How to Correctly Set Prices - One Method

Everybody is facing this big dillema: how to correctly set the prices in order to get the biggest number of sales. One should not look to the nubmer of sales but to the global income one's portfolio generates. I have been searching the web and books and asked friends for quite a long time on how to set my prices. I recently found what marketers call 'ELASTIC PRICING'. In short, you set different prices for your merchandise and after a period of time you see which price has brought you the biggest earnings. Many sellers fall in love with number of sales but forget about the total income. Which number of sales generates the highest income? Not necessarily the biggest. It depends on the price. For example: five sales of 10 USD give a smaller income than two sales of 75USD. For stock shooters, the method is a bit difficult but is worth the effort. Here is how you can do it.

Here is the link to the original article which details the method:

http://regeleionescu.blogspot.ro/2013/06/how-to-set-stock-photo-video-price.html

P.S: For Pond5.com contributors there is a thing called Gapminder which makes there life easier. It basically shows a comparative graph of sales/incomes for different price levels.

it looks very clever. I will give it a try although I have a small portfolio. I always wondered how they do it. Worth mentioning is that video clips are not t-shirts nor shoes and they obey different market laws. Perhaps a marketer could get in and illuminate us a bit. Anyway, very interesting article thanks for sharing!

I liked the method...it is not unsimilar to my pricing strategy, except that it is more method than madness. My higher priced clips are what make me the dough. At least when P5 doesn't cut me off. I feel cut off right now, but I am certainly NOT going to lower my prices. I know the value of my efforts.

Christian, you mentioned Gapminder. Care to elucudate on that a bit? It makes no sense to me.

Gene there's a Gapminder graph on your dashboard.

I know that, silly - how to use it is my question!

I work full time as a video editor for a small production company and just recently started selling stock myself. Coming from the buying side pricing doesn't matter too much, except when things priced way too high, but that is rare. When we need a shot, it doesn't matter if it's $40 or $400. If we need it, we buy it. And what we buy is so random. It's all based on what the project calls for. Maybe one week we need a shot of seagulls flying overhead. Or another week we need a cool motion graphic background. If we can find it we buy it, because it's usually cheaper/easier/faster and more convenient to spend a little cash for a clip rather than acquire it ourselves.

@natebowman - precisely correct. Thank you.

Your paragraph needs to be framed and put at the top of the home page. Thanks

Thanks for the details natebowman. Very useful indeed :-)

I also wish we could post natebowman's comment somewhere prominent for all to see. It would go a long way in ending the ongoing pricing debate.