Price Testing

$97, $95, $100. Three different prices that aren’t too far apart in dollar amount, but can have a large effect on the dollar amount in your bank account.

The truth is, the actual price of your product is a major testing factor. Those 3 different prices above may swing the number of sales you get by a surprising percentage rate. I’m not going to get in to specifics because the data coming in to me now is from a client. But here are some things to think about when testing price.

1. Don’t just test lower prices. Most of my clients want to test lower prices when I suggest a price test. It’s good to test lower prices, but stop doubting your product. It’s possible that more people may want to buy your product if you give it a HIGHER price. A price says something about your product to the customer. If you price it too low, they may suspect it’s low quality and pass on it. Raising the price may convince MORE people to buy.

2. Test the “dollar” digits first. Some people like to test $99.97 versus $99.95. Instead, I’d test $97 versus $95. Michel Fortin backed this up when he told me numbers on the dollar side of the decimal point provide the most answers and profit increases.

3. Don’t just stick with “7″. Glyphius, a software that analyzes profitable copy, HATES the number “7.” I don’t have stats to back that up, but I do have promising results with numbers other than 7. So don’t just test $57, $67, $97. Mix it up and test $57 versus $55, $59 and more. If you believe “7″ has a psychological impact, you must believe other numbers have an impact as well. Find out for yourself what digits are best.

4. Pay attention to visitor value over conversion rate. On one test I’m conducting one price is solidly beating a price $30 higher. The problem is, the 20% higher conversion doesn’t beat out the 33% higher profit from each sale. So consider getting less sales at a higher profit. Unless…

5. Unless, you have backend products that are selling. If you can get more customers at a lower price and have backend products to sell them, you have to factor that in to the above equation. Can the backend sales make up for that initial loss in profit?

If you’re not currently testing, I recommend http://www.muvar2007.com.

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