You Should Keep in Mind the Product PricingJagjit Singh
December 11, 2008
Internet marketing, by its very name is about promoting your products
online. But to believe that internet marketing is all about, well,
marketing would be quite restrictive. Assuming that you have already acquainted yourself with the
intricacies of product creation as well as the myriad forms of
advertising tactics that can be implemented online, we will now discuss
a matter that could make or break your success in internet marketing. Now, what we will be discussing is a subject that many online
businessmen have taken for granted. It is that very thing that would
connect your business to the affirmative action of your visitors. For
more information login to : www.profiting-info-products.com It is that
very thing that would convert your visitors into paying customers. We're talking about the price for your product. How exactly
should you price your product? Naturally, you would want to reach a
range that would recover the investments you have made for its creation
and promotion. This is called the break even point. Anything above the break even point would be considered as your profit.
Naturally, again, you would want to attain as much profit as possible. So these are the two things that determine price: 1. How much you have invested; and 2. How much you want to earn per item
There are two approaches that are generally used when it comes to pricing. Let's take a look at them. 1. Price your product a little over the break even point, and rely on the volume of items you will be able to sell. 2. Price your product substantially higher than the break even point, so that every sale would reap some substantial rewards. If you foresee your product to be a hot seller, then the first
approach would be the best one for your needs. You could just rake in
your earnings through the several sales you will be able to achieve. If
you foresee slow sales for your product, then the second approach would
be more appropriate. Each sale would give you what you need, and you
won't be pressured to sell a lot of items to realize your earnings. But both approaches have their own shares of problems. Pricing your
product too low might just give your prospective customers the
impression that your product is of inferior quality. Pricing your
product too high would alienate a large segment of the market. Personally,
I say that you should price your product for what it's worth. Let the
market forces take care of themselves. If you bestow a fair price for
your product, you won't have to worry about the backlash of
consequences. Each product is a different case, and it merits special
attention when it comes to pricing. Keep this in mind when deciding on
the right price for the same. But here's a very secret tip: you could use the price of your
product to tremendously boost your sales. Yes, you read that right. YOU
CAN USE THE PRICE OF YOUR PRODUCT TO TREMENDOUSLY BOOST YOUR SALES.
This is through a process called dynamic pricing. For more info login
to : www.product-creation-secrets.com Dynamic pricing can create an
urgency that would compel people to purchase your product as soon as
possible. There are some tools that would allow you to implement dynamic
pricing for your offers. The way it works is that you'd offer a product
for an amazingly low price, with a warning that after a specified
period of time, the price would increase. This increase would continue
until the offer is priced beyond your market's budget.
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