When is too cheap, too cheap?

Posted on May 28th, 2009 by Larry Chase

Any good DM’er knows that the perceived value of a product or service has to exceed by many times the asking price. Some people accomplish this by lowering the price, while others do it by adding more perceived value to a higher-priced product or service.
While each situation is unique, it’s usually a pretty good idea to go with the latter strategy and add more value to the mix. Too cheap a price can cause people to back out of the deal entirely. After all, if an ebook, sushi knife or what have you is only fetching $4.95, how good can it be? This is especially true in B2B pricing. LC

The Internet Marketing Tip above originally appeared in Larry Chase's Web Digest For Marketers which you can subscribe to at no charge at www.wdfm.com.