Sunday, July 17, 2011

pricing and perceived value

another element, pricing... under $10 it doesn't really matter whether it's $9.99 or $4.99

This could make some difference but in my mind, the $4.99 makes the perceived value lower than $9.99.

You will a bit that the content will be less valuable because of the low price.

It's the same as buying a pair of jeans.

a $19 of jeans might give you a perceived value which is way lower than a $199 pair of jeans even though they might not be really that different. or the differences are so subtle...

So, what's the conclusion?

That my price on kindle is right. 9.99 is perfect.

I decide to sell some of my spiritual titles for $2.99 for ethical reasons.

but those are isolated cases.

I noticed so far that setting up the price at $2.99 or $9.99 doesn't seem to make any difference.

when someone makes a buying decision, whether the price is $2.99 or $9.99 makes little difference in their decision making.

On my site, products are $19.

I am still hesitating between $9.99 (same as amazon), $19 or free.

at this stage, these 3 options are open.

the experience with the first book I created was good - originally 30 pages - $19 - that was some years ago and it sold really well - some isolated refund request around that time related with the book length - maybe 2-5% refund requests - the requests dropped as soon as I started adding more content- from 40 pages on.

so, conclusion is thatthe price was not a limiting factor for sales.

would the book sell twice as well if the price was half?

It's of course something I would need to test but in my mind, the perceived value is way lower with $9.99 on my site.

On amazon, it's different because people are used with a certain price range, most ebooks are under $10.

so, a sudden increase in that space is an unusual element.

+ because of amazon's system the royalties percentage drops as soon as you cross $10 from 70% under $10 to 30% above $10.

So, it's an easy decision.



So,