Who sets these strange prices?

Paul D Brady · 11-13-2009, 05:50 AM

Hi all Warriors,

As a frustrated online marketer and someone who is now writing two ebooks to promote, there has always been one burning question which I still have not found the answer to.

Who says every single product or program has to be either $27, $47, $97 or any other price ending in 7?

Maybe I've missed the point, but I plant to offer my products for $20 or $25 - easier for me to calculate...

Cheers to all

nota-bene · 11-13-2009, 05:56 AM

$7 is the new 99c!

IMO it is all to do with the psycology of pricing and the perception of savings! Consumers maybe wised up to the fact that $9.99 was still $10, whereby $7 IS under $10 and therfore they can compute the saving!

dmarze · 11-13-2009, 06:54 AM

I never price my products at $27, $47, $97. Go with the price you feel is right.

D.Marze

mr2monster · 11-13-2009, 06:59 AM

As always.... testing is the only way to find out what price is best for your product.

the $7 prices were essentially copied from people that "had tested" and found a better result by using them.

my intuition says that it's not the most effective anymore since everyone is doing it.

"Whenever you find yourself on the side of the majority, it's time to pause and reflect." by Mark Twain

Fernando Veloso · 11-13-2009, 07:03 AM

I did a small test and discovered the $9.99 had more sales then the $7.

But I didn't ask people WHY they choose the first one... and the test was so small I can't figure if it was relevant or not.

jagsenghera · 11-13-2009, 07:07 AM

These price points have been tested and proven to convert more but I suggest you test different price points in your market. Its all about testing what works.

codelover · 11-13-2009, 07:08 AM

I think the idea is to create a sense that the product has been priced precisely because people tend to trust more in numbers like that than round numbers. But like the 9.99 price tag it has been overused so it has lost some of its original purpose.

mark z · 11-13-2009, 07:20 AM

Someone said those are "tested", best performing prices.
But also, we all know trends are changing.
Good old $9.99 became $7.
Who knows what`s the next "tested" price?

Anyway, I suggest you to test which works best in your projects case.
Maybe you`ll become a game changer?

Maybe to launch $9.97?
Nah, ... they`ll think you`re shaving for those 2 cents lol

davtom · 11-14-2009, 04:30 AM

Not all of my products have a 7 at the end of the price.

I haven't tested, but somebody who does good volume in internet marketing has told me that he tested the 7 figure and found that it made no difference. However, he uses 7 because it is what affiliates are used to seeing, and it keeps things simple for him.

andwings2go · 11-14-2009, 08:01 AM

Quote:

Originally Posted by Paul D Brady

Who says every single product or program has to be either $27, $47, $97 or any other price ending in 7?

I ran some cell phone stores way back in the long long ago when the economy was strong, and I purposely avoided any rounded prices and the ancient $9.99. I couldn't have something simply marked $7 it would most certainly be $6.99. Even $7.00 looks unprofessional to me. Instead of the $9.99, I would go $10.99 and custs would still call it 10 bucks.

So, how much of real world marketing strategies work here in this new realm that I discovered last night and have been up all night reading about?

DogScout · 11-14-2009, 08:14 AM

A friend of mine tested $9.95 and $10 even. The $10 even converted at 5 times the rate of $9.95 all other things being equal. Of course that was in his niche & with one product. Each niche and each product would have it's own best converting price. Test, test, test.

1 is lower than 9, no matter how many zeros are after it. Lol.

Fernando Veloso · 11-14-2009, 08:27 AM

Don't forget the GEO side of it:

In US/CAN/Uk etc the $7 is very common, while down here the most common is the .99.

My wife is always teasing me with this: stop the 7 thingy and change prices to 9.99, 19.99 or 29.99.

um1001 · 11-14-2009, 08:32 AM

If it's an IM-related product, I would price it ending in 7 - it's something Internet Marketers have conditioned themselves to pay.

The average consumer hasn't been conditioned, so if you have a product targeting "everyman" then set it with 9:

Eliminate your ugliness gene now! $19.95

Get Ranked #1 in Google The Day Before Yesterday Using Outsourcing! $17

Paid Surveys · 11-14-2009, 09:07 AM

Pick a new number, i agree that $7 has become the new $9

dave147 · 11-14-2009, 09:09 AM

Has anyone tested $29.95 instead of $27

11-13-2009, 05:56 AM	#2
nota-bene HyperActive Warrior War Room Member Join Date: Aug 2009 Location: London Town Posts: 178 Thanks: 61 Thanked 30 Times in 30 Posts Social Networking	Re: Who sets these strange prices? $7 is the new 99c! IMO it is all to do with the psycology of pricing and the perception of savings! Consumers maybe wised up to the fact that $9.99 was still $10, whereby $7 IS under $10 and therfore they can compute the saving!
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11-13-2009, 06:54 AM	#3
dmarze Advanced Warrior War Room Member Join Date: Apr 2008 Location: USA Posts: 659 Thanks: 14 Thanked 67 Times in 29 Posts	Re: Who sets these strange prices? I never price my products at $27, $47, $97. Go with the price you feel is right. D.Marze
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11-13-2009, 06:59 AM	#4
mr2monster Less Think More Do War Room Member Join Date: Nov 2007 Location: AZ Posts: 1,253 Thanks: 263 Thanked 328 Times in 184 Posts Social Networking	Re: Who sets these strange prices? As always.... testing is the only way to find out what price is best for your product. the $7 prices were essentially copied from people that "had tested" and found a better result by using them. my intuition says that it's not the most effective anymore since everyone is doing it. "Whenever you find yourself on the side of the majority, it's time to pause and reflect." by Mark Twain
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11-13-2009, 07:03 AM	#5
Fernando Veloso Portuguese Warrior War Room Member Join Date: Nov 2008 Location: Good Old Europe Posts: 3,488 Blog Entries: 6 Thanks: 1,311 Thanked 810 Times in 556 Posts Social Networking Contact Info	Re: Who sets these strange prices? I did a small test and discovered the $9.99 had more sales then the $7. But I didn't ask people WHY they choose the first one... and the test was so small I can't figure if it was relevant or not.
	Portugal Internet Marketing Since 2004. Fernando Veloso \| Seo Portugal \| Empresa SEO

