How Do You Set The Price?
When you create your product, the most crucial time is how much your product worth? Some gurus said that you set the price according to your effort. And some said make it a little lowers than your competitors, so you get more sales.
So when you heard from this people and that people, you make confuse of yourself. If you ask me how to set the price, I would say go for both, high and low price.
The strategy is like this, you create 2 websites but both have the same content. The only difference is the price. One website with the price $147 and another one is $17.
Then, drive equal traffics to both sites. What I mean “equal” is you send the same traffics to both sites. Also, make sure that the traffic that comes is your potential customers as they are one step ahead to buy your product. You can try advertising at Google Adwords as they send potential customers to your site.
For site A ($147), you had 1,000 visitors and get 3 sales = $441
For site B ($17), you had 1,000 visitors and get 25 sales = $425
So the conversion rates (buyers/visitors x 100%) are 0.3% and 2.5%. You see the profit difference there? If you only make site B, you could possibly lost $16.
BUT…
Don’t stop there! Now it’s time for you to change the price for site B. Increase the price to $27 and drive the same traffics for both sites (Site A and Site B).
For site A ($147), you had 1,000 visitors and get 3 sales = $441
For site B ($27), you had 1,000 visitors and get 19 sales = $513
You get the idea? It’s time for you to lower the price for Site A, decrease the price for Site A and maintain the price for Site B. Do it frequently until you see the price for Site A and Site B approximately equal. So, that is your MAXIMUM profit you can get!
Cheers!