Pricing Your Product or Service

When you just starting out in internet business and marketing, a common question is what you should charge for the product for product or service that you are offering. There really is no easy answer to this question. What you will charge is dependent on the product or service itself, your niche market, and the competition you have. You also have to consider the perceived value of what you are selling in the eyes of consumers. If they see very little value in the product or service you have, they will not pay the high-dollar price you may want to charge.

First of all, if you offer your customers too many choices for products that are similar to each other, you are less likely to see a purchase made. Narrow down the choices offered to the highest quality products or services in order to offer the value your customers want. A rule of thumb is to offer no more than three choices that are similar at different price ranges and quality. For instance, a product that is basic, another that is deluxe, and a third that is of premium quality. Each one will have pricing that graduates up to the premium price, and each one offering more value in what is offered.

In considering what you are charging for your product or service, try not to lock the customer into a long-term contract that they may not want. Offer a trial of your service for a month, or a money-back guarantee on your product that shows the customer that your product is top-notch and that there is no long-term commitment. A lot of people are leery of products offered on the internet due to scammers and phishing artists, so make sure you are searchable and credible. Also, setting your price too high or too low for what you are offering can send red flags. Be careful in what you ask for.

Please post your tips on product pricing here, so everyone has the guidelines they need to keep their internet business lucrative.