Entrepreneur Tips and Tricks – Pricing
Oh Man! Alex Mehr of MentorBox fame (with Tai Lopez) stopped by our mastermind in April and dropped some knowledge about how to price your products.
Pricing is one of the hardest things to do in entrepreneurship because sometimes when you are trying to make money online there are no other products like your course to compare to.
And pricing mistakes can break an online business or leave an entrepreneur feeling defeated and wanting to give up.
The short version of what Alex presented is as follows. For products where there is no direct comparison (like your own courses or services work) you should use one of the following prices:
I intentionally left spaces so you can see that the pattern of pricing repeats even as you go up 10x in cost.
This is because as Alex explained there are certain pricing gaps needed for your customers to feel the next level of expense. Spending your time testing $34.99 and $39.99 is not worth while. You need to ask yourself is this $19.99 or $49.99 product and then move on.
Now this doesn’t necessarily work for products where you are competing with identical substitutions like 2 fidget spinners, but even then if you can price at one of these magic prices, you will do better.
In my Amazon FBA business I have seen a number of products priced at $21.99 and unless those 2 are make or break for you, you should see a better overall conversion pricing at $19.99.
So in summary – test your online courses, digital products and services at one of the magic price points above and see if you can get more conversions.
Of course this is simplified but if you are looking to go a lot deeper, I found this amazing resource with TONS of tips and tricks for entrepreneurs to use to price their products and services:
“Whether you’re marketing a new product, selling items on eBay, or negotiating a deal on your house, you’ll learn 42 tricks to make your price seem lower ==>https://www.nickkolenda.com/psychological-pricing-strategies/