How to Price Beats So They Sell!
Undoubtedly, setting prices for your beats that you sell online can be tricky and overwhelming. However, do not worry, we’re here to help. Now, you should keep in mind the significance of setting the right price for each beat, as many businesses fail in the industry for the sole reason of wrong pricing; whether it’s not high or low enough. Therefore, be cautious and do your research before actually charging customers with unbelievable prices.
Take into Consideration the Following:
Things that you need to take to account when setting your prices are your experience level, your talent level, the added value you offer, as well as your identity as a producer and a brand, how many hours you spend working and what you think is a fair rate per hour. All of these should contribute when you are making decisions regarding your price. Moreover, keep in mind that you are most likely a small business and small businesses don’t turn in profit the first couple of years or actually you might be losing, so don’t let that affect you because it’s totally normal.
Of course, prices vary depending on whom you’re working with. For example, if you’re working with an unsigned artist, independent artist, or a major artist whether they have moderate or major budgets.
Types and options of license vary and so does their pricing.
1: The Non-Exclusive Lease
First, this includes the MP3 file. Leasing beats is the most common and averages around the price of $25. 28% of the prices are for $25 out of 61 tracked prices.
2: The Premium Lease [Wav]
This one includes a Wav file and it’s a non-exclusive lease as well. The average price was $50; 23% out of 42 tracked prices
3: The Tracked Outs
These include tracked out stem files usually included are the WAV and MP3 files. The average price was $100; 25% of 38 tracked prices.
4: The Exclusive Beats
These include all files and exclusive rights to the beat. The average was 150$- 250$; 35% out of 42 tracked prices.
Set a price that makes sense to you while it feels comfortable for you to take.
What does Your Pricing Say About You?
Obviously, pricing indicates a lot about you. For example, it is indicative of where you value your business, it is indicative of your position in the market, and in some perspectives, it is indicative of the quality of your products. To illustrate, if you wanted to buy an Xbox controller, you won’t be going to the dollar store, as it indicates the quality of that controller. Similarly, when you set low prices, this how customers view you.
However, it is understandable that in the beginning your problem will be the obscurity and the idea of setting high prices whilst nobody knows you, that will probably might backfire. Yet, you won’t actually know till you try and there is no harm in playing around with the price in the beginning till you find your sweet spot. Eventually, you’ll find your sales raising at a certain price and that means you’re getting closer to the spot or you’re already on it.
Next, you got to set your goals. Whether you aspire to create this business to other businesses (B2B) or if you’re just aspiring to stick to this business, then you have to plan ahead. Meanwhile, make sure your desired price point -the price you’re getting on the regular- is directing you to achieve that goal of yours in a suitable period of time.
Moreover, keep in mind that the quality of your pricing attracts the quality of your customers. Plus, the lower you go on the scale, the bigger the problems go.