Picture this: you’re in a candy store, surrounded by colorful confections that promise to tantalize your taste buds. You reach for a shiny wrapper only to find it priced like a luxury car! Suddenly, that sweet treat feels more like a financial decision than a delightful indulgence. Pricing digital products can evoke similar emotions—one wrong move and potential buyers might feel as if they’re being asked to fork over their life savings for an e-book on knitting patterns.
But fear not! Setting the right price isn’t just about slapping on a number and hoping for the best; it’s an art form akin to balancing on a tightrope while juggling flaming torches. From understanding your audience’s willingness to pay, to considering the perceived value of your product, every aspect plays into how you position your offerings. So let’s dive into the world of price points and discover how to strike that perfect balance between affordability and profitability.
As the number of digital products continues to grow, it's important to understand what each product is worth.
Digital products and services are sold at a variety of price points. When pricing digital products and services, there is an art to setting the best price for your product. Pricing too low can lead to unrealistic expectations; but on the other hand, pricing too high can leave you without any customers. If you want to sell more digital goods or services, consider pricing them between $5 and $20 dollars—a range that makes buying more affordable for most people.
Just like any other product, your digital product should be priced accordingly. Those new to the industry may not know what to charge for their first product. With some research, you can determine the average price of the industry and then set your price accordingly. The first thing you should be aware of is that there are two types of digital products: downloadable products which are typically priced higher than physical products, and services which are often priced more expensively than traditional goods.
It is a fantastic notion to have your own digital product since it enables your customers to obtain immediate access to your product without the inconvenience of having to wait for it to be delivered by mail. They also have immediate access to the knowledge, allowing them to put it to immediate use for their own benefit. The fact that you can teach your consumer anything is a major benefit, particularly if you're selling a “how-to” product or selling a product in which you're instructing your buyer.
The digital format is the way to go. Not only does it benefit you by allowing you to make immediate sales with minimal effort, but it also benefits the consumer by allowing them to avoid having to wait for the goods to arrive. They will be able to use it as soon as they have paid for it. Consider the following scenario: you are in the industry of selling marketing products to other internet firms. You're well aware of how rapidly things change on the internet. Consider providing them with access to tried-and-true tools and tactics that they can put to use right away to help them expand their company.
If you're providing a really excellent product with a compelling offer, I'm willing to wager that the majority of those firms would jump at the chance to do business with you. They'd want to put your recommendations into action as quickly as feasible so that they may start producing more money as soon as they possibly can. This would be made possible via the use of digital items. With an immediate download, they would be able to put into practice what you teach in minutes, rather than having to wait a week or two for your product to come in the mail. Those one or two weeks of waiting may end up costing them hundreds or even thousands of dollars, simply because they'd lose out on the opportunity to put the tactics you educate them into action.
Of course, in order to make sales, you'll need to charge a reasonable amount for your digital goods. So, what's the best rule of thumb for deciding the price point of a digital version of a real object that's not a physical thing itself? What should you charge for the digital version of your tangible product if the tangible product costs, say, $997? You must first recognize that if you have a physical product, and you are also able to develop an electronic version of that product, this may work to your favor.
What you can do is develop two separate pricing points that are strategically different. The actual thing that you will give them in the mail (which will take a little longer to arrive), but they will have the convenience of being able to carry it around with them wherever they go. They could read it on the couch, at a nearby café, or even on the beach if they wanted to be more comfortable. They'll like the ease and comfort of having a tangible copy of the document. As a result, you may make an offer to them for $997. Many individuals put a higher value on hard concrete items than they do on abstract ideas.
Those folks on your list who decline to purchase the physical product may then be offered a 50 percent discount if they opt to purchase the digital version. Consequently, you're selling it to them for $497, which is a $500 savings off the list price due to the fact that you're providing it to them electronically. Because you'll be able to sell to those clients who first turned you down because your offer seemed to be too pricey, I propose that you do so. They will still be able to access the product via the digital version, but they will not have the advantages and convenience of having a physical copy. Actually, that's exactly how I accomplished it with one of my product offers.
What I did was sell this bundle for the sum of $997 dollars. I made the offer on the internet. “…well, this bundle costs $997,” I explained. And then, if they said no, all I did was convert it to a digital form, which they were able to have for half the price and get it immediately! And I've now realized that I should have done it for all of my product offers, since it's a great way to make fast digital income! I'm kicking myself right now for not using this method across the board with all of my items, but better late than never, right?
When it comes to tapping into a market that may not have the financial means to pay for your first product offering, try creating a digital version of your product if you already have one. You'll be able to acquire access to funds that would have otherwise been lost to the system. Examine all of your possibilities, as well as your market, from every possible perspective. There may be chances available to you that you were previously unaware of.
Setting the right price is both science and sorcery—it requires data-driven decisions sprinkled with a dash of intuition. Just like Goldilocks found her perfect porridge, you too can find that sweet spot where customers feel they’re getting immense value without feeling financially assaulted.
So go ahead, experiment with different strategies! Test those price points like they're flavors at an ice cream shop until you find one that keeps customers coming back for more. After all, in the vast marketplace of digital products, savvy pricing could very well be your golden ticket—or at least a decent scoop of mint chocolate chip!
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Suggested External Resources
Understanding Digital Product Pricing Strategies
https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/30/understanding-digital-product-pricing-strategies/
The Psychology Behind Pricing Digital Products
https://neilpatel.com/blog/pricing-psychology/
How to Set Prices for Your Online Courses
https://www.teachable.com/blog/set-prices-online-courses
