| Internet Business - Look To Raise Your Prices, Not Lower It |
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Here's a little Internet business anecdote that I think you can take with you and really profit from it: I've found that by increasing prices by $10, conversions for the sales of my products don't really change much...
Here's a little Internet business anecdote that I think you can take with you and really profit from it: I've found that by increasing prices by $10, conversions for the sales of my products don't really change much. In fact, conversions on some days get better! This is because of the perceived value of your product when you attach a higher price to it. I recently changed the price of one of my products from $27 to $37. Conversion rates haven't changed much, but my profits have gone up by 37 % per sale. Neat, right? I've also stopped selling low-cost products like $7 products or anything less than $10 to my mailing list. The reason is this: I don't want to 'train' my list to think in terms of low-cost, savings, discounts and the like. And my recent affiliate promotions of higher-cost products have converted much better. Where I would once struggle to sell anything above $40 to my list, they now convert easily for me! So what's the Internet marketing lesson to take here? If you're facing lower sales, raise your prices! If you lower your prices, you are basically entering a price war and that's no place you'd want to be in. Offer more value than your competition and you are basically granted the 'right' to raise your prices and get away with it (while having a thicker wallet in the process). If you offer more value without increasing your costs of producing your products, and you charge more, you are always earning more from every sale you make. So if in doubt, don't lower your prices, raise it! |
