Pricing is something which I usually consider to be an empirical question. My standard advice is: “Start reasonably low so you’re more likely to get a volume of orders… then use that transactional velocity to create market intelligence with speed by aggressively split testing offers. That way you’ll distinguish buyers from non-buyers, and once you’ve optimized other factors you can start split testing price until you reach the sweet spot”
But there’s actually a lot more to it than that…
– How many options should you present?
– How do you set the buying criteria from a pricing perspective?
– What’s the cost of your prospect doing nothing?
– How can you “dollarize” the cost to your prospect of choosing to do business with your competitors?
I’ll be shocked if you don’t get dramatically more ROI by listening to this brief interview than it costs you in time.
Dr. G 🙂