Pricing: right concept, wrong approach
There are a lot of links in this e-mail, so read through everything and get what you need to get out of the information, first… and then go back and click on those links that are relevant to you.
For many people, pricing is a serious issue.
You’re concerned about charging (and making) too little… but of course, you’re concerned about charging too much and not getting paid at all, right?
Well, in a minute I’m going to give you a link to an interview I did, that explains the step-by-step process I use to set my own prices, but here’s something you need to be aware of, when thinking about pricing.
There are two ways to make money: on the front-end, and on the back-end.
The front-end of your business is the entry point where your customers first get an opportunity to “meet” you, in the financial sense. Call it the beginning of your funnel.
For example, for me, most of my best customers originally “meet” me by taking the free test-drive of my offline newsletter, which you can find here: http://www.kingofcopy.com/ssnl
Other customers come in through one of two low-priced e-books I offer: either The Science Of Getting Rich at http://www.kingofcopy.com/science or… Scientific Advertising, by one of my all-time favorite copywriters and ad-men, Claude C. Hopkins, at http://www.kingofcopy.com/hopkins
The back-end of your business, however, is a completely different animal entirely. The “back-end” is what you have to sell your customers, after you’ve sold them what you sold them on the front-end.
Often times, this is where the huge profits lie, and in this case, smart entrepreneurs spend time figuring out how to shove as many people as possible into their funnel, so they can make as many back-end sales as possible.
Now some people can, and do, make money in both front and back-end sales. There’s no hard and fast right or wrong way of doing this. It all depends on what kind of business you have and what kind of business you want to have.
But the best way to price your goods and services, isn’t to pick a number up front, it’s to have a few specific strategies.
One is simply to figure out how much profit you need to make — based on whether most of your profits are made on the front end or on the back-end. Take into consideration what it is your total costs are:
Cost to acquire each of your customers (marketing and advertising costs), plus…
Manufacturing cost to produce your actual products, plus…
Taxes (if you can figure this out), plus…
Any fixed costs you have, that you want to allocate towards your products or services (things like rent, salaries, office supplies, and other overhead costs to run your business)
… Then simply figure out how much money you need to make on each item and add this to your costs we just mentioned.
Now as far as strategy goes, listen to this interview I did, and you’ll get loads of other pricing strategies you can use. (Don’t worry, there is nothing to buy on the call. In fact, there is nothing but PURE content for you to use.)
Here’s that interview: http://kingofcopy.com/media/interview/christian/
Tomorrow, I’m going to show you a formula to calculate pricing and it’s impact on your business. For many people, this simple formula will dramatically altar your perception on pricing and on business in general.
Now go sell something, Craig Garber
P.S. This month: one of the most compelling lead generation ads for one of the most forward thinking pop-culture businesses around. In fact, it’s the new “crack” for affluent baby boomers. Test-drive it free and get 15 bonus gifts (watch the video) at http://www.kingofcopy.com/ssnl
Check out all the King’s products at http://www.kingofcopy.com/products
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