Is there a "Magic" price-point for selling online?

[HalfSwede]

Hi Folks:
I currently provide consulting services in a niche market to private schools. The knowledge I have in my niche market could also easily be applied to public schools, but I just don't have the time to even target that market.

Therefore, I thought I would sell the information online via an "e-book" and/or some instructional videos.

My consulting services range from $5,000 to $10,000 per year and the contract I have with a school is typically for 4 years. So, the lifetime value of a client is anywhere from $20K to $40K (probably averaging $30,000).

My question is...
Is there a "magic" price-point for selling information on the web given that the "value" of what I am sellng is easily worth $30,000 over the course of 4 years?

My thought is to make available some of my "secrets" for $79.95 or $49.95 and then work to "upsell" the purchasers of my product to my consulting services.

So, in other words: How do you price an online information product that typcially goes for $5,000+ per year as a consulting service?

Thanks for the feedback...













Cheers,
HalfSwede

[AntonTheKhan]

[QUOTE=HalfSwede;8209]Hi Folks:
I currently provide consulting services in a niche market to private schools. The knowledge I have in my niche market could also easily be applied to public schools, but I just don't have the time to even target that market.

Therefore, I thought I would sell the information online via an "e-book" and/or some instructional videos.

My consulting services range from $5,000 to $10,000 per year and the contract I have with a school is typically for 4 years. So, the lifetime value of a client is anywhere from $20K to $40K (probably averaging $30,000).

My question is...
Is there a "magic" price-point for selling information on the web given that the "value" of what I am sellng is easily worth $30,000 over the course of 4 years?

My thought is to make available some of my "secrets" for $79.95 or $49.95 and then work to "upsell" the purchasers of my product to my consulting services.

So, in other words: How do you price an online information product that typcially goes for $5,000+ per year as a consulting service?

Thanks for the feedback...
[QUOTE=HalfSwede;8209]

Well, once you create a digital product, your overhead is virtually 0. Except for some hosting costs and credit card processing fees, plus commissions to affiliates. Still your profits are huge.
I'd use the fact that you consult for that much in your sales letter, and or I will create a membership site, so you have the recurring income.

[Mike Rhodes]

there's a fair bit of research to suggest that numbers ending in a 7 do best

77 will often outsell 79 AND 75

the key is to test

an easy way: setup 2 identical adwords ad, but sending the visitor to 2 different pages. 2 price points. 2 paypal buttons. 2 sales funnels

set your adwords ads to 'rotate' not 'optimise' in the settings & you'll be sure that pretty much the same number of visitors have hit each page

which gets more revenue?
(note - not more number of sales)

100 x $77
50 x $127
400 x $27

which is best?

[badhank]

there's a fair bit of research to suggest that numbers ending in a 7 do best

77 will often outsell 79 AND 75


any sources? this may also be associated with the research that suggested that people perceive larger savings between smaller numbers... i would love to look into this more

[jetpacklife]

Well, you can test to find the best price, if you're concentrating on volume.

You probably should just concentrate on one thing (ebook OR consulting) Think about giving away your ideas in the form of a blog or something.