How To Find Your Ideal Price Point? And Why It Matters

authority know your audience Dec 15, 2023

Ivy Chen–How To Find Your Ideal Price Point And Can You Charge More

You Know You Can Charge More, but What Is the Right Price Point for Your Product or Service?

If you have ever considered selling your products online, you may have encountered the challenge of pricing your products.

With numerous factors in determining the correct price, just thinking about where to begin can be overwhelming.

As a result, pricing paralysis can occur when attempting to sell products online for the first time.

Your customers are human beings. Human beings love to give things away. We do it at Christmas. We do it for birthdays. We do it all the time.

We spend about 70% of our waking hours giving away something. So why not make money doing it? This is the big idea behind the "Gimme Gimme" mindset.

When you offer a product that your customers love and need, and that's easy to get, you can turn this giving spirit into profit for your business. The best part?

Your customers won't even realize they're contributing to your success. All the benefits will be theirs to enjoy.

We Want To Make The Most Profit On Our Products. The Best Way To Do That Is To Price Them At The Right Level For The Market–Pricing Power Equals Pricing Freedom!

Don't Be Afraid to Be Tough!

No matter your business, you're under pressure to get there and make money. When you say yes to something, there will be consequences to it.

And if someone comes after you and you cave on something, you'll never get respect again. So, don't be afraid to be tough!

You have to make some money and don't feel bad if you can't make a hundred percent profit on every single sale.

That makes the business fun—if you can make a lot of money without taking all of it. However, don't compromise your standards and ethics to make more money.

As an entrepreneur, promoting products and services and following through with what you've promised to your clients is crucial.

Remember, customers view you as the face of your brand. Therefore, treating them with the same level of respect you expect to receive is essential.

Maintaining high morale and transparency about your skills and work ethic will build your brand and reputation.

Understand Your Market

"What's the one thing all your customers want?"

This is one of the questions you should ask yourself as you try to figure out how to sell your products or services.

If your target market is small, determining what they want may take much work. But if you already have some insight into what your market wants, you can better position your products or services to meet that need.

But in a nutshell, do you really need to worry too much about what your target market wants?

You can put their needs into a larger context if your target market is large. It will be easy to tell what they want because you will know where they are coming from and what they want.

However, if you are dealing with a small market, you may need to go to them and ask them.

Another good way to figure out what your target market wants is to watch them. Do they like the products that you are selling? Do they seem happy when they are buying from you?

This will give you a clue as to what they think of your company and how they feel about your business.

Once you have identified your target market, a couple of steps will help you determine if your product is relevant.

First, check your target market's feelings about your product.

Talk to them and ask them, such as, "If you could spend $100 right now, how much would you spend on getting more leads through social media marketing?"

Or, "What would be your top three features to add to your social media calendar?"

All And All, Really Understand Your Market First!

Choose a Pricing Strategy That Works

A common misunderstanding among new entrepreneurs is that pricing is an afterthought. When you think of pricing, you think of price.

But really, pricing is the part that makes your product the most attractive to consumers! Pricing is how much people are willing to pay for something.

It is important to know that what you sell is valuable and that people would love to buy it repeatedly. This is where you find your ideal price point!

Ideal Price Point

I'm all for keeping pricing simple. There is a difference between price and value, though.

If I'm looking for a simple, no-frills deal that doesn't require any special attention, a higher price might be the ticket.

But I'll pay a little more if I'm looking for a quality product. If I'm looking for a high-quality product that requires special attention, I might spend more on that.

I'm not saying you're doing this. But when someone asks, "How much should I pay for a particular product?"

They usually look for a price that will cover their costs.

If you don't have costs associated with your product, you can set the price to whatever you want... but be reminded, that's an expensive hobby, not a business!

The best thing to do is to learn what your customers are willing to pay.

We Want to Make the Most Money on Our Products. The Best Way to Do That Is to Price Them at the Right Level for the Market–Pricing Power Equals Pricing Freedom!

Keep Prices Low in Low-demand Markets

Setting prices high in markets with a lot of competition is always tempting. You think you'll make more money.

This strategy has one big problem: low-demand products (those with low sales potential) need to sell for more money than high-demand products (those with high sales potential).

People who want your low-demand product are often willing to wait. They'll keep waiting for lower prices if you don't provide them with some incentive.

Hence, keep your offer as a low ticket in low-demand markets as a strategy to sell them much later after a series of nurturing processes done into your much higher high-ticket offer in the later stage.

Low ticket offers as being part of your high ticket's BootCamp, masterclass, workshop, and many more to be named, and you get the concept now.

Always Remember This– Low Ticket Offer Is A Strategy. Be Patient For The Bigger Results Later!

Price Your Offer High in High-demand Markets

You may have heard the saying, "You get what you pay for."

This is true in many cases, but if you price your product or service high in high-demand markets, you will reap the benefits of having a high-demand market.

In markets where demand is high, it's possible to implement a pricing strategy that considers the value or demand of a product or service.

This is when you charge more for your product or service in high-demand markets.

There's No Reason To Spend Time And Money On Creating Something Only Not To Get Any Return For It.

That's why it's important to carefully determine your ideal price point before putting a product out into the world.

Before you launch your new product or service, figure out where you would like to price it to maximize your profit.

There's no doubt that your ideal price point varies depending on the product, service, and market conditions, and this is the perfect time to get to know your customers, their needs, and their pain points.

You'll have plenty of opportunities to do this later in the sales process, but now is a good time to get to know them and the products you want to sell before you launch.