A few weeks ago, one of our students had come to our offices, and was showing me his new business model on one of our whiteboards. He listed his plans, his products and his price points.
The first thing I did was add a ?0? to the end of all of his product price points. He nervously laughed and told me, ?You can tell how advanced a marketer is by how much they dare to charge. My wife wanted me to charge half of my initial prices.? He was afraid that no one would buy at those price points, but that he trusted me and he's test it out.
He launched his site last week, and a few days later I got an email from him announcing that he had his first $10,000 week!
The moral of this story. Raise your prices!
One of my mentors, Dan Kennedy, said that if you can't be the low price leader in your market, it makes NO sense to be the next cheapest guy in town. If you can't be the lowest, then you should try to be the highest. Become the ?premium? option because there is always a group of people who want to buy at premium prices. And the nice thing is that you will make more money from less people, you'll have less customer support AND have higher quality buyers to work with!
Just look at the airline industry. There's a group of people for every flight who will pay almost twice as much for an airline ticket not so much because the seats are a little bigger, but because they want to fly ?First Class.?
