TMBA 136 (LBP119) – Bro Pricing And The Most Important Model In Online Business

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TMBA 136 (LBP119) – Bro Pricing And The Most Important Model In Online Business post image

Dan and Ian got so many great questions from last week’s carefully orchestrated listener request that they decided to keep a few for future episodes that needed more than a quick answer.

In this episode they tackle this frustrating issue that plagues many an information product or intangible service provider

My biggest question about business lately has been pricing. I have no idea whether or not I’m charging my customers too much, too little, etc.

With physical products, you have a good idea what your cost of goods sold are, can add a pretty standard markup, and that’s the price.

It’s a lot harder when you’re dealing with information products that have a marginal production cost of 0.  – Matthew Paulson

Head down and pencils up – this episode is full of pricing insights and strategies you need to have a successful online business, including:

  • When To Offer Your Customers Credit
  • Why The Guy Who Asks For Bro Pricing Isn’t Really Your Bro
  • How To Compete With Custom Pricing – The Bundled Pricing Trick That Works Everytime
  • What Price Anchoring Is
  • And The Most Important Pricing Model In Online Business

Listener Feedback

LBP on OEM Auto IntegrationAdded your several of your podcast’s to my iPhone a few months ago but had not listed to any. recent 12 hour drive to New York decided to give it a listen. Listened to them the entire rest of the drive. Updating some product info and product images.  Thought you would like. – Dana Miller, Sambrea Inc.

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Episode length: 34:00

 

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If you know some ways we can make it better, please send us an email: Dan at lifestyle business podcast . com.

Published on 09.06.12
  • Shayna

    Man, I missed you in NYC by about a month! If you ever come through Brazil, drop me a line.

    Fantastic episode. I found the “undercharge and overdeliver” idea interesting. Here’s a question for you: I’ve been building an audience and launching occasional products, but I am gearing up for a premium membership program launch in January, and I’m not sure about the pricing. My competitors run from $8 – $60 / month.

    Before launching to my own audience, I was thinking of doing a bit of a test with fake sales pages (each at a different price point), driving traffic from some paid ads, and seeing which price point gets the most clicks to “join.” Good idea? Or not useful?

  • http://www.tropicalmba.com Dan

    Hey Shayna! My basic approach would be to try and come in at the top of the market, so 60 bucks, and try to bundle services so that you can deliver more value at that price point than anyone else. i’m not super hot on the ad testing thing because it’s a fundamentally different audience. you’d probably get better information by talking directly with a small handful of your current audience.

    best of luck with the launch!

  • http://whiteraverrafting.com/ Ben Hebert

    Billing on a yearly basis so that your product or service isn’t in their face so often! What a great tip, going to use this with some of my freelance clients where I manage their web presence. Keep rocking, going to send you all a question for next weeks episode tonight.

    Cheers,

    Ben

  • http://www.tropicalmba.com Dan

    thanks Ben!!

  • http://twitter.com/iPodCarKits Oem Auto Integration

    Hey this Dana. Thanks for the Love on the Podcast. If there are any LBP listeners that have any questions regarding solutions to connect any smartphones or iPods to their factory car stereos to listen to there favorite podcasts through direct connection or Bluetooth feel free to shoot me an email and we can find the best solution for you. dmiller@oemautointegration.com

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