Are you one of thousands of struggling entrepreneurs scared to overprice your products? Now, you can stop peddling your wares for pocket change, and learn to raise the price of your products inconspicuously, (or price a new product higher initially), to actually INCREASE your income.
The following 7 tips will help get you on your way:
Realize that there ARE going to be several people that will reject your high(er) prices.
Work to convince these prospects that your products ARE reasonably priced by getting them to look at the cost in terms of long-term investment — not initial out of pocket cost.
For instance, if you charge $75 for an online business startup guide that (thoroughly) covers such things as taxes and accounting, website design, ezine startup, and product creation, stress the value of that all-inclusive package. Remind them that, if they had to get all of the information in your book from several sources (i.e. a book on ezines, a book on taxes, etc.), they’d probably be spending several hundred dollars instead of a measly $75.
Or, remind them that if they had to take the time to figure out all of the info in your book on their own, it could take weeks. Or months. If they put a high value on their time (and I think your ideal customers should), they should then have no problem spending such a small sum on such a sound investment. After all, what’s $75 worth in comparison to several MONTHS of their time?
Know when to call it quits.
Work to convince those “hard sell” customers that your product is definitely worth its price, but don’t work TOO hard on them.
Remember, there are several ideal prospects in your new niche that won’t think twice about spending what they’ll feel is “chump change” for a quality product. You can’t please everyone all of the time, and those penny-pinchers are NOT your ideal prospects. They’re the ones that take months to make a decision, then still end up leaving you out in the cold.
Don’t get stuck in the middle.
Either your prices are “inexpensive” — or they aren’t. Don’t get caught in between. If you’re going to go high, do it boldly and with confidence, or you’ll risk the “in my opinion, your products are a little pricey” syndrome. You want to avoid creating that kind of indecision in your customers. Let them see immediately that your products require a high initial investment, if that’s your goal. But…
Be sure you’re able to back up the high price of your products with quality.
There’s a pretty good “duh” factor on this one. If your product is only worth $50, don’t try charging $200 for it — at least not until you find a way to add on to the product to increase its value, in order to match (or ideally exceed) its price.
Re-evaluate your marketing strategies to attract the right kinds of customers.
What kinds of customers have you been attracting? Before you get in a huff asking me how you’re supposed to know THAT… think about it. It’s easy enough. First of all, what kinds of questions are you normally asked by potential customers?
“How come your price is so high?” “What makes what your offer so superior to XYZ product that you can charge so much more for yours?” “Can you cut me a deal so I can give you half of the cost of your product? I just can’t afford it.”
Obviously, you’re going to want to re-evaluate your marketing methods and sources to weed out these kinds of “cheapskates.” (NOTE: If you’re being asked those kinds of questions a lot, you may also want to re-evaluate your sales copy. It may not be conveying the true value of your product, if indeed it IS unique, and is worth the price you’re asking for it.)
Second of all, what’s your hits to sales ratio? Although a lot of factors can influence that ratio, it can definitely help you find out if you’ve been attracting the right kinds of customers so far. A higher ratio could mean that your marketing efforts are right on target, and fit your ideal customer profile. A lower ratio could mean that you need to re-assess your marketing strategies to attract the right kind of buyer.
Know the difference between “high priced” products … and “ridiculously priced” products.
To gauge this, you can look at your competition, evaluating both their product and the price they’re charging for it. Obviously, if you’re offering a home business startup guide for $30 with no real perks, and are thinking of raising your price to exceed ABC company’s $99 guide which includes several perks, it would be a bit foolish to raise your price until you’ve added to your offer.
On the other hand, “ridiculously priced” products can still work for you if you know how to swing it. It’s all about increasing the value of those products. When you’re first experimenting with drastically high prices, it may be easiest to work your way up to them, raising the price every time you add value to your product.
You can also ask someone (getting steady sales), who’s currently offering products for similar amounts, what their trade secrets are for pushing their own outrageously priced wares.
Just do it.
No, I don’t work for Nike. I’m just a strong advocate of ACTION.
If you have the attitude that your products are priced too high and are worrying that your customers feel the same way — they probably do. Why? Because you’ve subconsciously given them that impression through your sales copy (if YOU wrote it), and your intimate communications with them. Don’t taint your mind and actions with the deadly stench of insecurity; your sales will surely suffer for it.
TIP: Before I end this, I’d like to advise you to NEVER succumb to the lures of people asking to get your products at a discount, unless they have something concrete and immediate to offer you (as in a true barter). Giving your product away for free or at a reduced price almost NEVER pays off, and can cause you much more trouble than it’s worth.
Remember, whatever YOU think can work CAN WORK. It’s just a matter of getting out of that “mind funk” and figuring out a way to pull it off. And honestly… is that REALLY so hard?
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