Justifying price of information products -- any suggestions?

[Tara Reed]

I recently released an eBook, How to Get Started in Art Licensing. My first inclination was to price it at $47 but I got feedback that it should be higher when you look at the information. So I priced it at $67, on sale for $47 for the first 2 weeks. After that I'll be in the bonus game.

I got this email today:
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Sorry I've not gotten back to you regarding your explanation about your book. I really appreciate all that you wrote on the forum. The book I already have is Art Licensing 101, so I'm wondering if you could tell me how I would benefit from your book, as well. I guess it just seems like $47 is a bit of a steep price, which is why I'm hesitating to buy. I hope that this doesn't upset you that I've written this but I rarely pay that much for a book. I know you have the 60 day refund, but I hate doing that to someone, especially someone who is an artist.

Thanks for listening, and again, I hope you're not offended by my comments. I just try to watch our spending, and this is way more than I'd pay if I walked into Borders.
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This is how I replied:
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I completely understand your questions -- don't worry! Yes, $47 is more than you would pay for a book at a bookstore. Most information products, like digital books, are more -- the distribution is different and the way they work are different.

First, the time it takes to get a book through traditional publishing and onto shelves can make the information less up to date than a digital product. It is also a lot harder to find a publisher to commit -- so with digital products, you can get information from people that you might not have access to through the traditional route.

I don't have Art Licensing 101 so I can't do a really good comparison for you. What I can tell you is the feedback on my book is that it is very practical information that you can take and implement. There are also 15 links to websites that you can click and *poof* you are on the internet where you want to go. (I just think that is so cool!)

If you compare the price of the book to an hour of personal coaching, that couldn't cover this much, it's a steal. (coaching is $125-$300+ in our industry)

I'm not sure what else to say but I would recommend you get the book and if you don't think the value is there, just tell me and I'll give you a refund. I completely understand budgets and how hard it is to decide how to spend your money -- I still make these decisions daily. And don't leave the forum even if this first book isn't for you -- maybe a future one will be a better fit and I like your smiling face!

Make sense? I hope so!

Tara
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SO... my question if you have come this far is, how do you all address this issue as I doubt I'm the first one to get the question.

Thanks for your input! Have a great day!

[Juho Tunkelo]

Hi Tara,

First of all I'd say... if your sales conversion is working the way you want it to, don't worry too much about these kinds of inquiries. Some people buy, some don't, it's a simple game of numbers.

Having said that, if your sales letter appropriately lays out the perceived value of your product, simply repeat those arguments when you reply to these kinds of emails. If they're asking in email, they probably didn't read the letter (which may give you a hint as to how to improve the sales copy).

You did the right thing by comparing your information to an hour of consulting, that should help them realize it's not a book they're buying, but actionable information.

Hope this helps.

[Tara Reed]

Thank you Juho -- that makes a lot of sense. And I figure if 29 people have taken the free chapter and 10 have bought the book -- that's pretty good! :)

Tara

[Juho Tunkelo]

Absolutely if that many people buy, then you have nothing to worry about price wise. Good going!

[Melissa]

Do not undervalue the price of your knowledge! The book is being well received; over 30% of those who downloaded the free chapter have bought the book.... you have a GREAT product.

ps: found a typo on your web page
Part 2: Your Art: The Hear and Soul of it All (should it be Heart?)

[Tara Reed]

Thank you! And thanks for letting me know about the typo-- Hear is just not the same as Heart! :)

Tara

[Jim Zaccaria]

Hi Tara

Have you considered surveying your market as to what information THEY want and how much they would be willing to pay for that information? www.sueveygizmo.com - or www.surveymonkey.com are 2 free options.

That will give you the information you seek.

Maybe survey your current customers about what Value they have received from your work...What difference has it made in their life? Were they guided to Implementation and Profit??

Just a couple of thoughts

Warmest Regards .... Jim

[Juho Tunkelo]

I agree it's a great idea to do a survey on what people want and how they want it delivered, and that sort of thing.

However, when you ask about price, most people tend not to give very honest answer. They'll say they'd pay $10 or want it for free and yet buy it for $200 when the time comes. Or vice versa.

Money is a very confusing issue for most people, and you rarely get straight answers. You just need to find out the real value of your product to them (what it would cost for them if they did NOT get your product), and then build the perceived value appropriately in your offer. Then it'll all go swimmingly.

Hope this helps. :)

[Tara Reed]

I agree with you on the price thing... so confusing! I like the idea of figuring out the cost to NOT have the info or perhaps comparing to other available options. And of course being ok with people not buying it -- it's not like my garage is full of eBooks, right? :)

Tara

[Tara Reed]

Thank you -- I'll look into that!

Tara

[Pat OBryan]

hey tara-

it depends on your goal. sometimes, i'll price stuff real cheap- to build a list, or get deep penetration into a market.

sometimes, I'll price stuff pretty high. especially if i've got info nobody else has and i know where the people are who need that info.

i recommend that you put out a free or cheap info product on that same topic to build your list and then use the current product as an upsell.

good luck

p

[Tara Reed]

Thanks Pat! I'll work on this -- I currently give the first chapter for free to build the list.

Working on Product #2 now -- some computer skills artists are always asking about. (how to do repeat borders and patterns in Photoshop)

Tara