Pricing products
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I've been writing VST plugins for the past year or so. I have three on the market. My problem seems to be underpricing my plugins. Their quality, I dare say, is as good as plugins costing several times more. I priced my first plugin low deliberately to get my door into the market, but now I've seemed to have painted myself into a corner. I really need to raise my prices to make a decent profit. My current thinking is that by setting a moderately high price for a product you are making a claim. That claim being that this product is of high quality and is worth the price. This is a form of advertising. That is to say the higher price with its implicit claim will get you attention. Having confidence in the quality of my work, I want to make sure I bump up the price of my next plugin. I want to improve previous plugins and raise their price when I release updated versions. Any thoughts on this? How do you decide what to charge for your products?
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I've been writing VST plugins for the past year or so. I have three on the market. My problem seems to be underpricing my plugins. Their quality, I dare say, is as good as plugins costing several times more. I priced my first plugin low deliberately to get my door into the market, but now I've seemed to have painted myself into a corner. I really need to raise my prices to make a decent profit. My current thinking is that by setting a moderately high price for a product you are making a claim. That claim being that this product is of high quality and is worth the price. This is a form of advertising. That is to say the higher price with its implicit claim will get you attention. Having confidence in the quality of my work, I want to make sure I bump up the price of my next plugin. I want to improve previous plugins and raise their price when I release updated versions. Any thoughts on this? How do you decide what to charge for your products?
You should charge what you deem necessary for your products to keep you happy and running a smooth business. Yes you can price very high and someone else may design a similar product but that is the risk you run. I would raise your product pricing and then market your product more. The more sales the less you need to price high in order to keep running. Just a thought.
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I've been writing VST plugins for the past year or so. I have three on the market. My problem seems to be underpricing my plugins. Their quality, I dare say, is as good as plugins costing several times more. I priced my first plugin low deliberately to get my door into the market, but now I've seemed to have painted myself into a corner. I really need to raise my prices to make a decent profit. My current thinking is that by setting a moderately high price for a product you are making a claim. That claim being that this product is of high quality and is worth the price. This is a form of advertising. That is to say the higher price with its implicit claim will get you attention. Having confidence in the quality of my work, I want to make sure I bump up the price of my next plugin. I want to improve previous plugins and raise their price when I release updated versions. Any thoughts on this? How do you decide what to charge for your products?
You certainly can raise the price. Don't worry, those who already have it at the lower price will value it more. Those who don't have it won't even know. Put a disclaimer on your site that you can raise the price at any time and have no control over other websites that might show it for less. Good Luck!
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I've been writing VST plugins for the past year or so. I have three on the market. My problem seems to be underpricing my plugins. Their quality, I dare say, is as good as plugins costing several times more. I priced my first plugin low deliberately to get my door into the market, but now I've seemed to have painted myself into a corner. I really need to raise my prices to make a decent profit. My current thinking is that by setting a moderately high price for a product you are making a claim. That claim being that this product is of high quality and is worth the price. This is a form of advertising. That is to say the higher price with its implicit claim will get you attention. Having confidence in the quality of my work, I want to make sure I bump up the price of my next plugin. I want to improve previous plugins and raise their price when I release updated versions. Any thoughts on this? How do you decide what to charge for your products?
Hi Leslie! First of all, I would suggest doing a research on what others are charging for a similar product. This way you'd know the competition. You wouldn't want to lose potential customers because your product was priced too high. Someone may be really interested in your product and may even know yours is better than others, but the cost is stopping them from making a move. In the end, that would be a loss of sale for you. I'm a member of another business forum. Some of the members there offer their products at varying rates. Maybe you can do the same. For example, for the first 25 people you can offer them the lowest rate you are willing to sell your product for. After 25 people, raise it up $10 or $20 more. And then after those 25 people, raise it up another $10 or $20. Etc...etc... Or you can even just say the first 50 people to make a purchase will get it for $50. After 50 people have made a purchase, the rate will go up to $100 or whatever the full price may be. This way the first 50 people will think they're getting a 50% discount. Sometimes people get pushed to make the purchase immediately in fear that if they wait any longer, they'll have to pay even more. And some people just love getting good deals. Hope this helps.
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I've been writing VST plugins for the past year or so. I have three on the market. My problem seems to be underpricing my plugins. Their quality, I dare say, is as good as plugins costing several times more. I priced my first plugin low deliberately to get my door into the market, but now I've seemed to have painted myself into a corner. I really need to raise my prices to make a decent profit. My current thinking is that by setting a moderately high price for a product you are making a claim. That claim being that this product is of high quality and is worth the price. This is a form of advertising. That is to say the higher price with its implicit claim will get you attention. Having confidence in the quality of my work, I want to make sure I bump up the price of my next plugin. I want to improve previous plugins and raise their price when I release updated versions. Any thoughts on this? How do you decide what to charge for your products?
I totally agree on pricing. The lower you price your service the less valued it will be by your customers. I can't speak for plugins, but this advice should apply to pretty much anything. Just raise the price in the next version. If you overprice it, nobody will buy and you'll know fairly quickly. Then you can always lower it until you find a happy medium. I've tested this out in two industries... legal and web. There is also a book with checking out (kind of obscure) by an author named Gary Cone called "Price Doesn't Count," in which Mr. Cone argues that if there are objections to a sale, price is rarely the issue.
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