Many people think that if they have a product and want to increase sales of that product, they should lower the price. Of course this is a strategy like any other, has its advantages and disadvantages but it certainly has its consequences.
If you have a high value product, then the price should be associated with this value.
How do we set the right value for a product?
It is typical to think in terms of cost and margin. The product cost me 10, I put a margin of 10 and then I get a product of 20. In this case I put 100% margin and it’s a simple way to calculate a selling price, from a cost price plus a margin.
But, with the market value of people and the value of products, we are not talking of cost price and selling price, we are talking of perceived value. So if you get your product, your person or your services to be perceived by your audience as an incredibly high value, you can earn a fortune. Because what gives value to what you have is not you, but your market. So you need to create a solid foundation of relationship with your audience, credibility and find solutions to the desire of your audience and these are the things that your audience values.
The theory of low price really is too weak a theory that you should eliminate from your daily practice in your Personal Marketing. The low price is not equivalent to more success or more sales but is usually equivalent to a drop in your credibility.
So think about that when thinking about lowering the price of your products or services, whether on the Internet or elsewhere.