Don't know how to set prices for your membership site? It is not so easy! On the one hand you want to be happy with your sales, without feeling that you are giving away your wisdom, but, on the other hand, you want the price not to drive away your potential customers. Learn 5 key things to keep in mind when placing your price on your membership site.
One of the most frequently asked questions by my clients is how to price their products.
When you already have a defined niche and you know your ideal client and their needs quite well, it is relatively easy to devise a product or service that can meet that need.
The problem is to put a price that, on the one hand, reflects the value that the product has for the businessman, so that he is happy with each sale. But on the other hand, it is also necessary that the price does not drive away buyers, either because it is very low or very high. (Yes, too low prices scare off your customers, avoid them!)
You will also want it to be related to the other products you offer on your membership site.
Below I give you a guideline of 5 points that will help you set the right price for your services and products:
1. Your intuition:
Many people set their prices this way. They come up with the idea for your product / service / membership, design the product and, in making a price decision, simply put the price they sense will be the best.
2. According to the market:
You stick to what the market dictates before you put a price on your product.
3. According to their cost:
Program costs are calculated and then a pre-established profit margin is added: 20%, 30% or 40%.
4. According to the cost of your time:
You calculate how much time you are going to have to invest in making and delivering the product and you set the price according to what you charge per hour.
5. According to the value of the product:
The price is placed according to the value it has and at a level that is profitable for you.
It is a combination of the first 4 points:
Four foolproof steps to place a profitable price according to the value of your product.
Step # 1: Set a price according to your intuition.
Step # 2: Calculate the cost of your product.
After intuitively setting the price, calculate your cost. It is important that you make sure that the price you intuitively set pays the product.
Step # 3: Compare with the rest of your products.
You should also make sure that the price is compatible with the other products on your site. Your customers should see that there is added value in your highest value products.
Step # 4: Is the price a reflection of the value your customers will get?
A good way to find out is to make a list of all the benefits that your customers will receive with your product / service.
Then, in a shallow way, put a price on each benefit that your customers receive and calculate if the price of your product corresponds to the set of these benefits.
