This article will explain how the actual price of a product can be a marketing tool and also how it can reduce sales immediately by having too low of a price.
Pricing theory has been around for a long time.
There are university professors that specialize in pricing theory alone.
Here we are going to discuss how the price of your product is helping or hurting your sales, and how you can use the price to your advantage.
Pricing your product is one of your marketing tools.
Companies have been using price alone to drive up the sales of luxury items for years.
If a Rolls Royce created a model that you could buy for $9,000 don't you think it would hurt their image? Absolutely it would.
Companies use price to their advantage all the time.
Diamonds don't have much worth except that we have placed a huge value on these precious rocks.
You could have two of the same watch from the same factory, but if one was priced at $5,000 and the other was priced at $12.
95, you would immediately think that one was more prestigious than the other if ll other characteristics had not changed.
This is where the copywriter has to come in.
You have to build value of the product to justify the price tag.
It does not matter how much you paid to create the product, what matters is the perceived value.
Price testing is a great way to adjust your sales numbers.
If you are having a slow month, try testing out a few different prices.
Sometimes by doubling or tripling the price of an item, you can increase sales dramatically.
This theory works the other way as well.
There is a market saturation limit for the price a certain product.
If your sales are floundering and you can't build up the value any more, then you may need to lower the price to increase sales.
Testing with pricing will allow you to find the best price for a particular market.