I have heard from several online marketers and I have read it in a few books, that the price of a product or service is very important regarding how you look at or think of the product or service. If you put a small fee on it, people might think that it’s not that good because it’s so cheap. On the other hand, it’s so cheap that I just have to buy it. We all (or at least most of us) are receiving tons of offers every single day. The prices varies a lot, from $4.95 to several hundred dollars. How do you think that the online marketers figures out how to put a price tag on their product or service?
Is finding a price like a science? Do they use research to find the right price? For instance, I know of many traffic exchanges and most of the good ones have a price of either $9.95 or close to $20 a month for the most expensive membership. I know of another one that has a $39 (not sure if they have adjusted this price, but it was this the last time I checked). Does this high price make it a better traffic exchange? The same applies to autoresponders, e-books and all sorts of online marketing tools.
A time ago I heard from a rather experienced marketer that the higher the price of a product or service, the more interested people would be to get a hold of it. The high price would mean that it’s something exclusive, something just a few people can afford and it means that it has to work (due to the high price). And if you put the word “secret” in there, well then you might have a winner 🙂
I am not sure how this goes, but I think it’s interesting to see how prices do have an effect on myself. I tend to get very excited when I see a product I really like and it costs less than $20, I could probably buy unlimeted amount of products for that price. But as soon as it costs more than $20, it could be $29.95 and I would stop and think twice (or more) if I can afford it and if it’s good enough for that price and so on. To me, the magical price limit is $19.99 (one time fee or monthly fee).
It feels like when it’s less than $20, it’s not like spending money. It’s so cheap that I don’t think about it, if I feel the product is interesting.