I’m often asked
to calculate
the optimal pricing
for new products
– the pricing which maximizes profit.
I base this calculation
on the behavior of
a TYPICAL product.
A typical product
would sell X units
when priced at Y dollars
and that gives us Z profit.
The product has to be typical.
THAT is key.
It has to behave
like the other products available.
Often our products
AREN’T typical.
I know, for example,
I could charge
another dollar per romance novel.
That’s what a typical romance novel
in my niche
charges to maximize profit.
However,
I also know
I plan to write 20 plus stories
in that series.
That’s not typical.
An extra dollar charged
on a 20 novel series
will decrease readership substantially.
There is no perfect pricing
for everyone.
Calculate the perfect pricing
for YOUR business.