How to Find Your Price

Summary

• I always recommend testing and trying different prices to see what happens.
• Pricing bands exist; for example, $27 isn't very different from $29, but $70 feels like another range compared to $65.
• Buyers who say yes to $50 might also say yes to $55 or $59.
• If you notice a drop in conversions, you can adjust by removing one small feature or lowering the price slightly.
• I always go until I go too far, because you won't know your limit unless you push it and see.

Video

How To Take Action

I would suggest implementing a strategy to test different prices for your product or service. This is essential to find the optimal price that maximizes profit.

Start by picking a few different price points and observe how your customers react. For instance, if you're currently selling something for $50, try increasing the price to $55 or $59 and see if your sales remain steady. Buyers who are willing to pay $50 might not be discouraged by a small increase, but you won't know until you test it.

A good way of doing this is to look for pricing bands. If a small change, like moving from $27 to $29, doesn't affect sales much, you know that range still works. However, a jump to $70 might feel like a different category to your customers, so test these differences carefully.

If you ever see a significant drop in sales after a price change, don't panic. You can adjust by either reverting to the previous price or by removing a small feature to justify a lower price. The key is to make incremental changes and closely monitor the impact.

Always push your limits a bit. Keep experimenting until you notice a drop in conversions. This will help you understand how far you can go with your pricing strategy. This approach doesn’t require much cost or time but can significantly increase your business’s profitability.

This method ensures you are maximizing your revenue without alienating your customer base and allows you to make data-driven decisions about your pricing.

Full Transcript

what should I price my thing at let me tell you how you solve this you test you test you try it you see what happens there's no like oh hold on feels like 17 what I will say is that from a psychology perspective there's these bands of pricing that exist that you've probably noticed right like is $27 very different from 29 not really does that same buyer buy at 29 and say no at 31 I don't know but all the people say yes at 50 probably say yes at 55 59 sometimes even 65 once you get into 70 it's like oo that feels like another range right and if you ever do fall off a cliff in terms of like Oh shoot no one's converting and this I just I went too far you can always walk it back by just removing one tiny thing I always go until I go too far cuz how you going to know if I keep making more money I keep going up