The title of this post isn’t supposed to relate to things that you buy. Never forget that. It relates to the products that you sell.
But always remember that everything you learn about online marketing is also being practised by other people and often those people are going to be better at marketing than you. Which means they’re probably using tricks you haven’t learnt yet.
It’s impossible to know everything and even the best can learn new things from others.
Today I want to look at how you can make more money.
A lot more money.
At the same time I want you to remember that other people are using this, so whenever you’re tempted to purchase a product look behind the marketing. Often you can learn far more by seeing how someone is marketing a big product than by actually buying the product itself.
Remember that and you’ll not only save yourself hundreds (or thousands) of dollars, but you’ll also improve your marketing ten-fold.
The concept of “the more it costs the better” is very simple…
The higher you price your product then the better people will think it is.
Psychologically it can be a hard concept to get your head around and in a lot of situations may consider a leap-of-faith from you the first time you try it out.
It’s logical to assume that the lower you price your product then the more units you’re going to shift and the more money you’re going to make.
There are two assumptions there:
- The more units you’re going to shift
- The more money you’re going to make
The first assumption is often correct.
But the second assumption is usually wrong.
Let’s look at a low price point product of $17 and a medium price point product of $197.
If you want to make $10,000 in sales then you need to sell 588 of the $17 product, but only 51 of the $197 product.
There are two things at play here. Assume this is an internet marketing product that’s going to help someone improve their business.
How many $17 internet marketing products have you bought that have actually seriously increased your business revenue?
How many of them contained very little useful information?
If you go through your hard drive I’m sure you’ll find that while the odd one or two have some excellent content, the majority of them have actually not provided you with anything useful or that couldn’t be found for free with a little bit of Googling.
Now look at the product you’ve bought that are $197. I bet that these generally contain way better content. Of course there’ll be the odd one that is poor, that’s always the way, but generally they contain far more useful information.
And that’s what you’d expect. After all, it is ten times the price of the first product.
Which is exactly the point.
It is in fact far easier to sell a higher priced product than a lower priced product. Lower priced products already have something against them… the fact that they’re low priced.
The purchase mindset is more along the lines of…
“Well it’s cheap, it may have something good in it but if not… it’s not very expensive”
This is a bad mindset for your customers to have.
Already they’re assuming that you’re product isn’t going to have anything of high quality in it. Already they’re making your prove to them that there’s something good inside.
And let’s be honest… if you’re selling a product fgor $17 then you unless you’re going to be able to shift them in the tens of thousands you don’t want to spend a huge amount of time making them because you’re not going to be making much money.
You’re selling on curiosity and low price-point.
But it’s completely the opposite for the higher priced products.
Here you’re selling on the benefits that your customer can get from your product. They’re buying because they believe your product can help them achieve their goals and they want to succeed.
And that gives you the other huge benefit of selling at higher price points…
The higher the price point the more invested your customers and… the more work they’ll put into achieve.
Which means you get less support tickets, less people expecting something to make them money without putting in any effort and more great testimonials when it does work.
Because the customers who buy at the higher price point already have an understanding that they have to put in time and effort to succeed. So they do!
The bottom line is that it is easier to make more profits with higher priced point products and you get more customers succeeding and leaving you excellent testimonials because they’re prepared to work.
In our testing we’ve discovered that anything less than $97 is only worth doing if you’re trying to separate the buyers from the non-buyers on your list.
You can use those lower priced products to warm them up, give them great value and learn who is going to be prepared to take their wallets out.
This should be done quickly after someone has joined your mailing list.
Of course, you should still provide those people who aren’t prepared to pay with excellent content and information. They’re also able to spread the word about your business.
But ultimately you are running a… business.
Which means you have to focus on helping the people who are prepared to pay you for your time.
If you have never had a high price point product then I urge you to take the leap of faith. It should be at least $97 but if you can push it to $197 or even $297.
Do it once and I promise you’ll never look back.