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Are You Making the Most Common Pricing Mistake?

In my hurry to launch my first product, an eBook called The App Design Handbook, I almost made a mistake that would have cost me over $10,000, a mistake that I see being made with products all around the web. Luckily for me, a few people were kind enough to lead by example and show how important it was to fix this.

No, the mistake is not charging too little, though that is a very common mistake as well.

The mistake is to have only one price for your product.

Pricing Based on Value

I’m sure you’ve heard that you should price based on the value your product delivers, rather than another metric like how long it took you to create it. This is very true, but has one issue. The value changes for each person.

One of my customers may use my design advice to improve sales for their niche iPhone app, whereas another customer may work for a large developer with a very popular application.

The value is radically different for these two customers. So, if we are truly pricing based on value, we should give the customers who get more value from the product a method to pay more for it. That’s where multiple prices come in.

The customer who is working on a team with a larger budget will easily pay more if they think it will help them. After all, if you have the company credit card out and have made a decision to purchase, there isn’t a difference between $40 and $140. At least not to that customer. To me, as the seller, I just made over 3x as much on that sale.

If you are selling to businesses, it is very important to understand how purchases are made for your type of product. Learn where the threshold is for companies to spend petty cash versus having to get a manager to approve the purchase. So long as your product demonstrates clear value and is below the maximum the employee can spend without manager approval, it doesn’t matter what the price is.

Price Anchoring

Since information products aren’t physical, it can be hard to know what they are worth. As consumers, we usually determine worth by comparing to other similar products. In the case of my eBook, the closest thing a consumer might compare to is a Kindle eBook. That sets the price somewhere under $10. After all, it’s a digital product, without printing costs, so why should they pay more than they would for a physical book?

It’s hard to make a good profit selling that low, so I never want the customer making that comparison. The customer will compare it to something, so let’s control what that is.

If I tell you the book is $39, you need to compare the value to something else, something which I don’t have control over. But if I tell you the book is $39, but for $79 you can buy the book plus all these great videos and code samples, then you are comparing the two packages to each other. All of a sudden $39 sounds reasonable, and you are trying to decide if the extra value in the $79 package justifies the price increase.

By adding a second offer, at a different price point, I completely changed the conversation.

Bracketing

If I add a third option at $169, then it changes the conversation again. Through bracketing I have driven the focus towards the middle package. While $79 may have seemed expensive before, now it is reasonably in the middle.

William Poundstone, in his book Priceless: The Myth of Fair Value, talks about offering three options with this story. (I am quoting from ConversionXL, since I want you to read their article as well.)

People were offered two kinds of beer: premium beer for $2.50 and bargain beer for $1.80. Around 80% chose the more expensive beer.

Now a third beer was introduced, a super bargain beer for $1.60, in addition to the previous two. Now 80% bought the $1.80 beer and the rest $2.50 beer. Nobody bought the cheapest option.

Huh, that’s actually not good. The seller actually lost revenue in this case through bracketing. But that’s because he bracketed his price down. The story continues.

Third time around, they removed the $1.60 beer and replaced with a super premium $3.40 beer. Most people chose the $2.50 beer, a small number $1.80 beer and around 10% opted for the most expensive $3.40 beer. Some people will always buy the most expensive option, no matter the price.

So by bracketing the price up, meaning that the third price point was the highest, not the lowest like in the first example, revenue increased, showing that through bracketing you can push people towards the middle option.

Now, that is the theory part of the article. It played out a little different in practice for me, and I am still trying to figure out why. I’ll get into that below.

Confusion 

So far we’ve been adding price points with more and more success, so where does it stop? It stops at three. Adding too many is just going to cause confusion. If you give people too many options they may just add one more of their own: to walk away and not buy at all. So, keep it simple and have three or fewer packages.

Note: I should add that I have a fourth pricing option for my new book, Designing Web Applications. I want companies to purchase bulk copies for their entire team, so I plan to add a 50-seat license for $1,000. Since this won’t even be considered by 99% of the purchasers, it will be at the bottom and visually different from the rest of the packages. Who knows, it may even help anchor the price.

The Extra $15,000

Now let’s get into how these ideas made me an extra $15,000. As I write this, my book, The App Design Handbook, has been available for 8 weeks. Only including sales through my site (meaning the numbers from deals on Dealotto and AppSumo are excluded), the book has made $30,697. Let’s take a quick break to say that yes, you can make a living selling products online.

Anyway, back to pricing.

