Do you know the cost of your information products?
How much does it cost to produce them? What elements are involved? Why is this knowing this so important?
No one wants to spend time and money on creating an information product only to find that it isn’t selling.
The problem may lie in how much you’re charging for the product. Charging too much can obviously cause people to click away from your offer. What a lot of information marketers don’t realize that if they underprice their products, it could cause prospective buyers to think the product doesn’t contain any valuable information. Underpricing your products will actually hurt your business more than overpricing them, which is why going through this process is so important.
So how do you know if you’re charging too much or too little?
First, you have to determine how much the item actually costs you to produce. Some of the items you will need to calculate the cost of your products include:
- The wholesale cost of the item including labor and any material costs to produce the item
- Any miscellaneous to complete production of the product such as items shipped to you, long distance charges to suppliers or vendors, etc.
- Shipping and packaging charges to send items to your customers
Of course, if you are producing digital products you will need to consider your time involvement and that of anyone you hire to complete the product. Digital products are usually lower in cost to produce but it’s just as important to include all of the costs involved.
Documenting every step of creating your product will help you to track all of the costs associated with getting it ready to sell. It will also help you to detect any mistakes and make improvements with future blog posts.
In our next blog post, we’ll cover part two of this topic, which is how much to charge for your information product.
