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In today’s Q&A, we talk about how to determine the price of digital products and services.
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Let’s dive into this week’s question!
JOCELYN: Hey y’all! You’re listening to our Q&A with S &J.
SHANE: Welcome to the Flipped Lifestyle Podcast, where life always comes before work. We’re your hosts, Shane and Jocelyn Sams. Join us each week as we teach you how to flip your lifestyle upside down by selling stuff online. Are you ready for something different? All right, let’s get started.
Hey guys, welcome back to another Q&A with S&J. Our question today comes from Liz Fulcher and Liz writes:
“Hi guys. Since I started listening to your inspirational podcast each week, I’m on a roll producing lots of digital products. I’ll soon have a 10-page ebook and a five-module online course to offer my audience; however, I still need to price them. How do you determine the value of your digital products, online course, and consulting services? Thanks so much for all you guys do.”
All right, Liz. We get a lot of questions about pricing so this is a very common topic. It’s going to be an awesome discussion for us today. I’m actually going to turn the first part of this over to Jocelyn because Jocelyn actually got to meet Liz the other day in person.
JOCELYN: I did and Liz has a website over at AromaticWisdomInstitute.com. Liz does all kinds of fascinating things with essential oils. I went to an event with her recently and I brought home a little – I don’t know what you would call it – I guess like a sniffer of some…
SHANE: It sounds like drugs, what are we talking about here on this show?
JOCELYN: No, it’s really not. It has essential oils in it and it was for allergies, seasonal allergies that type of thing because I have issues with that a lot. That was really cool and I really appreciated that. Liz has just such a great knowledge about essential oils so if you are interested in essential oils, go check her out at AromaticWisdomInstitute.com.
All right, Liz, let’s jump into your question about pricing. You have a lot of different products here it looks like and it is definitely difficult to figure out prices for your products sometimes especially when you have such different things to look at. When you’re thinking about pricing, it’s important to remember that you don’t want to price your products too low.
That is a common mistake that a lot of people make starting out. I made it myself and you don’t want to do that. Make sure that you are putting the appropriate value on the things that you’re selling. Some ways that you can do this are by looking at the competition, seeing what other people are doing. Remember, you’re not trying to low ball your competition. We actually did a podcast recently and we will link to that in the show notes about pricing and how to price your products.
As far as your courses go and your consulting service, again, just look around out there and see what other people are offering. It doesn’t necessarily have to be in your industry. Just get a good idea of what other products and services are worth. If you’re just starting out especially on the consulting and online courses, you might want to start a little bit lower. Get an introductory group into your courses or your consulting and get feedback from them on how to make it better. Once you do that and you start increasing your demand, then you can also increase your prices.
SHANE: We always recommend that you try to price your product in the top 10% of your market. When you do that research Jocelyn was talking about, Liz, you go out and you look on Google, maybe find some people that are similar to you or maybe find a competitor. See what they are charging and you really want to be brushing up against the top level of that market because if you price your prices too low if you put things out there for $5, $10, you’re never going to make any money online.
You’re going to spend just as much time getting customers whether you’re looking for a $5 price point or a $500 price point. If you want to go get 100 new customers, you’re going to have to spend the same time, money, and effort getting 100 customers to pay you $5 as you are to give you $50. You might as well go ahead and select a price at the upper end of your market. That way, you are able to actually make as much money as possible in your space.
Make sure you’re not putting everything in one basket. It says here that you’ve got a 10-page ebook and a five-module online course. Those are two different products. You could actually probably use the ebook as an opt-in to kind of collect the leads of people who may be interested into your five-module online course and then you could price that really high or you could even use your ebook maybe as a low-end kind of introductory level price.
Maybe you can charge $25 for that if it has good information in it and those people that spend that money on the book are going to be very highly qualified leads for your five-module course which you could sell later for $100, $200, $300 whatever you think it’s worth, but you could use those as kind of products that feed off of each other.
JOCELYN: Just remember that pricing is something that can always change. If you’re not happy with your pricing, change it. Change something around so it’s working better. Just remember that you need to be sure that you’re offering your audience lots of value in your products and that you’re pricing that product accordingly.
SHANE: Yeah 100% and nothing is permanent on the internet. You can change your price by clicking on it, hitting delete, and raising it or lowering it at any time and it’s really easy. You can even experiment with two prices at once. You can create two separate landing pages and you can have $25 on one and $50 on the other.
When people click a link, they are automatically kind of directed to that. LeadPages lets you split test your sales pages that you create in LeadPages. You can actually have two price points on two different pages and when people click your link, they go to one of the two pages randomly and you can see which one converts the best.
You’d be shocked at how much better high prices convert sometimes compared to lower level prices. If you’d like to learn more about pricing, we actually have a longer podcast about this and you can find that over at FlippedLifestyle.com/podcast22. That podcast is all about pricing. We give all of our best tips over the hour that we do the show or the 45 minutes or whatever the length of that is, and you can hear all about how we price our products in our niche markets.
JOCELYN: Hope that helps, Liz. Thanks so much for your question.
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