Pricing is one of the most important aspects of the marketing mix.  Basically price is the amount a customer pays for a product, which comes from numerous factors. The factors which are in my opinion are the most important are market share, competition, cost and the customer’s perceived value of the product.

The last one (customer’s perceived value of the product) in my opinion is the most important one because people place a value on information. If you can make consumers believe your product is worth a lot of money, then you can charge consumers a lot for your product. However, if they think your product isn’t worth much and you are selling your product at a cost above their perceived value then obviously they won’t purchase your product. Finally if you are pricing to cheaply consumers can think the quality is poor in the product you are providing so again they wont purchase your product.

Here are some prices that are fairly common for products to be purchased online i.e memberships, ebooks, scripts etc. (Note: as people sell at different prices, you should assume a decent leverage between each price mentioned below for example $10 would be anything from $0 - $17 in the $10 category.)

Selling a $10 product!

Basically your selling a product that’s not worth much in yours or the consumers eyes. Hence its price tag. This is basically seen as a throw away product.

Selling a $25 product!

In my opinion this price is a hard one to master. Why? Well because, to the right audience it can make you a fortune. However, to another audience they might not even consider it so you will struggle to make even one sale, if this is the case I would raise your price to $50 as not only do you make more profit but some audiences will value it more and purchase it.

Selling a $50 product!

$50 is a price that isn’t always going to get people to pay out. However, if they feel it will benefit them, then people will pay for it. Example of this pricing structure include improving cooking because, if your selling one of those products then you will receive purchases for your product as its benefiting the consumer

Selling a $100 product!

Well this means your going to have to sell something to a market that really needs your product. There are two markets that come to my mind when this pricing comes to mind which are the IM crowd and Golfers.

Selling a $1000 product!

Firstly you need a product actually worth $1000. Then you need to do a decent pre-launch of the product as well as being recognized in the market your appealing too.

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