Guest Post by Paul Cooley
I got into a discussion with a customer of mine today at my coffee shop. He started talking about how people don’t appreciate things that are given to them as much as they appreciate things they pay for. This got me to thinking about different marketing techniques that I teach, as well as many others teach and brings up a question that I would love to get your input on…
Which is better in marketing, charging premium prices or rock bottom prices for your products/services? There are different rules of thought about these concepts which need to be addressed.
I understand both sides of the coin and have experienced them as well. So which is better? Which way should you market your product?
The rock bottom concept is to charge a very affordable price to get more people to buy from you. How many eBooks do we see for $7.00, $17.00 or even $27.00? I know I have seen a lot!
But what if you saw an eBook that was selling for $97.00? What would be your first thought? What would you expect from this book that you may not expect from the others at a lesser price? For me, I would expect more value from a $97 dollar eBook than I would from a $7 dollar product.
I look at my folder that has all the eBooks I have downloaded and it seems that the ones that cost me more are the ones I printed out and read through thoroughly, while many of the eBooks I have gotten for free or a lesser price, either have not read or never finished. Even though some of the lesser priced books really do have good content! It’s all about how perceived value and how your customers perceive the value of what you are selling is huge!
I must admit, when I see something like an eBook or a membership for $7, my mind immediately goes to a p ...