Client Magnets Official Blog

“How much will clients pay to solve this problem?”

When deciding on a price for your product,  base the price on the value the product delivers to the end user.

Dan Kennedy uses the phrase “selling money at a discount.” What does he mean? Imagine a product that is proven to increase clients’ sales by 20 percent. If a client is already turning over £100,000 in sales, that product is worth £20,000 to them. It should sell for £2,000 – that’s its value. That is selling money at a discount.

If your product can’t be so clearly quantified in monetary terms, offer clients a comparison to show them how much they will save.

For example, if your product will help people stop smoking, calculate how much they are currently spending on smoking, then show the cost savings of that figure and how your product will help them to achieve it.

Though you might be tempted, do not base your price on the cost of creating the product. Evaluating the production cost and then adding a markup is not the way to do this. Neither is comparing your product to other things on the market.

Set your price according to the problem you are solving.

An e-book that you create to solve a specific problem cannot be compared to a book that’s sold in a bookstore, even if it’s on a similar topic. That book in the store might sell for £20, but that doesn’t mean your product should be priced the same.

You are not selling a bookstore book. You are selling a plan, a way for your clients to achieve the results they want. It is much more than the format in which it’s delivered. That result might be worth £69.95, or even more.

Charge more for a product that can be delivered in multiple formats. Think about the things that will be really attractive and irresistible to users, such as DVDs, manuals, templates, and audio products..

Focus on the aspects that make it easy for people to use what you’re offering.

One example might be fill-in-the-blanks templates. People will pay more for things that they feel are almost a plug-and-play system, where all they’ve got to do is they fill in the blanks in order to get their results.

Offer payment plans.

This is another helpful tip when establishing your pricing. You can offer payment plans through PayPal or a tool like 1ShoppingCart. People have the option to pay in installments over a set number of months. This can massively increase your sales, because users don’t feel that they’re making a big payment at one time.

As you think about pricing your product, always remember to set the price according to the value it will deliver. Follow this plan and you won’t go wrong.

Bernadette Doyle is a small business marketing expert. Get more tips and advice at http://www.clientmagnets.com

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