There’s a right price point that will give you the highest amount of profits. I encourage all business owners to find this sweet spot. There’s only one way to find it: test different offers with different price points.
You can also increase your price by making your product or service even more valuable. High ticket items usually produce higher profits. That’s because it’s easier to sell fewer products. Selling one $1000 ticket is easier than selling 50 books priced at $20 each even both options give you the most money.
A Kickstarter campaign for a board game chose a different path. Kickstarter is a way to to find people who would like to fund your creativity project in exchange for something. You could invent something new or come up with a creative solution. The designer of this Kickstarter project gave people the option of choosing their own amount that they want to pay.
Believe it or not, this option works because when people pay what they want, they don’t actually pay the lowest amount possible. They pay what they think that your product and service is worth. Some of them are more generous and they appreciate your product and service more than you appreciate it yourself.
I encourage you to try out this method and you might be amazed at the results. This model works especially if people trust you and learned a lot from you over the years. Friends don’t cheat friends.
There are also a few places around the world where people employ this pricing model all the time and they are doing quite fine. Yes, there would be here and there people who will try to take advantage of the model but most people behave honestly and responsible when they are faced with this pricing model.
Go right now and give this pricing model a try. You have nothing to lose and you will be amazed at the things you will learn.