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need pricing help please

Postby lovesangel » Wed Jul 29, 2009 12:21 pm

Hello All!

I would love your help in pricing. YIKES! I know it's a touchy subject, but I've got it started so don't run away yet, my feelings won't be hurt.

I have some products in different formats and I don't really know how to set the prices from one to the other. For instance, one book I wrote is an e-book, audio MP3 and 2-CD set, and also a paperback. Should the prices all be the same? Usually e-products are less than hardcopy products. But I am also planning on selling the e-products through Clickbank, which takes 60%.

I would love suggestions if you have them. Any and all the prices can be changed as nothing is set in stone at this point. I have tentative prices set for the paperbacks.

Here's how I have my new front page set up. http://loves-angel.com/spare/fun-test-page. I'm going to replace my index page with this page, so right now it's not available to the public.

Thank you!
Nancy

$14.95 Paperback: Book ABC (costs me $7 to print from Lulu.com)
? Ebook: Book ABC
? 2-CD audio: Book ABC

$29.95 Paperback: Book XYZ (costs me $15 to print from Lulu.com)
? Ebook: Book XYZ

$14.95 Audio CD: Audio Meditation 2track-30 min each
? MP3: Audio Meditation 2track-30 min each
Last edited by lovesangel on Wed Jul 29, 2009 12:40 pm, edited 2 times in total.
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Re: need pricing help please

Postby lovesangel » Wed Jul 29, 2009 12:36 pm

Oh, I forgot to mention that I want to group the e-products into a "package" and offer the complete deal at a lower price. I'm thinking this might affect the initial prices I set for the individual items?

Package #1

Ebook ABC
Ebook XYZ
MP3 meditation
MP3 audio Book ABC

Nancy
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Re: need pricing help please

Postby jvprosperity » Wed Jul 29, 2009 3:52 pm

here's my opinion that was derived from the person I heard it from (Russell Brunson)

I view internet Marketing products as a Ladder.

At the bottom of the Ladder is ebooks and at the top is One on One Coaching. so the ladder would look like this starting from the Top ($$$) to Bottom($)

One-to-One Coaching ($$$$$$)
Workshops ($$$$$)
Teleseminars ($$$$)
Video($$$)
Audio ($$)
ebooks ($)

I agree with this methodology mainly because of the convenience factor and value from the customers point of view.
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Re: need pricing help please

Postby lovesangel » Fri Jul 31, 2009 9:46 am

Thanks JVprosperity,

Your marketing ladder provided some clarity and sparked some ideas. Would you say that workshops and courses is the same thing, in the price ladder scheme of things?

Nancy
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Re: need pricing help please

Postby jvprosperity » Sat Aug 01, 2009 12:17 pm

I'm using the "workshop" term in the sense of LIVE Workshops where paid customers have to attend to receive information. Good Question.
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Re: need pricing help please

Postby lovesangel » Sat Aug 01, 2009 12:42 pm

Where would courses fall into this pricing mix? Either/and online, downloadable, or the hardcopy kind you can order and hold in your hands?
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Re: need pricing help please

Postby ideasuniversity » Sat Aug 01, 2009 6:22 pm

jvprosperity wrote:here's my opinion that was derived from the person I heard it from (Russell Brunson)

I view internet Marketing products as a Ladder.

At the bottom of the Ladder is ebooks and at the top is One on One Coaching. so the ladder would look like this starting from the Top ($$$) to Bottom($)

One-to-One Coaching ($$$$$$)
Workshops ($$$$$)
Teleseminars ($$$$)
Video($$$)
Audio ($$)
ebooks ($)

I agree with this methodology mainly because of the convenience factor and value from the customers point of view.

I also agree with this methodology, but sometimes some ebooks sell more in 2 digits. My 26 pages report sell for $9.77
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Re: need pricing help please

Postby jvprosperity » Tue Aug 04, 2009 1:44 pm

lovesangel wrote:Where would courses fall into this pricing mix? Either/and online, downloadable, or the hardcopy kind you can order and hold in your hands?


