misnomer, meaning that it’s not really that passive. You still have to do work, but relative to the output, the return, it’s a lot less work.
  • When you look at people, a higher touch, more personalized experience, they are more loyal and you build better relationships. It’s one of the reasons why I highly recommend having a high ticket offer within your offerings.
  • If you don’t have a high-ticket offer, implement at least one to generate as much income as you can, to hit your income target, and then start to fill in the gaps with your lower priced offers.

 

Highlights:

  • Selling low ticket offers [02:30]
  • Why passive income really isn’t that passive [03:46]
  • 3 main considerations you need to figure out if a low ticket business model is one that you need to focus on right now [04:07]
  • What I did to build a six figure business within six months with a wait list [10:55]
  • 3 main considerations for selling high ticket offers [12:14]
  • How I went completely low tech and what I actually focused on to get clients [16:05]
  • Why you don’t need to set up another funnel or create another landing page in order to sell [20:17]
  • How to “flip the funnel” to attract high-end clients so that you can make your income goals faster. [20:55]
  • How my client, Ebony, sells both high ticket and low ticket offers successfully [24:23]

 

Previous Episode Mentioned
Episode 5 – How I Hit 6 Figures In 6 Months With Zero Audience, List or Connections

 

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Join Sell With More Ease:

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Send me your burning questions:
Send me your questions and I will profile you here on an upcoming show.

 

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