How to Find Your Price
Talk With The Video
Summary
- I always recommend testing and trying different prices to see what happens.
- Pricing bands exist; for example, $27 isn't very different from $29, but $70 feels like another range compared to $65.
- Buyers who say yes to $50 might also say yes to $55 or $59.
- If you notice a drop in conversions, you can adjust by removing one small feature or lowering the price slightly.
- I always go until I go too far, because you won't know your limit unless you push it and see.
Video
How To Take Action
I would suggest implementing a strategy to test different prices for your product or service. This is essential to find the optimal price that maximizes profit.
Start by picking a few different price points and observe how your customers react. For instance, if you're currently selling something for $50, try increasing the price to $55 or $59 and see if your sales remain steady. Buyers who are willing to pay $50 might not be discouraged by a small increase, but you won't know until you test it.
A good way of doing this is to look for pricing bands. If a small change, like moving from $27 to $29, doesn't affect sales much, you know that range still works. However, a jump to $70 might feel like a different category to your customers, so test these differences carefully.
If you ever see a significant drop in sales after a price change, don't panic. You can adjust by either reverting to the previous price or by removing a small feature to justify a lower price. The key is to make incremental changes and closely monitor the impact.
Always push your limits a bit. Keep experimenting until you notice a drop in conversions. This will help you understand how far you can go with your pricing strategy. This approach doesn’t require much cost or time but can significantly increase your business’s profitability.
This method ensures you are maximizing your revenue without alienating your customer base and allows you to make data-driven decisions about your pricing.
