Hi Don,

I spoke with a person once who sold high-end information products. He told me that he wound up doing the reverse. He went from selling $900 products to selling $100 products. When I asked why, his initial one-word answer was:

RETURNS.

This individual, unfortunately, spent money as quickly as he made it. As a result, when a return was requested (up to 90 days later), the profits were long since spent. On short notice, he figured it would be much easier to come up with $100 than it would $900. I guess he had more than just a few returns.

In a few cases, he told me the customer requested a refund from Visa or Mastercard and was given it without too many questions being asked. And so, after taking a few too many hits, he revised his pricing schedule.

It could be that his products weren't too good to begin with. I don't know because I've never purchased anything from him.

Last week, I spoke with a well-known Internet Marketer who sells digital products exclusively (out of respect for privacy, I'm omitting names). His products begin at $97 and go up from there.

He told me that his digital products have a much higher return rate than his older paper products did. However, when he considered the fulfillment costs of the paper products, he said the convenience of have a totally automated business outweighed the negatives of the higher return rate.

With physical products, most would-be business people probably don't have the cash reserves or possibly the credit necessary to inventory high-priced products. The costs of getting into business to begin with can be prohibitive.

That's just a few thoughts on the subject. Of course, you're still right - it still easier (over the long-haul) to sell 10 $1,000 products than it is to sell 1,000 $10 products. There are reason's, however, (legitimate or not) that keep people from doing so.

Jim G.




Jimmy Krug's - Simple Publications Forum