Ebook pricing advice please

Hi all

I need some feedback about initial pricing for a product. I know I can test, but I want to get a feel for a first price.

It’s a database in an ebook. A fully keyword searchable collection of just over 3000 URLs about pet ferrets. Don’t laugh – I gather they’re the third favourite pet in the US after dogs and cats, so there’s millions of ‘em!

Ferret owners are a strange lot – if you are an owner or know someone who is, you’ll know exactly what I mean. They tend to be passionate about their pets – haven’t found an apathetic ferret owner yet – and I believe they’ll pay well for good information.

Not that it’s necessarily relevant to prospects, it’s the result of about 5 years collecting and 6 months compiling – a hell of a lot of work!

So, any ideas please? I have $24.95 in my mind.

Thanks

Philip

Hi Philip,

My opinion on pricing has gradually changed over time....

Two common business strategies are:

* High price, low volume
* Low price, high volume

I think you should decide which type of business you would prefer:

* A business where people pay MORE, but you have fewer customers to deal with (and they end up getting better service), or...

* A business where people pay less, but you have more customers to deal with, who may end up getting worse service (since you're spreading yourself more thinly)....

I like the first option better. I'd prefer to charge more, but offer more in return for it (to ensure I have happy customers).

I think the high price, low volume type of business is probably easier for the "small guy or gal" to succeed in as well. However, it depends on your product.... I think the more unique your product is - as long as that uniqueness is beneficial to the customer in some way - the easier it would be to succeed this way. If there are many others selling something similar to what you have, but they're selling it cheaper, then it's probably harder to survive....

If I were you, I would set a "high" price, but then also make sure that when people buy it, they feel that they are getting value. Add more products or extra service to what you offer to ensure that....

Well, there's my two cents.... I'm interested in knowing what others think about this topic too. (Feel free to disagree with me.)

- Dien Rice

P.S. Like many others here, I've learned from Bill Myers. He seems to be a big believer in the "high price, low volume" type of model...

One thing he seems to do is that the higher the price is which he charges for a product, the better the service is which the customer gets as part of the "package".

For example, he's selling some expensive software nowadays - Membergate. It was $30,000 (I'm not sure if it's still the same price). But for their money, in addition to the software, a company also got installation, and training for their staff on how to use it, plus one year of free support (if I remember right).

So, while companies did pay quite a price for the software, in reality they also got a lot in return. These companies felt that the software plus these extra additions was well worth the $30,000 they paid. The goal is to have happy customers, and make a profit too.

Hi Dien

Thanks for the comments. As for competition, I don't believe there is any. In five years of searching I think we would have found it! The closest we found was a web site with about 100 URL's.

Thanks

Philip

> Hi Philip,

> My opinion on pricing has gradually changed
> over time....

> Two common business strategies are:

> * High price, low volume
> * Low price, high volume

> I think you should decide which type of
> business you would prefer:

> * A business where people pay MORE, but you
> have fewer customers to deal with (and they
> end up getting better service), or...

> * A business where people pay less, but you
> have more customers to deal with, who may
> end up getting worse service (since you're
> spreading yourself more thinly)....

> I like the first option better. I'd prefer
> to charge more, but offer more in return for
> it (to ensure I have happy customers).

> I think the high price, low volume type of
> business is probably easier for the
> "small guy or gal" to succeed in
> as well. However, it depends on your
> product.... I think the more unique your
> product is - as long as that uniqueness is
> beneficial to the customer in some way - the
> easier it would be to succeed this way. If
> there are many others selling something
> similar to what you have, but they're
> selling it cheaper, then it's probably
> harder to survive....

> If I were you, I would set a
> "high" price, but then also make
> sure that when people buy it, they feel that
> they are getting value. Add more products or
> extra service to what you offer to ensure
> that....

> Well, there's my two cents.... I'm
> interested in knowing what others think
> about this topic too. (Feel free to disagree
> with me.)

> - Dien Rice

> P.S. Like many others here, I've learned
> from Bill Myers. He seems to be a big
> believer in the "high price, low
> volume" type of model...

> One thing he seems to do is that the higher
> the price is which he charges for a product,
> the better the service is which the customer
> gets as part of the "package".

> For example, he's selling some expensive
> software nowadays - Membergate. It was
> $30,000 (I'm not sure if it's still the same
> price). But for their money, in addition to
> the software, a company also got
> installation, and training for their staff
> on how to use it, plus one year of free
> support (if I remember right).

> So, while companies did pay quite a price
> for the software, in reality they also got a
> lot in return. These companies felt that the
> software plus these extra additions was well
> worth the $30,000 they paid. The goal is to
> have happy customers, and make a profit too.

> Hi Philip,

> If I were you, I would set a
> "high" price, but then also make
> sure that when people buy it, they feel that
> they are getting value. Add more products or
> extra service to what you offer to ensure
> that....

The "more" that people get is not necessarily more products or extra service. It can be an aura of exclusivity and credentials that convince the buyer that they are getting something better than what they get with lower-priced products and less qualified providers.

For instance, for years Jay Abraham ran ads touting himself as the world's highest-price marketing consultant. The cheapest product he sold was about $300. He made himself sound so wise, you wanted something from him, so you'd pay $300. In fact, the contents of this $300 book were no more valuable than a $13.00 book.

Exclusivity and credentials can get people to spend more.

Marcia Yudkin


Big profits from small, expensive special reports... how to's here

Hi Marcia,

> The "more" that people get is not
> necessarily more products or extra service.
> It can be an aura of exclusivity and
> credentials that convince the buyer that
> they are getting something better than what
> they get with lower-priced products and less
> qualified providers.

> For instance, for years Jay Abraham ran ads
> touting himself as the world's highest-price
> marketing consultant. The cheapest product
> he sold was about $300. He made himself
> sound so wise, you wanted something from
> him, so you'd pay $300. In fact, the
> contents of this $300 book were no more
> valuable than a $13.00 book.

> Exclusivity and credentials can get people
> to spend more.

Thanks, Marcia, this is an excellent point!

I think in this case, people are often paying for perceived quality.... They expect that they'll get the "Rolls Royce" of info, instead of the "Daewoo"!

And it's true, you often get what you pay for.... But not always. There is a wide range of both price and quality....

Thanks for those insights. :)

- Dien

Thanks for the thoughts everyone :-)
> Hi all

> I need some feedback about initial pricing
> for a product. I know I can test, but I want
> to get a feel for a first price.

> It’s a database in an ebook. A fully keyword
> searchable collection of just over 3000 URLs
> about pet ferrets. Don’t laugh – I gather
> they’re the third favourite pet in the US
> after dogs and cats, so there’s millions of
> ‘em!

> Ferret owners are a strange lot – if you are
> an owner or know someone who is, you’ll know
> exactly what I mean. They tend to be
> passionate about their pets – haven’t found
> an apathetic ferret owner yet – and I
> believe they’ll pay well for good
> information.

> Not that it’s necessarily relevant to
> prospects, it’s the result of about 5 years
> collecting and 6 months compiling – a hell
> of a lot of work!

> So, any ideas please? I have $24.95 in my
> mind.

> Thanks

> Philip

> Hi Marcia,

> Thanks, Marcia, this is an excellent point!

> I think in this case, people are often
> paying for perceived quality.... They expect
> that they'll get the "Rolls Royce"
> of info, instead of the "Daewoo"!

> And it's true, you often get what you pay
> for.... But not always. There is a wide
> range of both price and quality....

> Thanks for those insights. :)

> - Dien

Hi Group,
Low price/
hi-vol in order to build the list. What's the
thinking on this? Is there a valid marketing
generality?
Capt Charley