Is a $1 product a good idea?

Is a $1 product a good idea?

Discussion in 'E-Commerce & Payment Systems' started by snginc, Jan 8, 2015.

  1. snginc

    snginc New Member

    Messages:
    14
    Likes Received:
    2
    Trophy Points:
    3
    Ratings:
    +2 / 0 / -0
    Hi stars of IM,

    Would it be a good idea to make a product worth $1 and sell it to thousands of customers?
    I ask because I can not seem to make and sell products with higher value and I am new in this field.

    Thanks in advance.
     
    Loading...
  2. pcullum

    pcullum Moderator

    Messages:
    14
    Likes Received:
    5
    Trophy Points:
    3
    Ratings:
    +5 / 0 / -0
    There isn't that much difference between a $100, or a $10 or a $1 product.

    What matters is your own attitude and the actual value that you create in a product justifying the cost a client will incur.

    Marketing is simply marketing while selling a product is simply selling a product. If you are unable to do the two, it will not matter what price tag you attach to your product.
     
  3. ProfMike

    ProfMike Active Member

    Messages:
    185
    Likes Received:
    75
    Trophy Points:
    28
    Ratings:
    +90 / 0 / -0
    The cost of the product directly reflects the amount of effort you put into the product. Or at least that is what I believe based on all those marketing classes I have taken. Pricing a product is a tricky beast.

    If you have a good product, and you price it too low, the product loses its value. People will look at the product as cheap or not worth anything if priced too low.

    Experiment with different prices and methods of promoting the product and the price. Have timed sales, large discounts, etc. You have to find the sweet spot. Every product has one it is just a matter of finding it. Don't assume that a $1.00 product will sell more copies than a $10.00 product, that is not always the case. In fact most times it is not.

    I have developed training classes and priced them where I thought the price was perfect, $11.00, never sold a copy. The class was 11 hours in length, that is where I came up with the $11.00, good selling point I thought was $1.00 per hour of training.

    Took that same class, changed the feature graphic, tweaked the description, priced it at $35.00 and sold over 100 copies the first 60 days and it is still going strong after almost a year. I am averaging about 10 to 15 sales of that class a month.

    So there are many things that make up a good sale. Not just price...
     
  4. SenseiSteve

    SenseiSteve Member

    Messages:
    35
    Likes Received:
    10
    Trophy Points:
    8
    Ratings:
    +10 / 0 / -0
    ProfMike is absolutely right and I couldn't have said it better. Don't assume if you price a product at $1 that it will sell by the thousands. There's a perceived value to your product, whether it's $11 or $35 dollars ... you just need to connect the dots to find the right price. Good luck, sir.
     
  5. Dean

    Dean Well-Known Member

    Messages:
    1,495
    Likes Received:
    189
    Trophy Points:
    63
    Ratings:
    +201 / 0 / -0
    I think one of the big factors in selling a cheap product like this is going to be finding a large number of buyers that are interested and that will actually buy the product.

    Another thing to consider is what form of payments are you going to take. If you will be accepting Paypal as payment then you will need to consider the fees they are charging as well. If you have a standard setup with Paypal then they will take about $.33 from each dollar, leaving you with just $.66. If you get setup with micropayments with Paypal then they take 5% + $.05 for every dollar or part of a dollar. In this case you would only lose $.10 from that dollar and saving like that can add up.

    Whatever you decide, just make sure to plan it out very carefully first.

    Cheers, Dean
     
  6. Argus

    Argus Active Member

    Messages:
    132
    Likes Received:
    29
    Trophy Points:
    28
    Ratings:
    +30 / 0 / -0
    I think that a product that sells for one dollar will be a lot of work for little money. Selling for one Euro is little money so one US dollar will be a lot less.

    I think it would be better to put your efforts into selling something with more profit.
     
  7. ulterios

    ulterios Well-Known Member

    Messages:
    1,138
    Likes Received:
    224
    Trophy Points:
    63
    Ratings:
    +251 / 1 / -0
    If you were completely sure that you could sell it to thousands of people and were able to have the cost per unit (including payment processing fees), time needed to market and promote it down to a minimum then maybe it could be a good idea.

    Would I want to do it myself? I doubt it, simply because there are easier ways to make money then selling thousands on $1 items that could net you more money for your given efforts in most cases.

    However you could use this as a testing method and do some blog posts on the results as well and get other sources of income from your efforts. ;)
     
  8. Maria Marketing

    Maria Marketing Active Member

    Messages:
    799
    Likes Received:
    81
    Trophy Points:
    28
    Ratings:
    +83 / 0 / -0
    It might be a good idea to sell products at this low price but only if it did not take much time or effort to sell them. You would need to know that you could sell a whole mess of them though so it was worth your time and efforts. :)
     
  9. Muzzamil

    Muzzamil Active Member

    Messages:
    123
    Likes Received:
    44
    Trophy Points:
    28
    Ratings:
    +47 / 0 / -0
    It is not a good idea to sell a product that sells for $1 because will be already sure that the product has no real value and also you will have to make a lot of sales to make even hundred dollars. You will have to sell your product 100 times to make $100. This will not be net profit. This is because you will have spend money on advertising or getting traffic. After that you will end up with a negative profit. Suppose you spend $150 on advertisement, and you make 60 sales this means that you have lost $90. It is better to start with $37 because this is where most of the low ticket products start. Good Luck!
     
  10. Traveler

    Traveler Active Member

    Messages:
    662
    Likes Received:
    39
    Trophy Points:
    28
    Ratings:
    +41 / 0 / -0
    I have seen a lot of ebooks and digital things selling for about this amount lately so I guess some people are fine with it. I think it might be a waste of time unless you were actually able to sell thousands of them or more.