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Old August 11, 2003, 04:26 PM
Michael Ross (Aust, Qld)
 
Posts: n/a
Default According to the extensive price testing done by

Ben Suarez and reveal in 7 Steps to Freedom...

The total amount of money to be made from a project is pretty well set. Changing the price does not change the total money made... only the number of customers who will buy.

For instance: Sell a widget for $10 and you might get 1,000 sales - a total of $10,000. Sell that widget for $20 and you will only get 500 sales - a total of $10,000. Sell that widget for $5 and you will get 2,000 sales - a total of $10,000.

That being the case, you need to then weigh in your marketing costs to get each customer and wat you figure to be each customer's life time value. If you can afford to get more customers at the cheaper sale price, then it might pay you to do so because you will have more customers to sell stuff to later on.

It really depends on how many customers you want to deal with. Pick that. How much you want to make. Divide the two together to get your sale price.

Michael Ross