I offered 3 packages (see the screenshot below for details); each higher package had more features and delivered more value than the last. Here is the package breakdown and how many sales from each:

  • The Book ($39) – 226 copies sold
  • The Book + Videos ($79) – 137 copies sold
  • The Complete Package ($169) – 100 copies sold

I was actually a bit surprised based on these results. I thought that the lowest package would sell the most, with the middle package as a close second. That’s actually how it started the first week, but since then I’ve sold many more of the lowest package.

What gets more interesting is when you look at revenue from each package:

  • The Book ($39) – $7,354
  • The Book + Videos ($79) – $8,923
  • The Complete Package ($169) – $14,420

So the package that sold the least generated almost 50% of the revenue. Nice!

(By the way, don’t try to multiply the sales price times the copies sold. I had a launch day sale, so those numbers won’t make any sense.)

The Impact of Multiple Price Points

Since I still kept my lower price of $39, my higher prices didn’t exclude anyone from purchasing.

So, let’s redo these numbers assuming that I only offered the lowest price. The fact that I ran a launch day sale at about 25% off makes direct comparison rather difficult. So I am going to find an average low price by dividing the revenue from the lowest package ($7,354) by the number of sales (226) to get an average price per copy of $32.50.

This assumes that if I didn’t offer the higher packages then everyone would have purchased anyway, but at the lowest package, since it is the only thing I would have offered. I sold a total of 463 copies at all price points. 463 multiplied by $32.50 is $15,047. This is my estimate of how much I would have made with only a single price point.

Compare that to my actual total with multiple price points of $30,697, meaning that multiple packages increased my revenue by over 200%. That’s insane. That seemingly minor change is what changed the product sales from being a success, to being a blockbuster (from my perspective).

Now, I could have increased the price of my single product, which presumably would have increased revenue above the estimated $15,047, but I didn’t want to price too many people out of the product. By adding additional packages, at different prices, I still allowed everyone to purchase the book, but I gave those who were willing to pay more an opportunity to do so.

You may be thinking that if three packages worked so much better than one, should we try five or ten packages? Unfortunately it’s not that simple. The Jam Study (as its been nicknamed) showed that when given too many options, fewer purchases were made. Quite simply, when a customer had 24 jams to choose from, 3% made a purchase. When they only had 6 jams to choose from 30% made a purchase. If you offer customers too many choices they can become paralyzed by the decision and just walk away (online the equivalent behavior is to hit the back button).

Personally, I like to limit the packages to three or fewer. Though you should test this with your own audience.

I am so glad I didn’t make the mistake of only having a single price point. On your next product make sure you don’t either.

Oh, and if you want to see another one of my pricing pages in action, take a look at my latest book, Designing Web Applications.


What has been your experience with having different price points on your products and services online? Let us know in the comments below this post.

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  • http://www.myjobsit.com Michael Kawula

    Great post and love the illustrations. Just recently read something similar in Chris Guillebeau’s The $100 Startup saying to offer “limited” but different price ranges. This was great!

    • http://nathanbarry.com/app-design-handbook Nathan Barry

      Yep, Chris’ advice is wonderful. I’ve learned a lot about selling books and self-publishing from him.

  • http://www.detailedsuccess.com Kris @ Detailed Success

    Amazing article Nathan!

    I really love the idea of price anchoring and that such a easy change made you 200% more profit. Completely mind blowing.

    Best of luck with the next book. Can’t wait for the case study for that as well.

  • Jacob

    Great article. I love Poundstone…Fortune’s Formula is a decent book good too, especially for anyone interested in investing, but Priceless is a must read for business owners. The description on Amazon pretty much sums it up:

    “Prada stores carry a few obscenely expensive items in order to boost sales for everything else (which look like bargains in comparison). People used to download music for free, then Steve Jobs convinced them to pay. How? By charging 99 cents. That price has a hypnotic effect: the profit margin of the 99 Cents Only store is twice that of Wal-Mart. Why do text messages cost money, while e-mails are free? The answer is simple: prices are a collective hallucination.”

    Also, congrats on such a successful launch. I bet you were stoked! Thanks for your contributions here and keep up the good work.

  • http://www.ThinkDoBusiness.com Noor Shawwa

    Great article Nathan. Thank you for sharing your experience. It adds a lot of value to see actual results of applying a theory.