Nancy, could you define "courses" with as much detail as you can? I ask because every person reading this post has a different "picture" in their minds of what a "course" is.

For me a "Course" can fit in any of the delivery methods I disclosed in the Pricing Ladder. That is.. it can be an ebook, autoresponder sequence, teleseminar or webinar (recorded or live over the phone/internet), a workshop (live-in-person-face-to-face) or a one-on-one session.

So let us know how you are defining "courses". thanks
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Re: need pricing help please

Postby jvprosperity » Tue Aug 04, 2009 1:53 pm

One more thing...

On the topic of delivering your product (Downloadable product vs. Shipped Physical Product) I'd like to hear other people chime in on this one.

There are Pro's and Con's for either option but there is no reason why you can't offer both.

I've seen examples where both options are provided and most people will opt for the downladable product because they can get it immediatley and save money on shipping.

While some people don't want to bother printing the ebook and would rather read a physical copy. It's all about providing Choice.

there's no right or wrong. Listen to the customer and if they say they refer a physical product rather than an electronic version then offer them the physical option and as a bonus give them the download version so they can start reading the product while the physical one is being mailed.

Note: if you go the physical route make sure that the packaging and shipping of the product is automatic and does not require you to manually have to do it. There are On-demand companies that will do this for you.

Example:
a client of mine requires to send out a DVD with free information about a 3 hour investing seminar where he gives away free strategies. He originally thought he would have to order a 1000 DVDs and take care of the shipping and handling. Except when he met me I let him know of kunaki.com and now he doesn't lift a finger 'cos for about $5/DVD everything from taking the order to, packaging and shipping is taken care of for him. He charges $10 for the CD so he pockets $5/DVD.
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Re: need pricing help please

Postby lovesangel » Fri Aug 07, 2009 9:37 am

Hi Andy,

You asked me to define "courses" in regards to my application of the word. My intention is to put a program together to help men (and women) gain a deeper sense of self-awareness in order to attract, develop and build healthier and more loving relationships.

My idea is to put together all the product material I have developed thus far into a complete package that will include all the information an individual needs to learn how to create better relationships with himself and others - women especially. The package will include: 2 books, 1 audio book, a course book/workbook, 1 audio meditation, several bonus books.

I could fill out this package even more by:
a) including a certain number of phone mentoring sessions
b) offering in-person one-to-one mentoring

The course package can be either all downloadable and/or hardcopy products that are shipped to the client.

I was a bit hesitant about the hardcopy end of things until you mentioned a company that does all the packaging and shipping. I would really like to look into that option as I do not want to be a production & shipping business. I will if I have to but I don't really want to. To get my CDs produced at this point I am not able to order 100 copies of both the double CD book and the meditation.

Does this clarify my idea of "courses" somewhat? Let me know if you would like further explanation.

Thanks,
Nancy
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Re: need pricing help please

Postby lovesangel » Mon Aug 10, 2009 11:32 am

Andy,

I looked up Kunaki.com and from what I can tell, it looks like they only do CDs and DVDs. My course package includes several books as well as CDs. Although, their pricing is less than Lulu.com for the CDs.

Do you know of a company that would produce, package and ship the books and CDs? It seems as though this is still something I might need to do from home; gather the components and package and ship on my own. I really would prefer to do it a different way.

Nancy
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Re: need pricing help please

Postby jvprosperity » Mon Aug 10, 2009 1:38 pm

hmmm... great question about the packaging of media in different formats.

Does anyone on the forum know of such a service - I bet there are on-demand services for this?

just had a thought.. and you may have to inquire with kunaki.. Ask them if yous can include electronic versions of the print workbooks on the CD? If you can that would be great otherwise I would just deliver them via you website. How?

