How To Value Your ProductLance Tamashiro
One of the questions that I have been getting a lot lately is from people that want to know how it is that you value your online or your digital products and/or courses. Now this is a really good question, and the reason why this question sort of came about is that I was talking to a few people about the price drop.
Now maybe you guys have seen these before, they are really famous on infomercials, you see them on a lot of sales pages, and you see them on a lot of webinars. Now what most people associate the price drop with are phrasing like this right - but wait, don't do it now, I'm still not done, I can do even better.
You may have heard all of these phrases and a lot of people it rubs the wrong way. But a funny thing happens, is that some people it makes them get very- very excited.
I'm not here to tell you whether or not the price drop is good or bad or wrong or right, what I am here to tell you is why it's a necessity inside of your marketing. And let me tell you what I mean ... in order to first of all value your product or value your packages, it's absolutely necessary that you show people what they are actually getting inside of your course. When I say that this is the actual listing of what each module is or CD is or each video is.
Wouldn't you agree that when you're purchasing something you want to know what it all is, but then you want a clear concise view of everything that you're actually getting.
For a person to sell a product online, it's very-very important that they list all of those out. Now along with listing everything out, you have to put a price value associated with each particular piece of your product. Now remember, you're trying to justify what the value of your product is, you are trying to explain it to somebody. How do you go about deciding what each of your modules or each of your videos or what your report is worth?
What I like to do is there is a couple of things, first of all I look at what the market place in that particular niche, what it is selling products for and I try to get an idea of what they're delivering for that. Now when I say what they're delivering, I don't mean that they are delivering 10 videos and charging $997 that you need to make a course with 10 videos. But what I am talking about is the result that people will get if they follow your training or buy your product. So it's different to say here's 10 hours of video on list-building and that cost $997 versus I'm going to show you how to get 10,000 new subscribers on your list.
There's a big difference. Once you are starting to list out what is actually in your product and your comparing it with what the market place has, it becomes really easy to evaluate the result that people are going to get from you versus what they are already buying in the market place.
The second thing that I do when I am trying to value my products is I think about ... well, when I used to work in corporate America what my salary was, and basically what I got paid by the hour, and then I thought about how long it took me to learn some of the things that I can now teach. Literally there are systems that Robert and I have that when I got started would take me one or two full weeks in order to implement something, and now I can do that with my new system in 10/15 minutes.
Is it different information, it's the same result but the way that you get there is different. And so for me, when I value my products it's when I was looking for it what would I have paid in order to get that result and I base that on what, again what I had paid other people previously.
What I am looking at is I want to provide the best value for the price in the entire market space. Now, I told you at the beginning that the price drop becomes inevitable - now why is that? Well what we have just done is we have gone through our products or our reports or our courses and we've listed out what the value on each component of it is. But now how do you add all of those numbers up and come up with a number that's not the price that you want to sell your product for.
Well you want to deliver what - more value than what the price of your product is. That means by necessity that's why you see all of these price drops. It happens because there is no way to go from look I have proven to you that all of my stuff is worth this, it's worth $997 but it's yours today for $97, you need to make a justification about why you're bringing down the price ... otherwise what - well it looks suspicious to everybody.
If you think about the entire sales process, and don't isolate the parts that you may or may not like. For example, some people don't like when people do the introduction of their products, some people don't like the way that certain people talk about who they are and the great results they've gotten with their products, some people don't like the price stack, showing what's inside of the offer. And some people don't like the price drop, but if you take all of those together in one entire system, well then all of it makes sense.
Now there is a lot of psychology that goes on behind the scenes of why that helps people to go through the buying process, but if you look at it as I am showing you what my product is, I am explaining the results that you're going to get, here are the components of it listed out, and now here is the price that it makes sense as to why you have the price drop. And hopefully, now you can see why it is so effective and why you need to use it in your own marketing.
What I want you to do right now is at the bottom of this video, there is a place for you to leave a comment. Let me know how you value your products and what you think about the different components of the sales and marketing process.
Thank you very much and have a great day!