I see this happen every time there’s a big PLR sale or some new, exciting White Label comes onto the market.
So if you’re a White Label Rights (WL) or Private Label Rights (PLR) buyer and you do THE FOLLOWING, I strongly recommend you stop right now because you’re hurting your business…
What am I talking about?
Competing on price.
You’ve probably seen it yourself – some new WL arrives and the recommended resell price is $97
Often with WL there’s a recommended price but not an enforced one, so essentially resellers can charge what they want for it.
The first seller offers it for $97 but usually within days you’ll see if offered by other sellers for $97, then $77, then $37 then $27 and pretty soon it’s available at $17, it’s undervalued and no one is making any real money from it.
Except smart marketers.
Because smart marketers never compete on price.
You may have heard it called ‘a race to the bottom’ and that’s absolutely true.
If you compete on price, there’s only ONE position that matters, and that’s the lowest price.
If you’re the SECOND lowest price, or somewhere in the middle you’re in a really bad position.
No one is going to buy from you when they see the lower prices.
There’s ZERO point in being ‘almost the lowest price’.
Your profit margins will be hit very badly because as I said above, only ONE marketer can achieve the bottom position.
AND they’re only there until someone else comes along to underprice them, (which always happens).
These buyers are bottom feeders (and I don’t mean that in any derogatory way), they buy solely on price.
And that means no loyalty to you – as soon as they can buy your product somewhere else for a lower price, they’re gone.
So any advantage you DO gain from being the lowest price is usually very fleeting and vanished quickly when some undercuts your price point.
More bizarrely, most WL and PLR resellers usually don’t even aim for the transient position of being the lowest priced seller (which would make some sense because they might make some profit before they’re undercut).
Nope – most resellers position their products ‘somewhere in the middle’ simply because that somehow feels OK.
And there’s ZERO strategic advantage to being in the middle
So what’s the answer?
Well the solution I recommend is to take yourself OUT of the pricing battle altogether by ignoring market prices and pricing yourself at a PREMIUM.
Take that White Label and either rewrite and rebrand it so it’s unique and price it accordingly…
…or even better, do that and then add YOURSELF to the mix (maybe as a coach or mentor) and push your prices as high as you dare.
If people buy at $27 push the price to $47
If people buy at $97 push the price to $147.
If they buy at $147 push the price to $197.
If they stop buying revert to the highest price BEFORE that when they did buy
Now I know a lot of you reading this are probably thinking that this wouldn’t work for your customers.
That you somehow have to price ‘within industry norms’
But that’s not true.
You don’t have to take other marketer’s prices into consideration when you price your own products and services.
Instead look at your own business, and the value you provide and price on that instead.
Add value and increase the price.
It’s a difficult thing to actually do in your business – quite scary actually, at least when you first try it.
But you’ll make more money 😉
