Profitable Pricing Strategies PLR Ebook

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The one time pricing model is as simple as it gets. You simply charge a set price for your product. This works best for traditional products in traditional markets where other pricing models just don’t seem to work.

When using this pricing model, it’s important to get your price point right.

If you’re not using any special pricing model to increase conversions, then you price point must be right on target.

In this case, testing really comes in handy. Since you must zero in on the perfect price for your product, it’s going to be more critical than ever to test and track results.

Benefits of One Time

1. Traditional markets may respond better to this pricing model than to unusual ones they may not understand or they may be wary of.

2. It doesn’t require any special software to set up. Just use any standard billing system.

Drawbacks of One Time

1. Doesn’t offer any potential conversion increases on its own.

Testing & Tracking

Testing and tracking is incredibly important when trying to determine the right price for your market. Never assume that because your product seems to be selling relatively well that you have hit the right price point, because a price change could easily increase your conversions considerably.

This is why it’s so important to test multiple price points, and even pricing models.

The easiest way to test and track is through the use of an A/B split testing program. If you install this type of script on your server, you can send all of your customers through it in order to find out which price point or pricing model works best for your product.

A/B split testing software is beneficial for many other areas, too. You can use the same software to test things such as your website’s design, conversions, sales copy and more.

You can find some useful split testing systems in the resources section at the end of the report.

Gap Analysis

Gap analysis is a method of comparing the way your company or product is currently performing versus its potential performance. It may sound like a bunch of hokey management mumbo-jumbo, but the fact is, gap analysis can have a massive impact on profits.

Gap analysis works by taking a look at the things you are currently doing with your business in order to show you ways you could improve. This could be applied to all sorts of areas, including how well you’re allocating resources, how your marketing is performing, how well employees are functioning and more. And yes, pricing is one of those metrics.

The basic principle of gap analysis that applies to pricing is known as the product gap, which is sometimes referred to as the segment or the positioning gap. This particular gap helps identify whether your product might be excluded from part of your potential market because of some of the characteristics of your product. Price is one of those characteristics.

There is a simple step-by-step process you can use to perform gap analysis on your business. I’m going to give you the process, as well as how to apply each step of the process to your product’s pricing.

1. Identify the current process - In this case, you simply identify your current pricing model and price point.

2. Identify your current status - With regards to pricing, this would be your current conversion rate as well as how much you’re currently marketing in income/profit.

3. Identify your target status or objective - Obviously, with pricing this would be to increase income/profit.

4. Identify the method to find the gap - Before you can identify a specific gap, you need to decide how to figure out what is causing your market gap. Perhaps the best way to do this is to ask people who bought your product what made them decide to buy, and to ask those who didn’t why they chose not to.

Failing that, doing some general market research will be marginally to moderately helpful, depending on your situation.

5. Identify the gap - In this step, you must figure out where the gap is in the market. Are you failing to reach a segment of the market due to using the wrong pricing model or the wrong price point? You must figure out the most likely culprit before you proceed.

Again, this can be done through market research, testing & tracking, interviewing potential customers or other methods.

6. Develop your plan to fill the gap - After you’ve identified the most likely culprit of your gap, it’s time to fill it. This part is relatively simple, but may require further testing and tracking in order to figure out which method of filling the gap will be most effective.

7. Develop the process to fill the gap - Finally, it’s time to develop your plan of action to support your initial plan. You know what needs to be done; now you just need to develop the plan in more detail, outlining each step and setting requirements for timing, testing, etc.

Remember that you much be very objective in your analysis of your product in order for gap analysis to work.

Objectivity means putting your own ego aside and really figuring out where you may be failing.

If you find this difficult, and many people do, then you might need to seek the aid of an outside company to help you conduct this type of research.

Conclusion

Pricing isn’t as simple as just setting a price and waiting for people to buy. There is a lot of psychology involved, and generally a lot of testing, tracking and tweaking is involved.

Don’t forget that you must test both price point and pricing model in order to reach the most effective balance and increase your conversions. You could try multiple price points with each pricing model before arriving at the best conversion rate.

Start by researching the competition’s features and pricing and move on from there. Before long, you’ll find the perfect pricing structure for your product, and you’ll watch your sales skyrocket as a result.

There’s nothing like thinking you’ve done everything you can to make your product sell and then discovering the one thing that will send your sales through the roof! Using the tips found in this report, you’ll be on your way to experiencing that in no time!

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