Selling Products That Have Low Added Costs

Some people feel
they shouldn’t have to pay
for eBooks.
Producing two copies of an eBook
is the same cost
as producing one copy of an eBook.

There are a few issues with this.
There ARE incremental costs.
There are the distribution costs
and the marketing costs.
The books I give away
for free
cost me money.

Also, pricing usually takes into account
a certain number of copies sold.
Producing one copy
might cost me $1,000.
Of course, I can’t charge
that first customer the full $1,000.
I spread it over
an estimated number of customers.

One way I convince readers
to pay $2.99 for a 200 page eBook
is by selling them an ongoing experience.

They aren’t merely buying an eBook.
They’re buying a world.

My newsletter includes updates
on this world.
Future eBooks
reference the first eBooks.
I send out baby announcements,
craft images for holidays
like Mother’s Day.

Software has the same selling challenge.

Seth Godin
shares

“I like paying for my software
when I’m buying it
from a company that’s responsive,
fast and focused.
I like being the customer
(as opposed to a social network,
where I’m the product).”

If you’re selling a product
that has low incremental costs,
consider selling more than that product.

Published
Categorized as Sales