Pricing with Regard to Competition – NOT
So How do you price your products or services?
When you’re looking at pricing, I bet the very first thing you’re likely to do is say, hey, so what is everyone else charging for similar products? And you may go from there.
Right?
Now there’s nothing wrong with doing this at all, but there’s more to think about, and a lot more questions to ask than a simple can I beat what this guy is charging for his service?
Your price doesn’t have to beat everyone else’s out there for you to get sales. This is something that I learned a long time ago, and you may remember me talking about actually increasing my sales by putting the price of the monthly membership up, and offering an option that was actually ten times more money up front, which increased profits even further.
You’ll go broke by competing on Prices.
You really need to be aware of what other people are charging for their products, but that doesn’t by any means signal that you have to go out there and beat them. Instead beat them by strategy not by pricing.
Imagine you’ve just started up an ad tracking and autoresponder script site that’s so detailed, and so professional that it smacks the pants off the competition.
But see the other sites offering the same service are hanging around at the ten dollar per month mark. Does this mean that you have to go and beat them and have a lower price for anyone to look at you? Nope, not at all. What you have on your hands is a premium product, and you shouldn’t be worried to sell it at a premium price.
If you start slashing prices from that 10 dollar mark, soon someday someone will out price you again… and this keeps happening until all of you are out of business.
So here are few rules for you to follow…
Rule 1: Premium Products Sell at Premium Prices
So, here’s rule number one. If you have a great premium product, don’t be afraid to bump the price up. You do not by any means have to beat a competitor’s price to be competitive, in fact, by putting your price up, it’s quite possible that you’ll outsell your cheaper competition.
Why? Because a higher price screams quality. Don’t, for one moment, believe you have to have the best price to make any sales. That’s just not true, you just have to have the best sales system, and of course a premium product if you really ever want anyone to buy from you again.
Rule 2: Wowing Through Price Is a Bad Move
The fact is, if your price is too low, people look at you and wonder why the heck you’re charging that tiny amount. They’re saying, “Wow, look at how little that costs. There can’t be that much to it.”
Rule No 3: Don’t Be Afraid
Too many people are afraid to take the leap and price their products as they believe they’re worth. Too many people look at competition and think they have to cost less otherwise no one is going to buy their stuff, or they’ll make less money out of it.
If you notice my service as an example. I AM NOT AFRAID OF CHARGING HIGH. I am not asking $100 or may be $250 an hour, not even $500. Do you think you can put price on the experience and knowledge I gained while I was building business? Heck No…
If you are afraid of charging High… Then first charge high and Add more quality to your product/Service. I have a strong belief that I can Give more than I am charging for. and I do.
Play Only if you can Expect to Win
Everyone reading this can succeed online with their business! I can say that with 100% confidence. There is room for everyone online. The Internet is big beyond your dreams and is getting bigger every moment.
So expect to Win. Expect to Succeed. Why? Because you will. There is nothing standing in your way… Only you can stop yourself to succeed. One of the visitor on my blog left this amazing comment…
Pogo who was made famous for his words, right in the midst of VietNam war days:
– I found the enemy…
– The enemy is us.
You say, “Well how can you say that. Look at my financial situation.” Or, “I don’t have the education so I’ll never be able to compete.” Or, “I don’t have the time!”
Well I’m here to tell you none of those hold water. They are temporary problems. They can be overcome. And giving up is a permanent solution to those temporary problems.
If you commit yourself 100%, burn your bridges, and put all of your energy to task, YOU WILL SUCCEED! There’s no question…
There are a few things you need to get through your head.
- You can’t put a time limit on it.
- You have to expect to fail before you succeed. So fail faster to succeed.
- You have to create a Burning Desire.
- You must walk before your run… Get educated.
- You must have complete focus on your goal.
- You need a defined purpose.
- You have to find YOUR opportunity.
- You have to employ patience.
- You have enjoy what you are doing and believe in it…
- And You Must Learn From Others…
Your commitment to Online Success is the key to finding it. Commit to enjoying the journey. Someday in hindsight you will realize the journey itself produced your life’s dreams. The ups and downs are just brush strokes on your life’s work.
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