6 Pricing Tactics for Your Digital Product

Escrito por Wendy Dessler on enero 15, 2019 Blog, Sell Online.

Pricing physical products is easy. You know how much it cost to produce the product, and you base your price on how much profit you want to make. With digital products, it’s a whole different ballgame.

You can’t price your digital product the same way you sell physical products. They’re different beasts altogether. Many new merchants make this mistake, and it costs them, vital customers.

There’s an undeniable allure of digital products. There are no materials (other than digital applications needed, of course), no shipping costs, no manufacturing, no complex storage, etc. You make it once and you sell an unlimited supply.

With so many benefits, it’s easy to see why digital products are becoming a huge trend in eCommerce. So what are people selling? These are the digital products we’ve been seeing all over the web recently:

  • Online Courses
  • eBooks
  • Software
  • Graphics and Digital Arts
  • Photography

With so many options, how do you know where to begin when it comes to pricing? The go-to philosophy of pricing physical products doesn’t always translate. Where does that leave your online store?

If you’re trying to break into the world of eCommerce for digital products, you need to get your pricing strategy right. Pricing is one of the famous Four Ps of Marketing, so don’t overlook its role in your business.

Here are six strategies guaranteed to sell your digital product.

A person sitting at a table with a cup of coffee, browsing new product information on a laptop.

1. Price High

When you’re pricing your physical product, you base the number on how much it cost to produce your product from start to finish. When you price your digital product, it’s about value.

Pricing high can be smart pricing. It gives your product value, and that’s something that isn’t always translated in the digital space. Why should your customers choose your eBook over the fancy hardcover at Barnes & Noble, for example?

You don’t have to be an accountant to understand this math. Sure, you’ll probably sell more eBooks if you price them at $1.99. However, you’d rather sell one eBook for $25 than ten for $1.99.

No matter how high you price your product, the cost of acquiring that customer is the same. You should want to make as much as you can per cost of acquisition.

As a merchant, you want your customers to value your product. What will they value more? An online course that’s $200 or one that’s $50? Your price signals to your customer your value, so don’t undersell yourself.

2. Value-Based Pricing

Because you can’t base your price on the cost of creation, you need to base it on your value. While it’s smart to price high if you’re selling a high-value product, there’s another way to think about this: value-based pricing.

What is value-based pricing? Essentially, it’s considering just how much value you’re bringing your customers. If you’re teaching a challenging skill or providing a money-saving solution, your digital product is high-value.

Your product is an investment for your customers. How much is that investment worth? Use this as a starting point for determining your product price.

If you’re offering an eBook that teaches how to launch one’s own freelancing business, you’ll be able to offer a solid return on investment. Price accordingly. And consider watermarking your eBook to protect your hard work.

Man using an iPad at a table.

3. Tiered Pricing

You’ve probably seen tiered pricing in action if you’ve bought anything online recently. Because people value things differently, you sometimes have to create different tiers of products for different needs. This opens you to sell to different customers.

There are customers who will be willing to buy from the highest price tier just as there are customers who are more willing to choose a lower tier because they feel they’re getting a better deal. You’ll most often see tiered pricing with software, but you can use it for any digital product.

Let’s take the eBook example again. Your lowest tier could be the eBook on its own, a solid value in itself that’s perfect for those who don’t need additional resources. Your highest tier might include the eBook, a corresponding workbook, and a printable guide.

As you can see, offering different options for different customers only adds to your profits. While it might be costly to create additional add-ons for physical products, these are very inexpensive in the digital space.

4. Try Before You Buy

Customers need to feel confident in your product before they’ll be willing to make a purchase. Using your store as a way to build trust is key, but sometimes you need an extra push. Offering a try before you buy option is an effective way to do just that.

Heidi Zak, co-founder and CEO of ThirdLove, is a big proponent of try before you buy marketing as a way to overcome any concerns. Zak claims, “letting them try it before they buy it is the best way to get past that hang-up.”

