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What's my best pricing strategy???

by Nina Petrov
6 replies
I'm trying to figure out what would be the best pricing strategy. This is for a membership site.

Currently I have:
57 for 6 months
127 for 24 months
197 for Lifetime

Most just order the 57 which bites because it really doesn't amount to much.

I had a couple price change options that I was considering:

OPTION 1)

57 for 6 months
77 for 24 months
97 for Lifetime

So that way people comparing would thinking "might as well just go with the 97 since it's only a bit more" and they'd be getting so much more! The idea being I'd maybe get more at 97.

OPTION 2)

37 per month
or
97 for Lifetime

This is a popular option that I seen on a few other membership type sites.

Or is there some other strategy that I could use? As far as all these other options such as backend products and continuity etc etc. I will get to those eventually. But I don't have time right now for those. I'm just concentrating on trying to pin down a pricing strategy that might work best?
#pricing #strategy
  • Profile picture of the author Gambino
    I used to run an ecommerce site that sold a product for $47, $97 and $147. Over 70% of customers bought the $97 option. I think studies have been done that show the same results based on the perceived cost/value of the middle option.

    I think your biggest issue is the length options, not the price options. Your customers may not have an issue paying $127, but they may have an issue committing to 24 months or more.

    I would test an option that makes them all the same length, but with the higher priced options having a bit more value (more lessons, more tools, more videos, etc).
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    • Profile picture of the author Nina Petrov
      Originally Posted by Gambino View Post

      I used to run....ll the same length, but with the higher priced options having a bit more value (more lessons, more tools, more videos, etc).
      Okay thanks, but no I can't go changing much in terms of what a person gets. It's too much development.
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  • Profile picture of the author Frank Donovan
    With the caveat that we don't know how attractive a lifetime membership is (because we don't know your product or service), try a pricing structure like this:

    1 month = $39
    6 months = $125
    12 months = $129

    Here's the reasoning:

    http://www.economist.com/blogs/democ..._of_irrelevant
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  • Profile picture of the author writeaway
    Option 2 is more predictable.

    People are familiar with such packages.

    It's not much of a leap or a challenge to most consumers.
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  • Profile picture of the author Regional Warrior
    Nina the only true way to find a solution to the problem would be to A/B test them !

    But I think Frank has the answer so that may be a starting point

    Jason
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  • Profile picture of the author Manoj V
    I have observed that the figures $27 and $47 for membership pricing work very well. It could be something to do with the numbers.

    Don't give too many options - maybe two options. If you want to give a third option make it a no brainer. For example, $47 could be for a starting quarterly membership, $97 for 6 months and $107 for a yearly membership.

    Why lose out on a recurring income?
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