Download: MP3 (55.9 MB)
Establishing your brand as one of quality enables you to price on the value you’re delivering to your customers. We look at highlighting your unique selling points to distinguish yourself from competitors and break into a higher market where you can demand greater prices. I talk about the limitations and constraints of selling within an external ecosystem and how you can make more money by selling less on your own website.
- 03:49 “Full price and free.”
- 04:23 Free products are often more useful than cheap ones because the attribution of value is retained.
- 07:06 A story from Influence on how accidentally doubling a price caused a failing product to completely sell out.
- Pricing Higher
- 08:59 The problems with pricing like a commodity.
- 10:43 If you price like a commodity, you compete with other commodities. Your price is limited to what everyone else is charging.
- 11:29 However, you can’t just arbitrarily position yourself in a higher end market.
- 12:20 If there is no distinguishing component between your product and the product of a competitor, then there’s no reason for someone to buy from you over a competitor.
- 14:08 When you work hard to set a quality precedent for everything that you do, your loyal customers know that any new product you release will be of high caliber. They will be willing to pay a more premium price because it actually is a premium product. It’s not arbitrarily inflated, but indeed worth the price.
- Starting with the Audience
- 15:39 “What is VALUE?” Value is defined by the customer.
- 16:06 The whole “if you build it they will come thing” is only partially true. If you build what people are looking for, then they most certainly will come—and they’ll pay you for it. Don’t just build a product because you want to, but build it because people are asking for it. Your product should be an answer to that desire.
- 16:27 Focus on the pain points. People buy products because it solves a problem. Essentially, people buy solutions. What problem are you solving for them?
- 19:12 How to find pain points.
- 23:07 You’re in business to make money. That’s not something you should apologize for.
- Raising Prices
- 24:08 “How do you know when to raise prices?”
- 25:29 Example: Looking at how and why WooThemes raised their prices.
- 29:30 “Do you think pricing too low devalues a physical product? The more people who have it the better because of word of mouth, right?”
- 29:57 The usefulness of “at-cost” products (no profit).
- 31:44 Example of at-cost product: Ampersand Keychain.
- 36:07 Why I changed my product prices and incorporated shipping costs.
- On Ecosystems
- 41:01 When you sell within someone else’s ecosystem, you are locked into their pricing model.
- 45:06 Other ecosystems can limit your actualization of a product’s true value.
- 45:36 Yes, you may sell more on other popular platforms, but by selling within your own ecosystem, you can often make more even when you sell less. You also have much greater control over the user experience as a whole.
- 49:53 Using scarcity to sell.
- 51:20 Scarcity can be a very effective catalyst, but the scarcity must be truly legitimate (almost always exclusive to physical products). People see through false scarcity (for instance “limited” digital downloads).
- 52:17 Ultimately, you should strive to intentionally provide value. Yes, it’s a long term investment. Sure you could cut corners, but people notice the details and the little things add up, so don’t neglect them.
Make owning a <your brand here> product actually mean something.
- Influence (Book by Robert B. Cialdini)