Why Do
We Butcher Our Online Profits?
by Paul Barrs
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 reseller - even 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 marketer 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 losing 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.
Paul Barrs has
compiled a new Free eBook titled "Make More Profit". In it
you will find articles from some of the Net's Top eBusiness people,
showing you how to Make More Profit in your Internet Business. Download
it Free from: http://www.paulbarrs.com/profit.htm
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