There are really two schools of thought on this. This first says that selling a high ticket item is not much more difficult then selling a low priced item and so its better to set the price of your product to something at the high end of your costumer's budget.



Of course you won't be able to sell the same number of copies of the product at the higher price as you would at the lower price since its much more expensive. But the goal is to sell a proportionately larger amount.

For example, if you sold 100 units at $17 per unit then you'd have made $1700, but if you could only sell 25 units at $97 then you'd have made $2425. And so the idea is to set the price at the higher amount, so as to make more sales.

One of the downsides, however, when setting the price high to begin with is that you inadvertently promote piracy. If you have a high ticket item then there will be people that want the item but can't afford it and will resort to looking for other means to get it. Also, the high price raises the value of the product and so makes the product a potential target for piracy.

The second school of thought is that you should set the price lower so as to discourage piracy and also so that you can get a large number of sales, even if you don't make as much money.

Why would one want to do this? Because by selling a large number of products at a low price we can then entice the buyer to sign up to our mailing list. This way we've just gained a targeted subscriber that has already purchased from us.

And furthermore, if we really over deliver on the product then we our new subscriber will also trust us and think favorably of us, both of which make for an incredible addition to our mailing list.

We can now repeatedly sell to this customer in the future, making them much more valuable to us, provided we continue to deliver great, valuable content to them through our newsletter. Remember that just because you have a subscriber, doesn't mean that you have an instant money machine. These are real people and you need to treat them well.

While it is true that we can do the same thing with a high ticket item, we won't be able to gain nearly as many subscribers and we may alienate some of our audience.

Now this concept isn't applicable to every product, and it isn't applicable to every niche or market either, its very dependent on the type of people that your dealing with.

This is only meant as an idea of what can be done with a low priced product.