Get a treasure trove of programs anyone who does business on the Internet should have today. All for one low price!

Check out the latest on our Blog!

Index

Previous Page (76) Next Page (78)

In general, if you’d like to make some profit and not lose too many unit sales, a
good compromise is to pick the spot where the Gross Profits curve
intersects the Unit Sales curve. In the example above, that would be at $58.
As you can see, depending on your goals, you could price this example
anywhere from $19 (ultra-penetration model), or push your price all the way up
to $299.
Choose $19 if you want to get a large percentage of the market and you don’t
mind losing money to establish yourself as a major player in the market or to
build a huge customer base. Choose $299 if you want to send a signal that
your product is a high quality one, you like the big, easy profit margins and your
goal is not to win market share.
One final thought... It’s not enough to just have a price model. For
example, we priced our first book, Make Your Site SELL!, to penetrate.
We knew it was better than $200 products of a similar nature. But we wanted to
penetrate a competitive market. So we priced it at US$17!
Unfortunately, MYPS! did not exist at the time. I’d love to be able to get into...
... a SiteSell time machine (our next product!).
I’d run MYPS! on MYSS! -- there’s a giant chance that a lot of $ signs passed
us by. A survey might very well have revealed no-unit-sale-decrease until the
$19.99 price point, which would have added $3 per book straight to our
bottom line.
To summarize you have three basic options...
OPTION #1 Penetration pricing ? Slide along the x-axis, to the left. How
far left? That depends on how aggressively you want to penetrate, and on how