Digital pricing strategies

Digital Pricing Strategies & Lessons Learned

Bob PritchettLogos Bible Software

Secret of Profitability

Income > Expenses

Deliver Real Value

The best price makes a profit and brings the customer back.

The value should be real, and you should be proud of it.

Don’t devalue your product.

Multiple Pricing Options

Different messages:◦Limited Time◦Exclusive◦Best Price◦Auction

Different channels:◦Academic Discount◦Twitter / Facebook Specials◦Email Lists

Allow Users to Self Select

Have multiple price points◦Users know which bear they are

Let people choose a size◦Always have a way for a user to spend more

At each size, offer add-onsAsk “Do you want fries with that?”

Bundle

Good for the user (better value)Good for the vendor (fewer transactions)Spreads costs of narrow productsMonetizes low-volume products

Don’t Sell a Commodity

Differentiate your productMake a new product if necessaryTurn old products into new products

Sell Something No One Buys

If you don’t have a product so expensive no one has ever bought it, you are leaving money on the table.

Go Direct

Control PricingControl AccessControl Margin

Pick Up the Crumbs

Offer old sales terms to new customersBundle poor sellersGive away product instead of money

Respect Your Customers

A ‘best price’ should beCustomers have perfect information

Process

Ship and Charge

Start Production

- Cover Costs -

Take Orders

Launch Product

Gathering Interest

Dollars

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$34.95

Gathering Interest

Dollars

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$34.95

$39.95

Under Development

Dollars

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$34.95

$39.95

$44.95

Reference Book

EmailProduction

Shipped

Coffee Table Book

Email

Production

Shipped

Benefits

Buy Now!

An Old Business Model

Community Pricing

1,000 x $10 = $10,000

250 x $40 = $10,000100 x $100 = $10,000

10 x $1,000 = $10,000

Community Pricing $6

0 $7

0 $8

0 $9

0 $1

00 $1

10 $1

20 $1

30 $1

40 $1

50 $1

60 $1

70 $1

80 $1

90 $2

00 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

No Cost Recovery

Highest Revenue

Best Price

Links & Contact

http://logos.com/prepubhttp://logos.com/communitypricing

Bob Pritchettbob@logos.com