Pricing the e-product
Pricing an e-product is always challenging. (And I am personally grappling with this issue as I complete my own info product and attempt to price it.)
The dilemma in pricing the free bonuses or special reports that accompany a product is even more vexing if you value your integrity but also want to create an offer that competes in the marketplace.
In a sense, the claimed values for these add-ons as shown on the sales page don’t matter at all because in the end, these bonuses are free. Or as they spell it on the internet, f-r-#-e!
However, the numbers themselves can be really crazy. The sky’s the limit. And when you total the alleged value of all these free elements, it can easily exceed $2,000 or even $3,000, while the actual price of the lead product is a few hundred or even less!
It gets even more interesting when a specific bonus is already available elsewhere. I am seeing stated prices for some giveaways that are “valued” at twice the actual market value or more.
For instance, I see Think and Grow Rich by Napoleon Hill as a free bonus, valued at $29 or even higher.
But when I look at the price of this book on the Barnes & Noble or Amazon sites, I see new paperback copies priced under $15, and some editions cost substantially less than this.
It could be argued that the value is higher than $15 because the content is so useful. But I think it’s really that the seller simply picks numbers out of thin air.
This kind of thing irritates me as a consumer.
While the print books at the mortar-and-bricks bookstore are exceedingly uniform in their pricing—most every book of the same dimensions costs about the same regardless of content—there appears to be no consistency at all on the internet.
So on the issue of pricing, I’d like to call your attention to Mark Silver, whom I include on my “love letters for my gurus” web page. (Note: No longer available)
Mark has a unique exercise called “finding your right price.” In this structured process, several people develop a pricing consensus for a single product consistent with their individual gut-checks.
At first, it sounds kind of silly compared to more scientific approaches that include studying the competition and mathematical calculations.
But it works!
For more info on Mark’s methods, visit his website to sign up for his free newsletter and workbook. Or scroll down for info on Unveiling the Heart of Your Business, his 308-page ebook that offers a unique, heart-centered process to business development and details the right-price exercise.
Note: These are affiliate links and I may profit from your purchases. (Note: No longer an affiliate in 2020)
Originally posted 2-22-10