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Let The Market Choose Your Price?

By Stuart Reid

Setting correct price is hard for any on-line business, and there are plenty courses and manuals dedicated to this delicate subject.

You want to have a price that will make you a profit, obviously. But you also want to have happy customers who feel you've charged a "fair" price.

The problem is too low a price will make your product seem inferior. Give-away products suffer even more from this "perceived value".

Conversely, if you charge too much (even though price may well reflect time and effort put into product) you may get many disgruntled customers and many complaints which can have disastrous knock-on effects.

So is there a middle ground?

I'm sad to say not really, but there are a few methods you could try including a "crazy" trial I'm currently testing myself...

The most obvious way to decide your price is to see what rest of market is charging. This is not as easy as it sounds, since "rest of market" will vary widely.