Hi Guys, I would like some advice about pricing strategy for our product. We have an established competitor that has a product for $99. They offer 70% to the affiliate. We have a superior product that will be launched at the beginning of next month. We would like to be competitive on the price, generous to our affiliates AND try and take some of the market share. Any thoughts on the best pricing plan and affiliate % to do this would be appreciated! Cheers, Prophet
Pricing is a b**ch. You can start off by thinking - do you want to go with perceived value, or competitive pricing? You already said competitive pricing, so you may want to offer the price $20 cheaper, with around %75 affiliate commissions. Depends on the niche as well. Based on the niche and target market, you can make a better assessment of what kind of customers will buy your products - are they price conscience or quality conscience? If your competitors offer the product $99, I'm guess the niche is very high end. I would personally go with a higher perceived value, and offer the product $20 more expensive then your cometitor. Eventually, you will have to dry test with ppc. Good luck!
i would offer it at a lower price, affiliates would be willing to take a smaller cut if they know the product will convert better.
There's only one right answer. That's split testing. If you're serious about releasing a successful product, you gotta pre-test it before launching. Invest a few hundred bucks for a PPC campaign, split test the product at 2 or 3 different price points, and stick with the one that is the most profitable.