Pricing is always tricky.
If you want sell something online, pricing could be the single most important decision you will take in promoting your own product. Competition is fierce and with many alternatives on the internet, you need to be comparable with the competition.
But do you?
Conventional wisdom usually mentions Cost Plus, Discounting (loss leaders and the like), Target return pricing based on an ROI you want to acheive and Value-based pricing where your price is based on the value it creates for the customer. The definition of Value based pricing can also include pay for performance pricing for services. The important point of conventional pricing wisdom is that the amount that customers pay for your services is directly proportional to how valuable they think your product or service is.
However, many people overlook look the importance of the offer in defining the value of their product.
You should spend a lot of time valuing your offer and working out how you can add value to your product to make it more attractive. This will mean you will be able to justify a higher price and to fully maximise the profit when launching your products to market. Some of the ways you can do this is to enhance the overall value of your product by adding additional products, services or information. If you make claims for your product you must also make sure there is credible proof of your product’s performance to encourage people to buy.