Customers are smarter than ever. They don’t want to throw money away on a digital product that won’t be useful to them. Offering a sample, trial, or another money-back guarantee will help those on-the-fence customers take the plunge.

5. Added Bonus

Who doesn’t love free things? This is one of the few things true for both physical and digital products. Everyone loves to know they’re getting a bargain.

Adding a free gift with purchase is an excellent way to give your digital product even more value. Let’s consider that freelancer eBook again. Consider adding a free downloadable invoice template that helps new freelancers work with clients.

Though small, these freebies show customers that your product is worthwhile. The trick is to really focus on the value component of your added bonus. It can’t just be a worksheet you whipped up in five minutes on Microsoft work—make it count.

Tip: Add free and paid gifts and treats to your WooCommerce products with WooCommerce Checkout Add-ons.

Person viewing analytics information on a laptop whilst sitting at a table.

6. Psychological Pricing

Finally, when all else fails, fall back on basic psychology. You see these methods in action in most major retailers across the country, but you can use them yourself in your own store.

If you’ve ever been in a high-end shop, you’ll notice the prices end in zero. Go to your local bargain chain, however, and the products all end in a 9 or a 7. What gives?

Sure, there might only be a few pennies difference in this pricing, but we fill in these gaps with value. It sounds like a much better deal to snag a product for $29.97 rather than $30. Though small, this psychology trick has profound effects on how we understand prices.

Sell More Digital Products

As you can see, pricing your digital products isn’t exactly rocket science. That being said, don’t fall for the mistake of thinking there’s a one-size-fits-all solution to pricing. There’s the success to be found in trial and error.

Dive deep into the value of your digital product. What are you offering your customers? How can you price it accordingly?

The biggest mistake of new merchants is underpricing. When you underprice your digital product, you cheapen it. Don’t send this message to your customers unintentionally. Stay ever mindful of your eCommerce profitability.

Use these pricing methods above as a springboard for your own products and jump on the digital products bandwagon – there’s a huge market out there today waiting for what you have to offer.

Have you used one of these pricing methods above? What worked and what didn’t?  Let us know in the comments.

Wendy Dessler is a super-connector who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition.

Optimize your checkout process with WooCommerce Checkout Field Editor

34 Responses

  1. Hoai Thanh Nguyen
    enero 16, 2019 at 8:02 am #

    Thank you for such knowledge !

  2. Danish
    enero 16, 2019 at 4:27 pm #

    Totally impressive post

    Just love it, and you know what I’m using easy digital download plugin to see products.

    Thank You!

  3. Danish
    enero 16, 2019 at 4:46 pm #

    Thanks for pointing out some essential tips for pricing products.
To succeed in this competitive market, good pricing strategies should be followed. Because pricing can generate interest, drive sales and attract new customers to our business. The great thing about digital products is that we can always adjust their price. So it would be better testing each of these pricing strategies above-mentioned and see which strategy works best.

  4. Premier Web Development
    enero 17, 2019 at 5:28 am #

    Most of my clients start their digital pricing on the high side. It’s a lot easier to work your way down in price to find what brings in the most revenue vs raising prices later.

    • Marina Pape
      enero 30, 2019 at 10:59 am #

      Such a good point.

  5. losy
    enero 17, 2019 at 10:00 am #

    Thank you for such knowledge !

  6. kemo
    enero 17, 2019 at 10:01 am #

    good knowledge

  7. Ariel
    enero 17, 2019 at 10:01 am #

    Thank You!

  8. jone
    enero 17, 2019 at 10:02 am #

    woow thank you

  9. technicalgeek69
    enero 17, 2019 at 7:10 pm #

    Thank you for such knowledge!

  10. Vina
    enero 21, 2019 at 7:24 am #

    It’s cool
    Specially the basic psychology to sell the products. It effect’s more I make sure when i start selling my own ebook I remember all these point.
    Thanks for this..

