Pricing if your platform relies on SEO

Lesson Details:

Video Transcription: Now let's talk about some of your pricing strategies this video is brought to you by Appy Pie Academy pricing can be really complicated but it doesn't have to be if you use the rule of thumb that I'm going to give you now in everything you sell there's usually a market and you just have to see what the competitors prices are and you just have to price yours according to where you fit in terms of quality and what you provide compared to competitors if you are new you want to be a little cheap on the cheaper side it's not a great way to go always because you don't want to cause in any market a race to the bottom pricing so you altima Lee don't want to be the cheapest one but at the same time in the beginning it's not bad because usually products that are have been just launched they're tested less they're less proven maybe they have less features maybe they have less quality because your product is going to become better over time which is when you're going to increase your price but in the beginning you can be a little cheaper now when you sell online you have two choices selling on your own website or on platforms like eBay Amazon Etsy and a million others on your site you have less buyers but there's less competitive sellers right you have less competition on your site it's really only you so you can price higher because there isn't a market you dictate the price much more when you sell on platforms these are the Amazon eBay Etsy whatever else the big sites the competition drives the prices down everybody's competing like crazy and naturally consumers benefit from lower prices so the sales volume is typically potentially very high but per sale the price is lower so the price would be a lower price than you'd have if you were selling on your own site what I do is on the platforms I actually intentionally price a little lower so that I have more activity what does that mean if I have a cheaper product in itself that's not great it gives me some benefits like cheaper products are bought more frequently then expect more expensive product so I get more sales then I get more reviews and those reviews beget more sales and so on and so on and so on and then my product goes faster in that platform and begins to dominate hopefully and that's the benefit of pricing low so I don't chase a large profit margin initially I chase growth on the platform and dominance in my niche and then I raise my price so this is essentially how to know what price range to apply to your product and how to price it on your site or if your sell on platforms these are all like relatively dependable rules of thumb that if you follow them you'll actually understand pretty easily how to price your products.