Well you get to design the CD cover anyway you like. So on the CD cover you can include a URL to your website that has the PDF workbooks for them to get when the CD is received.

This should also keep you shipping costs low as you won't have the added weight of the workbooks.
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Re: need pricing help please

Postby David Hurley » Mon Aug 10, 2009 7:18 pm

I agree that allowing customers to choose digital or physical product delivery is a good idea.

If you are handling large volumes of orders then outsourcing the process is an excellent idea.

Handling physical orders yourself is a demanding occupation, as I know from experience, but on the other hand, if you are doing it on a small scale it also gives you some good opportunities to personalize your service with hand written compliment notes and so forth.

Also, you can learn a lot from your customers if you deal with them through every part of the sales process.

Once sales volume picks up, outsource the operation - you'll probably save money as well as time.

DH
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Re: need pricing help please

Postby IncreaseSalesCoach » Wed Aug 19, 2009 12:42 am

I think you could be selling yourself short.

Plus you may be focused on the wrong things when it comes to pricing your products.

What will your buyers be able to do or get as a result of your product?

How much would that be worth to them?

Buyers will gladly pay over $100 for a one page report because it tells them exactly what to do to overcome a specific difficult to solve problem. Even when that information can be found free elsewhere.

I know it's hard not to compare your eBook to a physical book. Yet, that may not be a fair comparison.

Another thing to consider is the perceived value when a product that sounds great comes with a very low price. Some potential buyers will doubt the value of your product because the price seems way too low for the result it promises.

There's a quick and easy way for you to discover the right price though. Open a Google Adwords account ($5) and then set-up a multi-variant test for different price points. If you have a decent amount of traffic you'll quickly discover the best price.
Cheryl A. Clausen

Gain an unfair advantage when highly qualified prospects contact you -- http://IncreaseSalesCoach.com/blog
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Re: need pricing help please

Postby lovesangel » Wed Aug 19, 2009 10:26 am

Hi Cheryl and all people in this forum,

I totally agree with your post to my sales pricing query. Your suggestions are great and I downloaded your book and David's book as recommended in another post thread. I'm writing this reply here rather than as a private message because I believe there are others like me out there who are coming from the same place and perhaps there will be some answers that will help us all bridge the gap. I know there's got to be a better way for all of us internet business people whether we're artists or marketers. We need each other and we need to find a healthy generative way to work together for the benefit of each of us as individuals and for the forward movement of the whole.

The problem is that I need help (the action oriented kind) and I don't have any so I have to do it all by myself and I 1) don't want to 2) don't have the time to learn how to be a salesperson/marketer in a professional sense of the meaning 3) have no income so can't hire out in the traditional way.

I'm not complaining, just stating a fact that probably speaks for a lot of artists, writers and healers who are wearing all the hats because we don't know how else to do it, and it' not getting us where we need to go. It's not even that we don't know how to do it most of the time because forums like this provide great information from people who are so willing to help by offering excellent advice and there is a LOT of free information available from so many sources. It comes down to a time and money factor and a way of working smarter, not longer hours.

I'm just putting this out there because I know there are some good minds on this forum and perhaps we can come up with some solutions that will help all of us increase our wealth abundance. Generally speaking, artists (and I'm referring to the collective group of individuals who live in a very right brain state of creative existence for the majority of their lives) have little interest and no time to wear the marketing/sales/business structure hats; and marketers/sales people are not usually the ones who paint whole shows of beautiful mystical landscapes or have developed their natural intuitive healing abilities. That doesn't mean we all can't do both or that many people aren't doing both. What I'm saying is that rarely are both ends of the spectrum successful without the help of the other.

My sense is that there are a lot of excellent unknown artists, writers, musicians, healers out there who aren't making a living from their heart-inspired talents who need the help of marketers, biz professionals and salespeople and can't afford it with the traditional use of money exchange. And I bet there are a lot of marketers/salespeople out there who would love the challenge of helping an artists, etc. make a successful business from their passions and increase their own profits doing it. So what is the creative answer for all of us?