    Noor

  • http://www.epicwebstudio.com/ Rodrigo Flamenco

    Nice! Hey Nathan, I have a web & video design business, and I’m in the process of improving everything in it, my video, my copy sales, the landing page and also, something that was in my mind was to put a table with different plans, for example, $500 for a simple video and $1000 for a full animated in motion graphics video, so you get the idea.

    Would you recommend this for a service based business, many of my friends are telling me to leave the price open so that way I can charge more for different type of projects, after all, every now and then we get some big customer asking for some specifics details that would not be in a normal project, like a forum to create a community, an online service so users can register and have all their info there for diets, hell, I even had a customer who wanted a full game on the site so they can upload a picture and play with the make up and hair styles.

    In those cases we have to charge much more than the average site, so that’s why they tell me to let the price open.

    What do you think?

    • Paul McGuire

      Well one thing to consider is perhaps the levels of pricing would come not from the product itself but the service you provide during or after the sale. So depending on the customer, you may find that some need support more than others. You could offer a basic plan with limited support and a more expensive plan with premium support.

      For example, a wordpress theme I bought recently limits support generally to issues with the framework of the theme itself. But one might pay significantly more for access to support with generally implementing it to wordpress or even more for support on how to build and implement a child theme.

    • http://nathanbarry.com/app-design-handbook Nathan Barry

      I’ve never tried package pricing for services. But have heard others have been successful with it. I like the idea of having a really specific offer, like a “1 minute video for your startup for $1,000″, but then branch out from there.

      So that offer may get people interested and then you can tweak it depending on their needs. I think 37signals offered flat pricing for their design services at one point. You may read more about how that worked for them.

    • http://www.epicwebstudio.com/ Rodrigo Flamenco

      Thanks Paul, Thanks Nathan, both ideas are good, I’m in the middle of re-branding right now, and I think there’s a couple of things I can do :) thanks for your help.

    • http://www.red-slice.com Maria Ross

      Rodrigo, I’ve seen many service businesses go this route recently (included myself) to great success. I started packaging up my brand strategy consulting for smaller clients/ Some larger businesses will always require some custom work, but at least I have a scope for the basic stuff. It works really well, especially if you are very clear on what they get with the package – then you can handle any difficult conversations down the road when it comes to “scope creep.” My clients have loved this, and the other benefit is that it keeps the project moving along swiftly and effectively. Good luck!

  • http://youronline.biz Jacko

    Excellent points.

    One lesson I’ll never forget about valuation and pricing came from the 2008 real estate crash.

    Property appraisers were happy to tell people their houses were worth $500k. When they were really worth less than half that or worse.

    The lesson I learned is nothing is worth a dime more than what people are willing to pay cash for it.

    So, if your product requires people to get LOANS to make a purchase then you should be shaking in your boots. Credit cards too.

    Real products will motivate people to gladly separate from their hard earned cash.

    The funniest and most accurate example?

    The snuggie.

  • Holger

    Hi Nathan !

    Congrats on your revenue. Always nice to see that some theories really work out when applied to real businesses.

    You intentionally made the trade-off not to publish on a platform like Kindle, right ? Obviously you rated the opportunity costs of doing without such a big platform quite low ?

  • http://gyantastic.com/ Ram Shengale

    Yes this really works. I saw the same thing a couple of days ago in a video by Derek Halpern of Social Triggers. Great post.

  • http://emilyjacques.com Emily

    Oh, my gosh, what perfect timing! I have just began a PPC campaign to sell a new e-book, and so far, no takers. I lowered the price, and so far, no takers. I am going to try this strategy and see if I start getting buyers. Thanks for this great post! :)

  • http://marketingwithsergio.com Sergio Felix

    Hey Nathan, what an amazing case study my man and I have seen this exact formula in some marketing offers (three options, no OTO’s) and you can always upgrade inside the membership site if you please and at the SAME initial price just by paying the difference.

    I am planning to launch a training in the upcoming days and I was hesitating about the price strategy, I thought about a cheap option, a premium option and an All In option and then I figured I was going to do just one price for everyone and just maybe a premium price at most.

    So thanks again, I’ll re-consider what I’m doing and try to come up with three compelling different options again.

    Sergio

  • http://www.swimuniversity.com Matt Giovanisci

    Great article about ebook pricing and I liked the imagery used, that really helped explain the bracket system.

    I gotta get out there and write an ebook or create some sort of product. Your design on the website and the ebook are fantastic, Nathan. Excellent work!

  • http://www.nohives.com Yassin Madwin

    Yeah it’s a winning deal

    on a psychological level it happens like this, so if i told you to choose between x or y, there is a good chance that you might be more critical and perhaps not choose anyone .