  11. Telerosa
    enero 21, 2019 at 1:27 pm #

    Very good info

    Very satisfied, and you know I’m using the digital download plugin to see the products.

  12. Anirudh
    enero 22, 2019 at 8:41 am #

    I deal with clients whose main focus is on Digital Downloads such as E-Books, Whitepaper, Courses etc. This particular post helped me to instal the particular plugin and make things go easy and smooth.

    Thanks Wendy

    • Marina Pape
      enero 30, 2019 at 10:59 am #

      Woo! 😀

  13. max
    enero 24, 2019 at 1:21 am #

    excellent read, many thanks 🙂

  14. sarah heart
    enero 24, 2019 at 1:31 am #

    This has inspired me!

    kind regards

  15. user not found
    enero 27, 2019 at 6:28 am #

    It’s a great share.
    Would love to apply those tactics on my store and hope it works.
    keep it up man.

  16. Kwame Kuadey
    enero 28, 2019 at 6:13 pm #

    I think there is a fine line between letting them try before buying and being afraid to charge at all, once they start using your product. Some people fear customers will leave once you start requesting that they pay. I think when they sign up, get a form of payment down and let them know when the trial period ends and be very clear about when they will be charged. Overcommunicate, and give them ample warnings before you finally charge them. Customers appreciate the warnings about the trial period coming to an end. When there are no surprises when you finally charge their card, they are more than willing to pay.

  17. Rev. Sam Samuelson
    enero 29, 2019 at 7:41 pm #

    Great post, thank you very much for the information.

  18. Estela
    enero 29, 2019 at 8:00 pm #

    I was actually following all these strategies on my own; didn’t read any article about it, but every single aspect discussed in every tactic is actually true and it works.

    Good to know that my strategy is actually confirmed to be successful in this article.

    For those who wonder if these tactics work, they do. Put it into practice. But remember to bring as much audience to your website (and for that your website need good SEO).

    • Marina Pape
      enero 30, 2019 at 11:00 am #

      Brilliant! Always great to get confirmation one is on the right, tried-and-tested track 🙂

  19. Kirsty
    enero 29, 2019 at 10:52 pm #

    Also, look and see what your competitors are charging. You may choose to make it cheaper or dearer, but there should be a reason for that.

    • Marina Pape
      enero 30, 2019 at 10:59 am #

      Really good to keep an eye on the competitor landscape.

  20. Raji Vijay
    enero 31, 2019 at 12:36 pm #

    Good article! I sell digital products on my store and these options seems very interesting. Regarding the pricing, we have to make sure the value provided is directly proportional.

  21. shilpasundhar1719
    febrero 1, 2019 at 11:19 am #

    Really an excellent post. I’m planning to sell eBooks in my site. This article had given good knowledge.

  22. Chris Pontine
    febrero 3, 2019 at 2:51 am #

    Hi there,

    I always feel tiered pricing is a great idea.

    Great article, and keep up the great work.



  23. Hena
    febrero 6, 2019 at 8:44 am #

    Good to know this!!

  24. Elena
    febrero 6, 2019 at 2:03 pm #

    Such an in-depth and well written article, thanks Wendy!

  25. Sarah Alfred
    febrero 12, 2019 at 1:38 pm #

    Such an in-depth and well written article, thanks Wendy!

  26. ociolapista
    febrero 13, 2019 at 2:51 pm #

    6 Pricing Tactics for Your Digital Product Nice post

  27. Ryan Cameron
    febrero 13, 2019 at 7:31 pm #

    I totally agree with value based pricing when it comes to web development but it is a bit tricky to transition when your clients are used of hourly pricing.

  28. rahul raj
    febrero 14, 2019 at 11:29 am #

    hello, I just looking for this type of article.


La plataforma de eCommerce con más opciones de personalización para gestionar tu negocio en línea.

  • Garantía de reembolso de 30 días
  • Equipos de apoyo de todo el mundo
  • Pago en línea seguro
%d bloggers like this: