Are you branded cheap or expensive in your industry?
What is the space you want to occupy within your market? You can be the benchmark for cheap and massive products, or you can earn your place as an elite company, which stands out for its quality and service. Learn the 3 different levels in which you can be placed with your prices and why you should never be considered one of the cheap providers in your market.
How are your prices compared to the rest of your market?
It is important that you take this into account when pricing your memberships, products and services; since you must be very clear about the effect it will have on your business and the image you will project to your market.
Basically, there are 3 different levels in which you can place yourself with your prices in the market:
1. Price war:
The seller seeks to position itself as the provider that always offers the lowest prices. This works well in retail and in large companies that can do economy at scale, but it is a death trap for an internet entrepreneur.
If you try to stand out for having the lowest prices, unless you handle a huge volume, your business will not be profitable.
2. Equivalent prices:
Your prices are at the average market value. You stick to what your competition charges.
3. High prices for high value products:
In all areas, both online and offline, there are "elite" or brand products that have distinguished themselves from the rest for their quality, duration and excellence.
It happens in car brands, clothing brands, sporting goods, in EVERYTHING, also in Internet products.
Your prices should be between level 2 and 3.
Remember that there will always be a market that prefers to buy at level # -1, that of very low prices. Don't talk to them.
You must go to a market that knows how to value what you deliver. If someone finds that your products have a very high price and you feel that you deliver the value that corresponds to the price, they are not your ideal customer. And period. You won't be able to please everyone.
Always look for the link of people who know how to value what you deliver, so your business experience will be pleasant for you too.
The extreme of this is when you deliver a lot of free content, a very common mistake that fledgling web entrepreneurs make.
With free content you must advertise and position yourself, that is, you only deliver high-value information to demonstrate that you master your subject.
In your free and low-priced products, you only provide information. Never get to the point of consistently helping them implement, or transform your followers. For that they have to pay.
If you give away at this level, apart from working hard and earning nothing, you will attract a horde of "cheap" customers who want everything for free and will never buy from you.
Your products have to be profitable
The vast majority of products in your business should be profitable sources of income that bring profit to your business, with the exception of free gifts that have another purpose.
Each product that you add to your business must have a price that is placed in such a way that that product has its own profitability, without depending on the sale or not of other products.
After having several products of this type, you will have established your business with multiple sources of income. If several of your products are memberships, you will have several sources of income flowing to your business continuously.