    Then if i asked you to choose between 1, 2 or 3 your subconscious get only the last command 2 or 3 and thus you’ll choose one of them. so instead of thinking should i buy ? the question becomes which one ?

    the second rule is simple : if it is cheap that it isn’t worth it, but not every time this works i conducted a survey asking my visitors of what they think about a product ( digital ) of 29 bucks considering that the competition sells for 100 and the crashing majority answered that they prefer the cheap one !

    cheers

    • Saif

      Yassin – why do you think the “if it’s cheap then it isn’t worth it” rule doesn’t apply the digital?

    • http://www.nohives.com Yassin Madwin

      Knowing Your prospects is what really makes the difference Because People buy for different reasons.

      some people buy certain things to manipulate their social status, to feel a sense of self esteem, to please a hidden addiction and so on …

      Imagine yourself walking by a store, then you notice an IPad for 50$ even though you don’t need it there is a high chance that you would take it because it’s a winning deal and people don’t wanna feel guilt and risk loosing such an easy bargain

      1 : Know Your Prospects
      2: find the best selling position
      3: Craft your sales page so that they feel that it happens once in a lifetime

    • http://www.pbuu.net Sadik Ibrahim

      Yassin thoughts on this would be appreciated:

      I’m currently embarking on a directory project and have 4 options:

      Free – £100 – £120 – £150

      My issue with this is the 1st option. If i get my potential customers to look at the chargeable offerings then great, i’ll make a sale.

      However my issue is the FREE option and the gap between this and the others.
      I have to offer the free option as all my competitors offer it.

      Yes i can spice it up with design and what not but how do i make them look past the FREE option in the first instance?

  • http://www.h4hitech.com Sapna

    Hi Nathan

    Awesome case study and you made a profit out of that, really that is marvelous. Variation in Price points really have a psychological impact on the buying behavior. You have proved this now.

    I surely will be starting something soon and will apply this strategy.

    Thanks for sharing this great info.
    Sapna

  • http://www.designyourownblog.com Marianney

    Brilliant! Thanks for spelling it out so clearly. I can’t wait to have fun pricing my own options ;)

  • http://www.NicheWolf.com Dori From NicheWolf

    Hello Nathan ,

    these are some great revelation for me . I never knew that by adding different price points to a product , one can increase sales astronomically . I will definitely put this idea to work and see what happens.

    Thanks for sharing

  • http://www.planana.com Fei Xiao

    Hi Nathan,

    This is great. We’re currently in the process of figuring out our pricing as well, and are trying to figure out how to quantify the value we add and charge customers accordingly.

    What are your thoughts on:

    1. Basic – Charge based on per usage, but limited at say 2 a month
    2. Pro – Subscription per month if you have high usage
    3. Enterprise – call us for a quote

    Great insights!
    Fei

    • http://about.me/mikeschinkel Mike Schinkel

      Hi @Fei,

      I’ll jump in since Natan hasn’t answered. Offer two sets of three option plans; one for pay-as-you-go and one for monthly subscription. See how MailChimp does it: http://mailchimp.com/pricing/

      And your enterprise option should be a footnote under your other three, i.e. “Call us if you need a custom solution that doesn’t fit the above options” or something like that.

  • Richard (eChimp)

    Great article Nathan! We’re doing something similar for our web design business. Rodrigo you were asking about whether to do it for your web/video service, well check out our eChimp Web Design pricing page to see how we’ve done it. When people want extras, we just add it onto the standard packages. Our small business clients LOVE transaprent clear pricing like this and it converts like crazy since people don’t need to submit quote requests. Cheers

  • http://www.techjot.com TechJot

    That’s an absolutely fantastic write-up Nathan. Gave great insights into pricing in a more practical, reasonable way possible. Fantastic job in explaining it that simple. Now that made me think that I’m sure you would have explained app design and web design with the same passion and care and I’m on my way to buy your books. A great lesson that I learnt this morning. Thank you for that.

  • angelp1ay

    You didn’t make 200% *more* profit. You made 100% *more* profit.
    You made 200% of what you might have otherwise made.

  • http://passthesourcream.com Bradley Charbonneau

    Thank you very much for taking the time to post all of your experiences here–complete with very cool graphics! The beer icons were a little distracting as even as simple as they are, I’m ready for a brew … a premium brew!

    This really helps me rethink a future product where I’ve been back and forth about how to price it and I’ll now go for the 3-price model. Convinced!