For example, right now I am trying to finish pulling the products for my package together. I've just finished editing both hardcopies of my 2 books. I have a third one, the lesson book/workbook, to edit, then a workbook for one of the other books to create and some bonus items to put together. Takes time and whille I'm doing it there is no money coming in. Plus I've been trying to redesign the front page of my website http://loves-angel.com/spare/fun-test-page. A web coder is helping me with that but I still have to do the design and come up with all the salescopy, images, audio, etc. Then I have to figure out how to print, ship and deliver a hardcopy version of my package which includes print and audio media. The shipping for the test copies of my print books and audio media is ridiculously expensive from Lulu.com and they don't do double CD sets, so that means I either have to record my own, which apparently might not work on everyone's CD player, or I have to purchase a large number from a manufacturer. I'm very optimistic, devoted but I may not get it all done until 2040.

Cheryl, you are very correct in the 5 problems with selling products. I know I'm not getting the right message to the right people. I've known this for quite some time and I keep clarifying my message and my target audience. Because of the no income thing I've had to seek out where I can advertise for free. There are lots of places and ways to advertise for free and David really knows his stuff, but I'm still not reaching the people who are looking for what I have to offer. And it's not just about the message and the method, it's about the website and all that comes after a person lands on my site. And I'm not into the mindset of having to persuade someone to buy something. They either want it or they don't. I know what I want and what I don't and no amount of "selling" me is going to make me change my mind. So I believe this of others, although it may not be true.

And like most artists I still have no idea how to price my specific products/services, even though Andy and others have made some very useful and informative suggestions. And yes, I am selling myself short because I need to sit down with someone who knows how to price to give me some tangible suggestions. Because as all artists know, pricing is not about adding time + materials to = price. It's what I as an experienced professional with life experience, knowledge, wisdom, intuition, developed skills and all the rest, bring into my work. It's not even about the value my work brings another because a painting can do nothing for one individual and inspire the greatest healing and enlightenment in another. How does one price that? All I realy want to do is help people who want a happier life work through their issues because this is what I'm best at. Men especially find it very easy to open up to me, which dramatically helps them heal old wounds and move forward in life. And I want to do my art and write my books. That's all.

On a personal, slightly divergent note, I'm seriously considering taking a certified training program through the Institute of HeartMath in California which will teach me to teach people to reach a state of heart coherence. Although I would still be working one-on-one with clients it has different components that are directed to specific groups of people, like business people, athletics for sports performance, health, stress management, etc. The program comes with workbooks that the clients use and a structure for me. 4 one hour phone consultations for $495. I think this would be a perfect adjunct to my business but I still have to market to the right clients and that is my downfall. Plus I have to take time to find grants for the $3000 training fee because, as I mentioned before, I don't make money yet.

But the point is that I'm drawn to following my passions in ways I am particularly suited to helping others. It's like being a musician who just wants to play music, but instead I have to learn how to make the instrument, then I have to make the instrument before I can play. Plus while I'm learning to make the instrument and actually making the instrument I have to keep up my practicing somehow. When in truth there are those who love to make the instrument for people like me who just want to enrich people's lives with the music, or with a painting or with a story.

As many of you well know, we are quickly moving into a time where entrepreneurship is the name of the game for everyone. We will have more successes and a stronger economy when we all join together rather than each individual having to keep reinventing the wheel in a physical sense. I totally believe that I, (and everyone) can have a successful internet business, one where I do what I'm best at and I hire out the jobs that I don't want to do.

In the meantime I will keep putting one foot in front of the other because it's all I know how to do at the moment.

I realize this post might trigger some people in ways that are not necessarily positive, but please read it for the higher values and concerns that I am trying to get across and find answers to, not just for myself but other who are intelligent, talented, hardworkers and are struggling with the same concerns that I am.

Thanks,
Nancy
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