Share Button

Thursday, December 6, 2012

Marketing 101 - Price Part 1



Before I deal with price, let’s come to an agreement about what true value is. What does the customer feel your product is worth? If the price is less than value, they will see it as a win and keep buying your product. If the value is less than the price, the customer is unlikely to ever purchase your product again.

For ebooks you will probably use something called “value-based” pricing.  You cannot price an individual novel based on how much work you put into it. If you count up the number of hours you’ve spent toiling over one specific work and multiple that by an hourly wage…

Well you see the problem. No one is going to pay $1000 for a book.

Instead, focus on what the customer will feel the product is worth. There are so many free ebooks out there that many people will pick it up just for kicks. However, if it’s free, you set an expectation that it is disposable.  The expectation is that nothing very good is free. Because of something called “psychological pricing” you may get higher sales if you actually raise your price.

My mother was an artist before she became too sick to paint. For quite some time she had a great deal of difficulty selling her artwork. Finally, she asked the owner of a gallery why she thought the paintings weren’t selling.  Her advice? You guessed it, raise your price. She added a zero onto the price tag and suddenly her paints were selling quickly. Logical? Not at all. But it works.

BOOKS BY M JOSEPH MURPHY:


Amazon: M Joseph Murphy on Amazon: Paperback and ebook
Smashwords: M Joseph Murphy Author Page on Smashwords
Kobo: M Joseph Murphy Books on Kobo

1 comment:

Share Button