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How to Price Right

by Keith Thirgood

The other week, someone asked me a question I've been asked many times before. "How do I price my services?" (Sometimes, it's "How do I price my product?") It always comes down to the same thing: It's extraordinarily hard to arrive at the right pricing.

I usually find myself giving the standard answers: time, overhead, reasonable profit, what the market will bear. The answers always seem inadequate. There's never been a way to do accurate pricing automatically—until now.

I've just reviewed a brand new web-based tool called Make Your Price Sell (MYPS) http://myps.sitesell.com/success5.html. It's amazing; it has the ability to price--and price accurately--anything. It's quite a unique tool, and it's what I'm going to talk about today.

MYPS is based on the "Teeter Point" principle. This is the point at which the customer just can't make up their mind. A dollar more, the sale is lost, a dollar less, you make the sale. (This is a huge oversimplification, but you get the idea.)

MYPS uses probability and games theory, calculus, and other mathematical tools to arrive at the "perfect price". Previously these sorts of tools were only at the disposal of the largest of Fortune 500 companies. And were not that good. MYPS uses a patent pending process which goes well beyond any of the existing tools.

One of the great things about this new tool, (for the next little while) is that you don't have to pay anything for it up-front. Ken Evoy, the developer, is calling his new pricing model, "Buy Now, Pay Maybe". Only when a 'purchaser' is satisfied that MYPS has delivered the results they need, will they be expected to pay for it. It's completely risk free. Even better than a money back guarantee.

This is the way it works. Let's say, you've just created a product. You don't know whether to price it at $29.00 or $299.00. So you sign up to MYPS. It takes a few minutes to customise the survey and set it up on your own site. (Which you've already designed to sell your new product.) Now your survey starts collecting data.

The Pricing Manual, which is included with MYPS, shows you how to get the responses you need. This is likely the best manual on pricing available on the whole internet. (Even without MYPS, the manual is good value.)

As your responses roll in, MYPS analyses the results. You can see the results by going to the MYPS site and viewing your numbers in a variety of graphs. There are eight bar charts summarising and interpreting the data, and four line graphs that show what will happen at a wide variety of price points, including MYPS's suggestion of the perfect price.

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NOTE:
MYPS is from the same team who brought you Make Your Site Sell (MYSS), which is considered, the single best source for selling on the net. http://www.sitesell.com/success5.html MYSS is over 800 pages of solid gold insight into web-based sales, all for under $20 US

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I've always wanted to know what the perfect price for a small business (SOHO) website is, so I'm running a test of the program on my own website, as you read this. If you have a couple of minutes, visit http://capstonecomm.com/survey.html and complete the survey. Any of my readers who do this, and then have Capstone develop a SOHO website for them, will get a 15% discount off the "perfect price" the survey determines.

MYPS is a perfect companion to the Make Your Knowledge Sell (MYKS) program. http://myks.sitesell.com/success5.html If you intend to develop a knowledge-based program, you must have MYKS. It will cut hundreds of hours off your development time, and you'll end up with a far superior product.

To know the 'right' price to offer your products or services to the market is a dream for most businesses. MYPS offers to turn it into a reality.

Article by Keith Thirgood, Creative Director Capstone Communications Group Talk to Keith if you are looking for marketing advice or materials that really work. Visit http://capstonecomm.com

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