How Do I Price My PLR Products?
People will judge your product immediately by its price tag. This can be a good thing or a bad thing. You do it all the time yourself.
You come across a product and without even thinking, you subconsciously create a value for that product in your mind. This is a process that happens before you even see the price tag. This is what you have to remember when you price your digital products. Potential customers will attach a price to your product in their minds, even before they see what you’re charging for it.
You might think that all you have to do is go lower than that price to capture a lot of sales. Sometimes that works. Other times it raises red flags in the minds of your prospects.
They wonder why it’s priced so inexpensively. If they think a video course you’ve created should probably be worth around $100, it pays to price that product somewhere near there. Price your product at $80 or $85 and your prospects think they’re getting a good deal, but the price isn’t so low that it makes them question its quality.
Obviously, price your product higher than its perceived value and you aren’t going to earn too many sales. So, how do you find the sweet spot? How do you know exactly what to price your product so you make as much money as possible?
Here are a few tips on pricing any product you’re going to sell online.
Start with the Minimum Allowed in Your PLR Licensing
Sometimes PLR creators include pricing in their licensing guidelines. You might be told you can’t charge less than $27 for a PLR business-in-a-box bundle. In this case, start with that minimum allowed price and see how your product sells.
Monitor your sales. If they don’t deliver like you want, raise the price. Add more bonuses or products to your bundle. Do something so it carries a higher perceived value. If your PLR license dictates a minimum price tag for your product, go with that minimum price at first. This way you know there aren’t other marketers with the same product pricing it any lower than you.
Go Low, but Not Too Low, and Not All the Time
If you have a competitor selling something similar, lower your price tag. Don’t do this all the time. And don’t try to sell your product for $1 if a lot of your competitors are selling the same product or something similar for $20. This can raise a “what’s wrong with the product” question in the minds of your prospects.
One reason you might want to attach an extremely low price (a tripwire price) to a product is to help build your email list.
How to Attach a “Tripwire” Price Tag
Tripwire products have attractive price tags. They earn the tripwire name because their purchase triggers another event.
In movies, tripwires cause bad things to happen. An unsuspecting movie character trips a wire that is connected to a bomb and everything blows up. In the case of tripwire products, you want an attractive price tag to get someone to buy your product.
That tripwire purchase isn’t used to make a lot of money. It’s used to add people to your email list. It’s affordable, and that makes it attractive to a lot of your prospects. Then you can market to them further, selling products with bigger price tags and more profit for you.
How do you figure on a tripwire price? Look for similar products. See what your competitors are charging. Then go lower. Aim for creating products you can make rapidly so you can create a lot of them. Offering 5 or 10 or 20 how-to e-books for $5 each can add a lot of people to your email list.
Tripwire pricing is all about building a list of buyers. A list of 100 buyers is almost always more valuable than a list of 500 or even 1,000 people who have never bought a product from you.
As hard as you may try, your product isn’t going to reinvent the wheel. That means there are others like it in the marketplace. Look around. See what’s being offered. Buy a few products that are similar to yours.
What components are involved? What kind of value are you getting? What bonuses are offered? Use this knowledge to make your product better than the competition. Then attach a price tag that’s 20% to 25% lower than the competition is charging.
Higher Quality and More Value Mean a Higher Price Tag
Would you pay more money for a how-to course with 10 video modules or a 20 page e-book? The answer is obvious. It takes more time and technical expertise to create videos than to write an e-book.
Because of this, video is perceived as higher in quality than text-based content offering the same information.
Take some time to improve the quality of your product. Add modules. Add articles and blog posts. Include helpful how-to videos. The effort you make to improve the perceived value of your product in the beginning will pay off with more money captured by a higher price tag over time.
One way to improve quality is to add high quality graphics. You can do this easily by paying a graphic designer to create unique, one-of-a-kind images for you. You can inexpensively hire a freelancer on Fiverr to make images or graphics. You can also get free and paid quality images at the following stock image websites.
- Shutter Stock
Test, Test, Test
You can do all the market research in the world and still get the price wrong. Perceptions change all the time online. There might be something happening in your market you don’t know about which changes what people are willing to pay for your products.
The key to getting the price right is testing.
Use the above tips to develop a price tag for your product. Then give it some time in the marketplace. Drive as much traffic as you can to your sales page. Keep a record of your conversion rates, sales and traffic.
Then try a different price tag if you aren’t getting the results you’re looking for. Continue to split test your prices. Be patient and you will eventually find the perfect price tag, one that generates the most gross income.
You might think selling 5 video courses for $100 each is a successful campaign. What if you could’ve sold 20 units at $47? Your gross income would have been $940 instead of the $500 you generated with the higher price tag.
This is what split testing is all about. Keep at it, and you’ll eventually find the price tag for your product that generates the most income.