  • http://www.littlekiddies.com.au Dave

    Hi Nathan – thanks for a great article. It’s a great demonstration of pricing theory.
    Good luck with your book.

  • http://sidengo.com Gabriel

    Hi Nathan, very good post!

    I would also add to your conclusion that, it was not necessarily the multiple price points that made you make more money, it was the fact that you gave more VALUE in the second and third packages.

    The next thought question would be this: What if you had offered only the third package but at the average price of the three ($93) ? You would have had less volume but maybe more revenue. Just a thought.

    Best!
    Gabriel

  • http://email-marketing-tips.com Harvey M.

    Great post. Pricing, to me, is all about psychology. Just make sure you’re not charging too much.

  • http://www.discovershareinspire.com Rachel Denning

    This is great, I’m going to implement it with my current products. Thanks!

  • http://Www.garybury.com Gary Bury

    Interesting, but a thought. How much more would you have sold by making your offer clearer and easier to understand? What I mean is, there are plenty of studies that demonstrate consumers struggle to make choices, and end up not buying at all.

  • Gabor Javorszky

    Hi Nathan,

    So here’s my question: You say your product is your ebook, and you have addons, to enable price bracketing (or so it seems). Obviously all of those addons you had to create, or get deals from other people’s products (cross-sell). What if I told you that your actual product is everything, the $169 option, and all the other options are just dumbed down versions for the price conscious?

    For me, this sort of thinking is skewed a bit. I have an X (let this be an e-product of my choice). I read your article, and think: “AWESOME, let’s do price bracketing, to allow for all the other types of people to pay me differently.” And shortly after: “Crap. All I have is X. I can’t charge 3 different prices for the same X. Now I need to walk away and produce Y and Z, so I can offer X for $60, X+Y for $120 and X+Y+Z for $180.”

    But! If I have X, I can charge $180 for X. And $120 for X-Y and $60 for X-Y-Z.

    Discuss!

  • http://liveditor.com/ Edwin Yip | dev of LIVEditor

    You just stopped me from making the single price point mistake for my new software – LIVEditor (A html/css code editor that’ll make coding the web much much easier) ;)

  • http://www.ashotofadrenaline.net Todd Kuslikis

    This came at the right time! I am launching a new bodyweight exercise program for January and you persuaded me to come up with different pricing options.

    I have an exercise program, nutrition program and videos. Instead of offering one package price, I think I’ll break it up and offer several different options.

  • http://www.moniquelarue.wordpress.com Monique LaRue

    Nathan, great article. I will be using these principles when I launch my new book Spring 2013. Thanks for the nuggets! Great tweet and FB repost — Thanks,

  • Jordan

    Great article – my wish is for a pt 2 comparing these sales with another set at a lower price point and distributed through a platform like Amazon/Kindle.

  • http://www.dradept.com David

    Great insight, excellent article especially giving actual figures which always helps in the real world.

    You did not mention the Goldilocks effect, which seems to be shown to work here in your example; this is where you have 3 prices and the middle item is the one people mostly go for; This ones too hot (too expensive), too cold (too cheap) just right (the middle option)!

  • http://pjrvs.com paul

    thank you for this! it gives me an idea to try with my next book. the insight is much appreciated for me (a self-publisher, entrepreneur).

  • http://katemats.com Kate Matsudaira

    Thanks for sharing this insightful post on pricing. I loved seeing how adding multiple options for one product impacts sales, conversion, and revenue. This is a great look at how applied psychology can improve online marketing.

  • http://wpthemesdaily.com Robert

    I have done the same thing with my WordPress related product and the revenue increases about 20% :) I would say it WORKED. 100%

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  • http://www.fiverr.com/focusedlife Carlos Rosario

    Nathan,
    Very cool illustration of how Stratifying works in a real world application. In the car world, where I spent 6 years learning sales psychology, I remember clearly one of my mentors saying “There’s an ass for every seat…” but you have to let them know it exists so that means making the option available to them and let them decide on whether or not to purchase. Thanks for this brilliant post.

  • http://perfectearningtips.com igbalaye Olayemi

    This is very interesting and helpful article Nathan Barry. at least i have learn a very important thing about this article on how to handle pricing problem so as to afford any dangerous mistakes. thanks for sharing this article

  • http://www.clickdesk.com/ Sudarshan

    Great post, thanks for the insights. The major pricing problem in the industry right now, especially SaaS, is undervaluing the product to have a competitive edge. You’ve clearly shown how a pricing strategy should be designed on value, thanks for sharing.

