James Schramko here. One of the questions I get asked all the time is, how do I price my product or service, from new product or service creators. Even experienced people who’ve been in the market for a long time make pricing mistakes. And it’s pretty easy to do because it’s a complicated subject.
So what I did is, I got an episode 747 together on SuperFastBusiness. And I brought in Christo Hall who’s got a marketing business. And him and I have a peer-to-peer conversation about all the different things that we think about when it comes to pricing. How do you find out what your price might be in the market? What position do you want to take in the market? I’m not sure if you’re aware of this, but if you charge too little, some people won’t buy from you simply because they just don’t think you’re going to be any good.
We talk about Cialdini’s experiments, we talk about some of the other price testing and price points that seemed to go quite well. We talk about how sometimes you’re not going to have enough data to actually get a valid test. We talk about what things would be acceptable or would not be acceptable when you aren’t running tests for pricing. And Christo’s got a lot of experience with different types of businesses. So when we get together, it was really fun to have this conversation, and I think you’ll get some really good takeaways.
You’ll probably listen to the episode, and then come away and think, well, maybe your own pricing needs some adjustment – maybe a little more, maybe a little less. But in my experience, a lot of people tend to underprice themselves, or they’re not able to express the value properly that helps them charge more. I’ve got products that range from $10 a month to $5,000 a month. And some of the things involved in the product are very similar, but there’s a very different way that you position them, what you deliver. Then of course there’s other things you can do to bolster your price and to very low refund rates. And make sure that your customers are getting great results and are very happy.
So check out Episode 747 at SuperFastBusiness wherever you listen to podcasts, and have a listen-in and see if you’re going to make any price changes as a result of that. And if you just happen to be starting out, and you’ve got a new product or service that you’re trying to price, I know this episode’s gonna be helpful for you. There’s a full transcription and a quick cheat sheet available as an opt-in at SuperFastBusiness.com where you find Episode 747.
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