As you prepare for your upcoming product launch, one of your jobs is to find the “sweet spot” when you price your product. Getting this right requires a little upfront research, a little bit of experience, and a bit of testing.
Here are some of the important questions to ask yourself in order to help determine the price that will bring you the highest conversions, lowest refunds, and most profits…
What are your competitors charging for similar products?
What you’re going to find is a range of prices, but you’ll also find a median price or price range. This is where MOST similar products are priced.
For example, let’s suppose your product launch is going to be for a program that consists of 12 Video Tutorials, 3 PDF Reports, a bunch of Checklists and Implementation Guides, and access to a private Facebook Mastermind.
After surveying your competitors, you find that prices for competing products range from $297 to $997. However, perhaps you find that most products sit right around $497. You can use this $497 price point as your starting price, and then slide up or down on the price depending on your answers to the following questions.
How does your offer differ from the competing products?
Next, you want to look at exactly what you’re offering versus what the competitors are offering.
This includes:
- What formats are the other products within your price range? Some product formats naturally increase the perceived value of an offer. For example, a step-by-step video series and regular group coaching with have a much higher perceived and actual value than just a couple of videos and a bunch of ebooks or Guides.
- How do the accessories/supplements/bonuses are you offering compare to what your competitors are offering? Certain bonuses can really boost the perceived value of an offer, such as personal or group coaching.
Before we move on, grab a copy of Jeff Walker’s Product Launch Blueprint where he covers this topic in detail.
Next…
How are your positioning your product in the market?
This is about your overall branding as well as your positioning for that specific product. And both the overall branding and positioning will heavily influence your price.
For example, if you’ve positioned your business as a “low price leader,” then obviously you need to price your products on the low end of the typical price range for similar products.
On the flip side, if you’re using positioning that speaks to high quality, luxury, or uniqueness, then you can price the product at or above the high end of the price range.
One critical point to mention here is something I can still hear Dan Kennedy saying any time I’m pricing a product, and that is this:
“You never want to be the cheapest in your market. Your goal is to be the most expensive and then build the value of your offer so it still seems like it’s a no-brainer.”
All other things being equal, price your product high rather than low. You’ll get better customers, who complain less, and you can give them much better value.
How will you track and test your launch pricing strategy?
So, at this point you’ve picked a price based on what your competitors are charging for similar products, as well as the perceived value of your product and your positioning.
Now what?
Now you need to track and test your pricing. The fastest way to do this is by using paid advertising – such as through Facebook or Google AdWords – where you can send a lot of traffic, test several prices, and know which price produces the most conversions within hours or days. It’s the only way to determine your true pricing sweet spot!
Another big benefit of using paid advertising to optimise your launch pricing like this is that once you can give your JV partners conversion numbers, they will be much more likely to want to promote you to their customers.
Conclusion
If you ask yourself the questions above and follow through with research and price testing, you have a good chance of finding your optimal price for your product launch – the price that generates the most profit while giving your customers awesome value.
Best thing to do is to walk into this process without expectations, because sometimes pricing takes an unexpected turn (such as a higher price producing better conversions and lower refunds). Just be sure to look at overall profits (front and backend) to determine the best pricing strategy for you.
Talk soon,
Rocky
P.S. Being able to create irresistible offers is so important to the success of your business that I’ve put together a Free Cheat Sheet that shows you how to create the perfect offer. To make sure you don’t miss anything as you develop your offer, click here to grab your Free copy of The Perfect Offer Cheatsheet
PLUS: When you’re ready, here are 3 ways I can help you to grow your business using product launches:
1. How To Build A Profitable Launch List.
Building an email list is critical if you plan on doing a launch for your product, service or business. My 1-2-3 List Building Cheat Sheet will show you how to build a responsive list of prospects who are ready to buy from you during your launch. Click Here.
2. How To Create A Signature Product Out Of Thin Air In 72 Hours Or Less
Creating your product does not need to take weeks or months. My 72 Hour Product Creation Guide shows you how to build high value products or bonuses one after the other in 72 hours or less. Click Here.
3. How To Outsource Your Product Creation And Make It Hands Free.
Outsourcing the creation of some or all of your products and bonuses is a great way to save your time for the more important (and more fun) things you’d rather be doing. Grab my Hands Free Outsourcing Cheat Sheet to learn more. Click Here.
And don’t forget to check this out 🙂
Jeff Walker’s free Product Launch Formula training.
Disclaimer: If you purchase PLF through my affiliate link I may receive a referral fee from Jeff Walker, however you will pay no more to purchase the program through me than if you went directly to the Product Launch Formula website. If you would like my personal help as you create your first launch using the PLF process, check out my PLF Bonus offer here.