  • http://ciriongroup.com Justin Westbrooks

    Thanks, Nathan! My young startup is working on our first ebook as well as our first web-based software product – and pricing is SUCH a huge component of our conversation right now. From everything we’ve read, you’re spot on – so thanks for the affirmation! Best of luck!

  • Michael

    Very nice article, I will be sure to make different price points on service packages for my new consulting firm.

    I just want to point out a small error, packing different price points increased your revenue by over 100% not over 200%. Since $15,047 is your baseline, it is 100%. now $30,697/$15,047 is 2.04 or 204%, which means you increased your revenue by 104% by packing different price points.

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  • http://micahalcorn.com Micah Alcorn

    Thanks for the simple, clear examples. I was planning to launch a single-price web app next week. You also caused me to think seriously about info products.

  • http://www.red-slice.com Maria Ross

    Thank you SO much for this timely article, Nathan, as I just launched a digital self-study Brand Bootcamp to help solopreneurs craft their brand and messaging strategy and am going to be adding other options.

    Could you (or anyone on this reply thread) address the controversial issue of ending your price in off-numbers like 99, 297 or 449 or the like? I actually hate this, and would prefer simple, straightforward round numbers, but I’m sure people do this for a reason: it must work. What is the thinking/rationale on this, if you wouldn’t mind sharing?

    • http://www.foodtruckbusinesshq.com Denny Moody

      Hey Maria, first of all, congrats on your product launch. Hope it’s going well.

      So, to answer your question, what you’ve described is known in marketing as “Odd Pricing.” This tactic is very successful simply because in our subconscious, $99 is much less than $100. Even though we know that there is only a dollar difference between $99 and $100, we are much more likely to buy the $99 dollar product. So Nathan has each of his prices ending in “9″ because it seems significantly less than if it was just a dollar more.

      Hope that helps!
      - Denny

  • http://www.foodtruckbusinesshq.com Denny Moody

    Awesome information, Nathan. Congrats on your success!

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  • http://www.lionsorbetshop.com Stephen Irvine

    Found my way here from Brendan Dunn’s emailer. Very useful article and incredibly good advice. Thanks. Will certainly look to use this technique in future projects

    great work

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  • http://www.webcognoscere.com Miguel Ribeiro

    Hi Nathan,

    Thanks for the awesome post.

    I am releasing a product in the middle of February and found this article has helped me hugely in pricing and ‘packaging’ my product into the different brackets.

    One question I have for you is this;
    I too will have 3 price points / packages and I want to emphasize the middle option as the most ‘popular’ option (I see you’ve highlighted your middle one too).

    My thinking behind this is that the people that would go for the most expensive option are going to go for it regardless.
    The ones that are on the fence will be persuaded by seeing that the middle one is the most popular (social incentive) and then the ones that genuinely can’t afford the most expensive or the middle one will go for the cheapest one seeing it is only 1 step below the most popular.

    So I am trying to include everyone and not making the low end customers feel that they are excluded from a good product. Thus getting more customers :)

    What do you and your followers think of this as a strategy?

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  • http://www.findinginnovation.com James Bullis

    Good stuff. Just taking a look from Brendan’s email. I never thought giving prospects a choice to pay more could result in more income. Very interesting. I’ll need to look at how I can package my services.

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  • http://www.discoverwithandy.com Andy

    Great post guys! I’ve been toying with the idea of making my own ebook lately, and the pricing has really had me stumped… though I suppose I shouldn’t even worry about that until I make my product ;)

    Thanks for the great advice – I’ll be sure to let you know if I get a chance to use it!

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  • http://Ismsmessages.net Micky

    Love it. People seldom realize the complexity involved in setting up a pricing schedule. Many variables plus a little intuition.

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  • http://www.moderntwistmarketing.com Melissa Wood

    Great article, I like how you used solid numbers to back up your point. I can definitely see how this could be beneficial for some products.

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  • http://about.me/ryanjrhoades Ryan Rhoades

    Thanks guys this is awesome. Printing it out for reference.

Up Next:

Setting Prices, Raising Rates & Getting Paid What You’re Worth (FS041)

You’d be amazed what I can pull out of Caleb whilst getting saucy about his wife’s flexible packages… There’s a lot to learn on the road from “that’s ok, you don’t have to pay me” to “I know what I’m worth and you can’t afford me.”

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