Internet Marketing Tycoon

**WillB** · 02-12-2007, 06:35 PM

When it comes to pricing a product, do you aim high or go for larger
sales volume by pricing low?

Also, when you're buying, do you prefer to pay more because you're
likely to be getting a better quality product?

I am having a conundrum with a product of mine.. I'm thinking of
lowering the price, and wanted some of your thoughts

**colbyt** · 02-12-2007, 07:32 PM

1. It depends on the product and the potential market. Mass appeal lower price may be better. Limited market higher price may be better.

2. Price does not = quality. Once I identify a product I want I shop for price unless the price appears to to have a strong price/value relationship to me.

**EngAdven** · 02-12-2007, 07:34 PM

Are you talking about software products?
In which case you should charge as much as you can get away with. This normally means how much your marketing spend will generate.
From my experience I'd say don't spend money on marketing unless you're huge because you won't get it back.
You can experiment by changing your prices to see what happens but there is a common theme that seems to work these days.
Have one free version. This is your marketing tool that you give away a goes to the people who would never pay anyway. In return for the free sofware you get lots of feedback links or brand awareness. You can then have one or more other versions that you price by how much benefit the users gets. Companies spend other people's money so don't care anyway but if it saves people time then that's how much it's worth.

**trichnosis** · 02-12-2007, 08:40 PM

there is no exact answer for your question . potential market , quality , etc . there are so many criteria for this

**bob** · 02-13-2007, 10:33 AM

I would suggest keep your price competitive neither lower and not much higher side.

**stOx** · 02-14-2007, 10:34 PM

Lower is best. I once knew a business man in London, He made millions from slot machines, When i asked him what the secret of making money was he said "take £1 from a million people", Which i took to mean aim to take a little from a lot of people rather than a lot from a few people.

Plus, On the net, If you have a rediculously low price you will generate a lot more conversation about the product and increase it's viral potential.

**sheena** · 02-15-2007, 05:24 AM

It depends on the products you are selling. We need to choose quality products and with low price. But most of the quality products has high price.
I think you need to choose your potential market if it is high to low class.
You need to consider also the target user or audience when selling your
products or services.

**SeemsOk** · 02-15-2007, 05:31 AM

First of all your business should make a profit for you. And your prices sould be well-founded. So you have to advertise high quality (not cheap prices).

**markov** · 02-15-2007, 06:02 AM

It entirely depends on numerous factors like competition, quality, reach/affordability, uniqueness., etc.

**InfTekHosting** · 02-15-2007, 12:42 PM

It's supply and demand economics. If you have high demand for a product, then raise the price. If you have low demand for a product then lower the price.