How To Price To Make The Most Money

Summary

• I learned a great method to find the perfect price for any product using data, not guesswork.
• Start by asking: "At what price would this be so cheap you wouldn't even believe it works?" Beginners often price too low, making it seem unbelievable.
• Next, ask: "At what price is this so high you wouldn't buy it?" This helps set the upper limit for your customers.
• Then, ask: "At what price would this be a great deal?" This is where the customer thinks it works and sees it as a bargain.
• Lastly, ask: "At what price is this barely in your range but you'd still buy it?" This is usually the sweet spot for maximizing profit.
• Use the answers to plot on a graph, which helps identify the optimal price point for the highest profit and most units sold.

Video

How To Take Action

I would suggest implementing the lessons from the study about finding the perfect price for your product using these simple but powerful questions. This method is low-cost and easy to use, making it perfect for small businesses, entrepreneurs, or anyone focused on personal growth.

First, ask yourself: "At what price would this be so cheap you wouldn't even believe it works?" Beginners often price too low, making the product seem unbelievable. For example, if you’re selling a premium service for $5, it's too low to be taken seriously.

Next, ask: "At what price is this so high you wouldn't buy it?" This question helps you find the upper limit. If your product is $500 and your target customers wouldn’t even consider it, then you know that’s your upper boundary.

Then, ask: "At what price would this be a great deal?" This is where your customer believes it works and sees it as a bargain. For example, if your service feels like a steal at $50, then you know this is an appealing price point.

Finally, ask: "At what price is this barely in your range but you'd still buy it?" This question usually finds the sweet spot for maximizing profit. If your ideal clients would grit their teeth but pay $150, this is often where you make the most profit.

Plotting these answers on a graph helps identify your optimal price point. Use this data, not guesswork, to set your price. This way, you’ll find the highest price with the most units sold, leading to the greatest profitability. It's a straightforward method that anybody can apply with minimal resources.

Full Transcript

two guys ran a research study to figure out how to get the perfect price for any product and they did it by asking four questions and when getting those answers they could plot them on a graph to find the perfect spot where you'd have the highest price with the most number of units sold which is typically where you'll make the most profit the first question you ask is at what price would this be so cheap that you wouldn't even believe this would work and this honestly is where a lot of people who are beginners actually are they price so low that no one actually thinks they could even deliver on the thing they're promising the second question you ask is at what price would this so high you wouldn't even consider buying it this gives you the upper range for that particular customer the next question you ask is at what price would this be a great deal you believe it would work but it would be a bargain and then fourth and last at what price do you think this would barely be in your range but you'd end up buying it anyways and then this one tends to be the price point where you generate the most profit and then by doing that you can select a price not by guesswork but by data that'll make you the most money