Solopreneurs get their share of annoying hagglers when closing a deal or finalizing a sale. Regrettably, many often end up on the losing side of the negotiation. Today's post is sharing a snippet from my latest mini-series, 6 Blunders Keeping You Stuck, Stressed & Strapped!
Be aware of the further reaching implications and responsibilities associated with your price point. There is a lot of psychological things going on when people decide on what a particular price represents to them.
For example, inexpensive products have PITA buyers. PITA is a slang acronym for "Pain In The A–". Those annoying hagglers who are always asking for a discount. I am not saying that people who buy inexpensive products are a problem – it is just that inexpensive products tend to attract more problem buyers than you might think. For example, many people who buy only when the price is low do not consider the value of the product. They are just looking for the lowest price they can pay. There is little evaluation outside of “This better be inexpensive. I really do not want to have to spend money, because I do not like it.” Not the best way to start a relationship, right? How about, “I would love to take you out to dinner, Sue, but it better be inexpensive.” They are already entering the deal looking to be unhappy.
Buyers of inexpensive products are often playing a much higher stakes game than you think. They are often in a tough spot financially, so their needs are higher. They are going to hold your product to a higher standard than normal because they have told themselves that it needs to be extra good to justify the painful transaction. They are not inexpensive, necessarily. They are just more likely to be pinning more hopes to what you are selling than what you intended.
Either way, you will receive more refund requests on your inexpensive stuff than on your expensive stuff in general.
On the other hand, you also face a few challenges with high-priced offerings. Expensive products have buyers who want their PDFs to be prettier, for example. How pretty? You’d be surprised. It is not unreasonable – mass-market expensive items have a lot of production quality in it.
A best-selling author has likely spent $3000 on the cover of their book alone – and that is just for a $20 hardcover. Expectations are high and it is more challenging to meet those expectations as a solopreneur because, unlike Random House, you do not have a team of people getting paid pretty significant sums of money to make everything extra shiny.