Welcome to the psychology of pricing section. Here, we'll be talking about pricing tactics and strategies that you can use to sell more of your products. Before I go any further, I would ask you to remember that there is a difference between traditional pricing in digital pricing by traditional, I mean physical products. Regardless of what kind of products you sell digital or physical, you will find this section incredibly helpful. One of the things I love in the digital world is that I can create a digital product such as an online course mobile app, or web based software in the cost of duplication in distribution is very, very low. In some cases, there is no cost involved whatsoever.

And not concerned with shipping costs, storage costs, materials, waste, etc. It just doesn't apply to me. It's one thing to Sell CDs with 12 songs inside and quite another to sell these 12 songs digitally. In the first case, you need to pay for the CD disc itself, you need to pay for the cover as well. shipping cost is also involved depending on your selling strategy because it might be you who pays for the shipping, or it might be the customer who base. Whereas in the second case, you can duplicate the product digitally for free.

There is no difference in terms of expenses when you sell to 10 people or 1000 people. This is the difference between traditional and digital pricing. And now I want to give you directions on how to price your digital products. People tend to make pricing over complicated, but they like the concept of simplicity. And I'm a strong believer in the power of asking the right questions, psychologically plays an important role here because as you can guess by yourself It's the perceived value that matters when people make a buying decision. It's the perceived value that matters when people make a buying decision.

Let's do a simple exercise. Now, I want you to imagine you or your prospect right now. Would you pay the price you charge for your product? Does it seem too high or too low? If it is why, please think this is very important. Would you pay the price you charge for your product?

And don't say Vladimir, I'm biased. That's my product after all. Don't think from your perspective. Think from your customers, your prospects perspective? You know the features and benefits the product will bring? How do you feel about the price?

I really believe that if you take this question seriously, the answer will be a great starting point of pricing your product or service. The key to successful Pricing can be found in the quality of your product. The key to successful pricing can be found in the quality of your product. Now, I want you to consider four scenarios. Number one, you charge a certain price, but the quality of your product is low. Number two, you charge a low price, but the quality of your product is decent for that price.

You charge a certain price, and the quality is much higher than that price. And number four, you charge a high price, but the quality of your product is superior. By the way, these are pricing strategies. And my question is, which one would you choose? If you want to achieve market leadership? I bet you would go with the fourth strategy.

You charge a high price but the quality of your product is superior. The problem I see all over is that marketers often Over promise and under deliver. That's not sustainable. Yes, you might close more sales. But in the long run, this is not your strategy because that's the first pricing strategy. They charge a certain price, but the quality of their product is too low for that price.

In other words, they are overcharging. Listen, this is not your strategy. Strategy number three is not a good fit for you. Also, if you provide high quality products, but you charge low, you're running a huge risk here, because people associate a low price with low quality. That's it. So if you aren't doing strategy number three right now, you might be devaluing your own product.

And the purpose of this course is quite the opposite. Therefore, my advice to you is to go with strategy number two, you charge a certain price, but the quality of your product is decent for that price, or strategy number four, you charge a higher price. But the quality of your product is superior. Alright, time to recap, there is a difference in pricing digital products versus physical products. perceived value plays even more important role when you price digital products. A good starting point to price your digital products would be pretending you're your prospect and asking questions.

Would they pay that price? Is it too low or too high? Why? The key to successful pricing can be found in the quality of your product. Generally, there are four pricing strategies. You charge a certain price but the quality of your product is low.

You charge a low price and the quality of your product is decent for that price. You charge a certain price and the quality is much higher than that price. You charge a high price but the quality of your product is superior. My advice is to go with strategy Number two, and strategy number four. Thank you for watching and stay purposeful