The Value Of Your Product And How To Price Your Product!

If your product is re-usable and it saves a person an hour of time each time they use it, then it's easily worth whatever that person makes in an hour.
If your product is a one-time use, how much time will it save the person? Again you can price it at whatever the consumer makes an hour.
If you're selling to a business, ask yourself what it worth is to the business per hour.
Here your price can go up substantially because a per hour cost to a business is much higher than a per person cost.
If your product makes a person feel good, you can charge a premium.
Why? Because people like to have good feelings.
Whenever you can makes someone feel good you can charge more.
That's why coffee shops can sell coffee at $5 a cup, when you can make the same thing at home for $.
50 or less.
The person who bought the coffee feels good because they now have more energy to get through the day.
Good marketing is the reason why coffee shops can sell a $5 cup of coffee and make you feel really good about handing over the $5 in exchange for some good feelings.
Remember this in order for your business to turn a profit you should sell your stuff at least 60% more than it cost you to build or get yourself.
60% is about the bare minimum any one should go.
Anything below 60% markup, you will most likely lose money on.
Think of it this way.
What happens if the first time around the product doesn't work properly and you have to send another one out to the customer.
Right there you lost your 50% markup and are now in the red because you have to take the time to deal with the customer, with the shipping, and with all the other minor details.
That is not including if you are paying someone else to handled the phone calls and reshipping the product.
When you deal with things with a higher markup it just makes your life easier.
Ask yourself these simple questions.
How much money does my prospect make an hour? What type of feelings does my product make my customer feel? How can my marketing make my prospect feel better so I can get more money for the products I sell? So how do you find out how much a person is an hour? Though Customer exploration.
Customer exploration will help you pin point your customers and based off your research you will be able to know how much your customers make an hour and more.
Customer exploration will also help you pin point where your customer hang out at so you can put advertisements in front of them.
Also Customer exploration will help you find out what really makes your customer feel good so you can charge a premium.
Doing customer exploration is more than just knowing if they are male or female and their ages.
Customer exploration goes deep into what the prospects wants and needs are.
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