Ever wondered how I, as a pricing expert, price my own products?
I recently had the idea to make a YouTube video about my own process of pricing digital products. Why? Because, honestly, pricing is one of the most challenging (and rewarding!) parts of launching something new, even for someone like me, whose superpower is pricing 😉.
The video is still in the stage "planning", but here's a teaser and some practical insights you can apply immediately.
Here are my key steps to pricing my own products:
Market entry strategy
Who’s already buying products like yours? Before deciding on a price, I researched the competition. What are others charging, and what’s their offering? Understanding the market was my first step toward finding a price point. I also decided to enter the market with a low-ticket item, as it enables a more automated sales process. High-ticket items typically require more personal sales efforts.
Customer Willingness to Pay
What’s your audience willing to pay? This is the most important question to answer. Understanding your customers' willingness to pay helps you set a price that reflects the value they place on your product, rather than simply covering your costs. Pricing based solely on costs can leave money on the table if customers value your offering more, or it can lead to lost opportunities if the price feels too high for the perceived value.
Iterate and optimize
I launched my first course at what I thought was the “sweet spot” and I will make adjustments based on feedback over time. Flexibility is key!
To everyone out there pricing new products or launching a completely unknown company, here’s my biggest tip for you: Start by understanding your customers, not your competitors. The closer you are to their needs, the easier it becomes to set a price they’re happy to pay.
I’ll share more on this topic in my upcoming content, including that YouTube video!
Are you ready to refine the way you approach pricing? Explore our online courses for advanced tools and techniques to streamline pricing and increase profitability. We help you to make better pricing decisions.
Ps. Thinking About Starting an Online Business?
We recommend Kajabi for managing everything in our online pricing business.
Why Kajabi?
👉 All-in-one platform for website, products, marketing, and payments
👉 Focus on creating, not managing tools
👉 Work smarter, not harder
With our partner link, you get a 30-day trial (instead of the standard 14 days). Plus, we’ll include a free pricing course: "How To Price Online Courses."
