Why do we butcher our profits Online?
(c) Paul Barrs 2002
Now this makes me angry!
Why do we butcher our profits when selling Online?
I can't stand it.
How many times I've seen what looks to be a quality product
selling for the stupid price of $9.95 or some great package of
products for $19.95 - I cannot count.
Are the creators of such products insane?
Are they scared that you'll not make any sales at all?
Just this morning while following posts on a message forum I
came across yet another site that sells a terrific range of info
products - each which can be bought separately. But this
webmaster had bundled them together and was selling them for
less than one fifth of what he could get if sold separately.
Why doesn't he at least triple his price and sell them for
minimum half for the package.
Over the past two months I've made numerous International phone
calls to talk with other net business owners who are also
feeling frustrated.
Because of the nut-crackers out there who butcher prices, we all
are suffering. Think about it people - let's look at the math.
Let's use a product example of an incredible eBook called
"Widgets Unlimited" (yes it's fictional)
It's easily worth $150 - this is hot and has the references to
go with it.
However, the webmaster sells it (or a re seller ever worse) for
the all time low price of $14.95 (and don't laugh - this
happens)
He (or she for the ladies) sells 500 copies in the first month.
$14.95 x 500 = $7,475.00
Now that's not bad, we'd all like to be doing that right?
But let's assume that the sales copy is great, the book is
fantastic, people are raving about it all over the net.
So the price becomes $49 and he (or she - although it's usually
guys that do this stupid thing) only sells half the volume.
$49.00 x 250 = $12,250.00
That's fewer products for more income. Less customer returns (if
any), less download problems, less browser based problems etc.
Win win.
How about if the owner of the book did the right thing in the
first place and sold it for $99.00.
But understanding that the price is higher, he only sells one
third of the original volume. $99.00 x 166 units = $16,434.00
Can you see where this is going?
======Side Note:======
Hey, We all know the argument "But what if because it's cheaper
more people buy? Surely the volume will make the extra profit?"
OK, let's take a look at it.
At $99.00 you sell 166 units for $16,434.00
So using the original price at $14.95 you'll need to sell 1,100
of them to make the same amount of money.
Now, unless you're a top market with substantial previous
experience, that isn't going to happen.
And if you are a top marketer with the experience to sell 1,000+
books in this fictional month, then with your credibility,
people will still pay at least $37.00 for your book which would
be $40,700 for the same amount of work
======End Note:======
For goodness sake owners, authors and writers - stop shooting
yourself in the foot!
And for those of you who sell resale rights products (stop
trying to "give it all away" - you are the one loosing money!
And for those of you who create and sell resale rights products
- PLEASE sell by licence to a profitable price marketplace.
Don't let people butcher and degrade your work by selling your
$99.00 product for $14.94 - it's hurting you as well as us.
Please.
Over the past twelve months I've increased the access to my
training site four times. Originally it was $49.00 (I fell into
the trap). Now it's over $300.00. Guess what, I have more people
register and join now than I did at the lower price, but even if
I didn't it would still be worthwhile.
You can do the same - just believe in your products and
services.
Between us, we can bring some profit back into the Online
Market.