There are many obvious reasons why selling high-priced products makes more sense than selling low-priced products.
- You need to make fewer sales to make more money
- You need to inventory less product
- You benefit from higher margins and therefore higher profit
- You process fewer transactions which means lower processing fees
- You ship fewer products, which means lower shipping and labor fees
But there are a couple of bizarre reasons you may not have considered.
Bizarre reason #1. People who purchase
high-priced products are far more likely to actually use those products
and benefit from them.
As strange as it may seem, people who
pay for a $1000 coaching session, are more likely to implement that
advice than they are to implement the VERY SAME ADVICE if it comes from a
$19 ebook.
People just don’t value or implement “cheap” advice. No matter how good it is.
But, the higher implementation rate of
high priced products means more success stories, which means more
glowing testimonials, which means more sales for you. It’s a profit
machine.
Bizarre reason #2. People who purchase high-priced products complain less than people who purchase high priced products.
Again, it seems strange. You’d think
that the more money you spend on a product, the more discerning and
picky you’d be. But that’s not the case.
As Tim Ferriss points out in his bestseller, The 4-Hour Workweek,
“Higher pricing attracts
lower-maintenance customers (better credit, fewer complaints/questions,
fewer returns, etc.) It’s less headache. This is HUGE”
Price shoppers and penny pinchers are usually a pain in the backside on so many levels.
| 
