Digital Product Pricing Worksheet – Set the Perfect Price

Digital Product Pricing Worksheet

Digital Product Pricing Worksheet: Setting The Perfect Price Point

You’ve got a product that you’re getting ready to sell. But before you can do that, you need to set the perfect price point.

This is a price point that your audience is willing to pay, one that you’re happy to accept (e.g., good profits for you), and one that produces high conversions and low refunds.

Setting the right price for your digital product can make all the difference in its success. Finding the perfect balance between profitability and customer satisfaction requires careful consideration and analysis.

This worksheet will help guide you through the process of determining the optimal price for your digital product, whether it’s an e-book, online course, software, or any other type of digital offering.

Step 1: Beginning Your Pricing Research

Before diving into setting the price for your digital product, it’s crucial to lay the groundwork by conducting comprehensive pricing research. By understanding the market landscape, competitor pricing, and customer expectations, you can make informed decisions that will set you up for success.

Your first step is to see what business owners in your niche are charging for similar products.

You’ll want to focus on exact-match products first (e.g., products on the exact same topic in the same format), but then you can expand and look at other products as well.

For example, if you’re selling a video course, you’ll want to first focus on other video courses on the same topic. After that, you can look at other digital products on the same topic, such as text courses.

  • What is the price range for similar products in your niche?

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NOTE: Here you write down the broad range of prices that various marketers are charging. For example, reports that are similar to yours might range from $5 to $50. That’s the range you’d write down in the blank above.

NOTE: Check sites like Udemy and Amazon for pricing research. You’ll also want to go directly to your competitors’ sites to see what they’re charging.

  • What is the most common price range for similar products?

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NOTE: Here you’re looking for the median price. While there may be quite a large range in prices, many products will be right around the same price. For instance, if the range is $5 to $50, you might find that most products are right around $20. Or if you can’t pinpoint an exact median price, you might find most price points fall into a narrower range, such as $20-$30.

Consider this median price your starting point. You’ll refine this price point in the next step…

Review these points for further pricing research:

  1. Consider Perceived Value: Evaluate the unique value proposition of your digital product. What differentiates it from competitors? Consider factors such as the quality of content, level of expertise, features, customer support, and any additional bonuses or resources you offer. Determine how these aspects contribute to the perceived value of your product.
  2. Assess Market Demand: Assessing market demand is crucial for setting the right price. Look for indicators of customer interest, such as search volume, social media engagement, or discussions in relevant forums. By understanding the demand for your product, you can better align your pricing with what customers are willing to pay.
  3. Seek Customer Feedback: Engage with your target audience to gather valuable insights and feedback. Conduct surveys, interviews, or focus groups to understand their willingness to pay, price expectations, and perceived value of your product. Ask specific questions about pricing to gauge their comfort level and any price sensitivity they may have.
  4. Explore Pricing Models: Consider different pricing models that align with your product and target audience. Common models include one-time payments, subscriptions, freemium (offering a basic version for free and charging for premium features), or tiered pricing based on different levels of access or features. Evaluate the pros and cons of each model in relation to your product and audience.
  5. Monitor Industry Trends: Stay abreast of industry trends and changes that may impact pricing. Keep an eye on emerging technologies, market shifts, or new competitors entering the scene. By staying informed, you can anticipate changes in customer expectations or market dynamics that may affect your pricing strategy.
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Remember, the beginning of your pricing research sets the foundation for a successful pricing strategy. By understanding your target audience, analyzing competitors, and assessing market demand, you can make informed decisions that will contribute to finding the optimal price for your digital product.

Step 2: Determine What Makes Your Product Worth More or Less

Now what you need to do is examine your product a little more closely so that you can determine if its perceived value is more or less than the other products you’ve been researching.

Fill in the blanks:

  • What format is your product in?

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NOTE: Coaching and consulting has the highest perceived value, followed by video, audio and text.

  • Are you an expert on the topic?

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NOTE: People tend to pay more for the exact same information when it’s coming from an expert versus someone who hasn’t established their expertise yet (or someone who isn’t as skilled). For example, people are going to pay more for a book on getting rid of back pain from a doctor versus from someone who doesn’t work in a healthcare field.

  • Are you well-known in the niche?

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NOTE: People will tend to pay more for products from “celebrities” or other well-known people. This doesn’t mean you need to be well known all over the world. Rather, you just need to have name recognition within your niche. That’s why brand-building is important. (Plus people like to do business with those they know, like and trust.)

  • Is your product for beginners, intermediate or advanced users?

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NOTE: Beginner-level information tends to have a lower perceived value than information that’s designed for intermediate and advanced users in the niche.

  • How have you positioned the product/what is your branding?
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NOTE: Don’t brand your business or position your products based on price (e.g., “low priced leader”). Instead, compete on value.

NOTE: How does your product brand and positioning affect price? For example, is your branding based on “luxury” or “premium quality”? If so, you may be able to charge more than similar products.

  • What makes your product unique?

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NOTE: If your product has something that no other products have, then you can charge more for it.

  • How much information is available in your niche on this topic?

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NOTE: If this is an in-demand topic, yet there is not much available in the niche on this topic, people will pay more for it. (At least until other options become available, so this pricing may be temporary.)

  • What all is included in your offer?

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NOTE: What bonuses are included, and how do these bonuses affect pricing? For example, do you offer tools like checklists, worksheets, mind maps and similar? Do you offer high-priced bonuses like coaching or apps? You’ll want to determine how much your materials and bonuses raise the perceived value of your offer, and price accordingly.

  • What other factors may affect the price of your product?

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NOTE: Here you can brainstorm any other factors that may affect the price.

One of the key factors in setting the right price for your digital product is understanding what makes it worth more or less to your customers.

By identifying the unique value drivers and factors that influence perceived value, you can strategically position your product in the market.

  1. Assess Quality and Uniqueness: Consider the quality and uniqueness of your digital product. Does it offer a higher level of expertise, accuracy, or depth of content compared to competitors? Evaluate the time, effort, and resources invested in creating your product. If your product stands out in terms of quality and uniqueness, it can justify a higher price point.
  2. Evaluate Features and Functionality: Analyze the features and functionality of your digital product. Does it provide additional tools, resources, or interactive elements that enhance the user experience? Assess how these features contribute to the overall value and differentiate your product from alternatives. Customers may be willing to pay more for added convenience, efficiency, or functionality.
  3. Consider Expertise and Authority: Examine your own expertise, authority, or credibility in the subject matter. If you have established yourself as a thought leader or industry expert, it can significantly increase the perceived value of your product. Customers are often willing to pay more for products created by recognized experts or trusted authorities in the field.
  4. Evaluate Customer Support and Resources: Take into account the level of customer support and additional resources you provide with your digital product. Do you offer dedicated customer support, forums, or online communities? Are there supplementary materials, tutorials, or guides included? These value-added elements can enhance the overall customer experience and contribute to a higher perceived value.
  5. Assess Brand Reputation: Consider the reputation of your brand or business. If you have a strong brand presence, positive customer reviews, or a track record of delivering high-quality products, it can positively impact the perceived value of your digital offering. A trusted brand often commands higher prices due to the confidence customers have in the reliability and value of the product.
  6. Evaluate Market Demand and Scarcity: Assess the level of market demand for your digital product and whether it has any elements of scarcity. If there is a high demand for your product or limited availability, it can justify a higher price point. Scarcity can create a sense of exclusivity and urgency, motivating customers to pay more to secure access to your product.
  7. Analyze Competitive Landscape: Compare your product to similar offerings in the market. Analyze their pricing, features, and value propositions. Identify areas where your product outshines the competition or where it may fall short. Understanding the competitive landscape will help you position your product effectively and adjust the price accordingly.
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By evaluating the factors that contribute to the worth of your digital product, you can determine a price that aligns with its value proposition. Remember to consider the unique qualities, features, expertise, and customer experience that differentiate your product from alternatives.

This understanding will help you confidently set a price that accurately reflects the value your product provides to customers.

Step 3: Pick Your Price Point

Now go through each of the factors you just listed and compare them to similar products in your market.

Start with the median price and move your price up and down based on those factors.

For example, maybe the median is $67, but your offer is worth more based on what’s included, your positioning and your level of expertise. You may decide to set the price at $99.

  • Pick your price point:

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Step 4: Test Your Price

No pricing strategy would be complete without actually testing the price.

Here you’re going to do two types of testing:

  • Big increments. You can split-test big increments, such as $47, $67 and $97.
  • Small increments. Once you know your overall price (such as $97), you can refine it by testing smaller increments. In this example, you might test pricing such as $97, $99, and $99.99. (If there is no significant difference, then choose the highest price.)
  • What big increments will you test?

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  • What smaller pricing increments will you test?

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Congratulations!

If you run through all of these steps, then you’ll find the “pricing sweet spot” that delivers high conversions and happy customers.

Be sure to keep an eye on refund rates when you do your testing and tracking.

Digital Product Pricing Worksheet – Set the Perfect Price

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