Pricing is more than just how you sell your products. It\u2019s a marketing strategy in itself that says something about the value of your product. When you\u2019re pricing physical products, it\u2019s much easier to decide on a final number. You have production costs and materials to consider into that sale\u2019s price, so it\u2019s as simple as calculating everything together to ensure you earn a profit.<\/p>\n
When your product is digital, things are much less clear. Most likely you only put time and skill into the creation of your digital product. There might not be a clear way to determine just how much money that time is worth. You still want to make a profit, and you know your digital product has value. From software to e-books, you want to make sure customers know your product is worth paying for. These strategies for pricing below place your business ahead of the competition and demonstrate your value.<\/p>\n
1. Tiered Pricing<\/strong><\/span><\/p>\n One of the first methods for pricing competitively is to offer tiered pricing. People will often feel compelled to pay a bit more if they know there\u2019s more in it for them. Similarly, those who might have objected to a higher price before will feel more comfortable choosing a lower, more affordable tier. This is an incredibly popular option in the SaaS realm<\/a>, so customers don\u2019t need much introduction to this model.<\/p>\n Don\u2019t think you need to offer software as a service to use tiered pricing, however. This can work for virtually any digital product or service. For instance, if you\u2019re selling a downloadable e-book, you might include a lower tier with the e-book alone and a more expensive tier for the e-book and a corresponding workbook.<\/p>\n 2. Try Before You Buy<\/strong><\/span><\/p>\n A lot of customers object to online purchases because they\u2019re worried they won\u2019t be worth the money. That\u2019s why a \u201ctry before you buy\u201d strategy is so effective. By offering customers the opportunity to see for themselves whether they actually find value in the product, they\u2019re more likely to make a purchase. This also builds trust in your customer base.<\/p>\n Most software companies<\/a> already offer a 7-day or even a 30-day free trial. Having an autoresponder in place will remind customers that their trials are expiring and it\u2019s time to consider a purchase. 44% of SaaS companies offer a free trial of some sort, but this can work for virtually any type of digital product. Using the e-book example, a trial might include offering the first chapter of the book for free so customers can learn more about the content of the document before making a purchase.<\/p>\n 3. Added Bonus<\/span><\/strong><\/p>\n Who doesn\u2019t love getting something for free? We see this all the time at in-person shopping<\/a> establishments. Offering an incentive with purchase can go a long way towards convincing people to either reach a certain price threshold or to make an extra purchase. For instance, a virtual accounting service might let users download free graphic design invoice template<\/a> with the purchase of a subscription.<\/p>\n This all comes down to perceived value. Customers want to get the most bang for their buck. Having a freebie shows them that this is a high-value purchase that\u2019s worth taking their wallet out for. The key is to make sure your bonus has substantial value to add to your core offering.<\/p>\n 4. Price Psychologically<\/strong><\/span><\/p>\n We\u2019ve all seen the prices in the store that read $29.99 instead of just $30. This isn\u2019t just for fun. It\u2019s a psychological method of pricing that makes things appear to be a better bargain than they really are. That\u2019s why you\u2019re more likely to see prices ending in zeros in high-end shopping stores, while discount stores are known for prices ending in \u201c7\u201d or \u201c9.\u201d These numbers have been conditioned to show a bargain.<\/p>\n <\/p>\n 5. Learn the Market<\/strong><\/span><\/p>\n Finally, it\u2019s up to you to learn your market as much as possible. You need to perform a complete analysis to understand how your competitors are pricing their digital product. If you want to compete against these products, you need to price them accordingly. That doesn\u2019t mean to price your digital product lower, but it means you need to be careful with your strategy.<\/p>\n A product priced slightly higher than your competition can show value. It might lead users to believe your product is of higher quality, thus worth the extra funds. This only works if you can demonstrate your value with a strong sales strategy. On the other hand, pricing slightly below your market competition can also get you an edge over those in-between buyers.<\/p>\n Pricing as Marketing<\/strong><\/span><\/p>\n In many ways, your pricing strategy should depend on how you market your product. Because you don\u2019t have a clear materials list or production cost associated with most digital products, it\u2019s vital you find a way to price your product that works for your business. It\u2019s tempting to match yourself to your competition but think outside of the box.<\/p>\n Untraditional pricing methods are often rewarded. Finally, don\u2019t be afraid to try new things. If you try one strategy only to find it doesn\u2019t work, don\u2019t be afraid to try something new. Your prices don\u2019t have to be set in stone. Leverage your pricing as you would any other aspect of your marketing, and you\u2019ll find success.<\/p>\n","protected":false},"excerpt":{"rendered":" Pricing is more than just how you sell your products. It\u2019s a marketing strategy in itself that says something about the value of your product. When you\u2019re pricing physical products, it\u2019s much easier to decide on a final number. You have production costs and materials to consider into that sale\u2019s price, so it\u2019s as simple<\/p>\n","protected":false},"author":7,"featured_media":9240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[176],"tags":[1694,1695,1696],"class_list":["post-9232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-updates","tag-digital-product","tag-pricing-strategies","tag-product"],"yoast_head":"\n