Pricing Your Product

Discussion in 'General Marketing' started by YoungMoulah, Jul 7, 2009.

  1. #1
    When pricing a product sometimes this can even affect the AMOUNT of sales and your REVENUE. I know this is obvious but hear me out...

    I once priced a product about a year ago at $47. It was a good quality product that was well written and informative.

    I had a little re-think and changed the price to $147. Granted, my conversion rates halved BUT my income went up.

    Something to play about with.

    I think the reason behind this was that because the product was now $147 it was actually perceived as a better product. So this created a need from the customer to buy it.

    Another good point was effectively my advertising costs were cheaper. I spent more money but again, my income was creater. Say I spent $20 on adwords I would get back two sales so I would make $74. I'd spend the same $20 on the exact same adwords campaign and made back $127. A lot more. So, naturally I poured more money into adwords for my keywords and did pretty well.

    Definately something worth doing. Over a day, a week, a month, a year it certainly adds up.

    YM
     
    YoungMoulah, Jul 7, 2009 IP