11-13-2009, 07:07 AM	#6
jagsenghera Warrior Member Join Date: May 2009 Posts: 27 Thanks: 1 Thanked 6 Times in 3 Posts	Re: Who sets these strange prices? These price points have been tested and proven to convert more but I suggest you test different price points in your market. Its all about testing what works.

11-13-2009, 05:50 AM	#1
Paul D Brady Active Warrior War Room Member Join Date: Jan 2009 Location: Austria Posts: 53 Thanks: 0 Thanked 4 Times in 4 Posts Contact Info	Who sets these strange prices? Hi all Warriors, As a frustrated online marketer and someone who is now writing two ebooks to promote, there has always been one burning question which I still have not found the answer to. Who says every single product or program has to be either $27, $47, $97 or any other price ending in 7? Maybe I've missed the point, but I plant to offer my products for $20 or $25 - easier for me to calculate... Cheers to all

11-13-2009, 07:08 AM	#7
codelover Warrior Member Join Date: Nov 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	Re: Who sets these strange prices? I think the idea is to create a sense that the product has been priced precisely because people tend to trust more in numbers like that than round numbers. But like the 9.99 price tag it has been overused so it has lost some of its original purpose.
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11-13-2009, 07:20 AM	#8
mark z Banned War Room Member Join Date: Oct 2009 Posts: 226 Thanks: 19 Thanked 26 Times in 19 Posts	Re: Who sets these strange prices? Someone said those are "tested", best performing prices. But also, we all know trends are changing. Good old $9.99 became $7. Who knows what`s the next "tested" price? Anyway, I suggest you to test which works best in your projects case. Maybe you`ll become a game changer? Maybe to launch $9.97? Nah, ... they`ll think you`re shaving for those 2 cents lol

11-14-2009, 04:30 AM	#9
davtom Active Warrior War Room Member Join Date: Feb 2006 Location: United Kingdom. Posts: 48 Blog Entries: 1 Thanks: 7 Thanked 11 Times in 9 Posts	Re: Who sets these strange prices? Not all of my products have a 7 at the end of the price. I haven't tested, but somebody who does good volume in internet marketing has told me that he tested the 7 figure and found that it made no difference. However, he uses 7 because it is what affiliates are used to seeing, and it keeps things simple for him.

11-14-2009, 08:14 AM	#11
DogScout Self Unemployed War Room Member Join Date: Jun 2009 Location: Florida Posts: 2,343 Thanks: 697 Thanked 628 Times in 373 Posts Social Networking	Re: Who sets these strange prices? A friend of mine tested $9.95 and $10 even. The $10 even converted at 5 times the rate of $9.95 all other things being equal. Of course that was in his niche & with one product. Each niche and each product would have it's own best converting price. Test, test, test. 1 is lower than 9, no matter how many zeros are after it. Lol.
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11-14-2009, 08:27 AM	#12
Fernando Veloso Portuguese Warrior War Room Member Join Date: Nov 2008 Location: Good Old Europe Posts: 3,488 Blog Entries: 6 Thanks: 1,311 Thanked 810 Times in 556 Posts Social Networking Contact Info	Re: Who sets these strange prices? Don't forget the GEO side of it: In US/CAN/Uk etc the $7 is very common, while down here the most common is the .99. My wife is always teasing me with this: stop the 7 thingy and change prices to 9.99, 19.99 or 29.99.
	Portugal Internet Marketing Since 2004. Fernando Veloso \| Seo Portugal \| Empresa SEO

11-14-2009, 08:32 AM	#13
um1001 aka Jack Morrison War Room Member Join Date: Oct 2009 Posts: 191 Thanks: 40 Thanked 34 Times in 29 Posts	Re: Who sets these strange prices? If it's an IM-related product, I would price it ending in 7 - it's something Internet Marketers have conditioned themselves to pay. The average consumer hasn't been conditioned, so if you have a product targeting "everyman" then set it with 9: Eliminate your ugliness gene now! $19.95 Get Ranked #1 in Google The Day Before Yesterday Using Outsourcing! $17
	-- Jack Morrison / um1001

11-14-2009, 09:07 AM	#14
Paid Surveys HyperActive Warrior Join Date: Aug 2008 Posts: 192 Thanks: 2 Thanked 13 Times in 13 Posts	Re: Who sets these strange prices? Pick a new number, i agree that $7 has become the new $9
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11-14-2009, 09:09 AM	#15
dave147 Platinum Warrior Member War Room Member Join Date: Mar 2009 Location: AU Posts: 2,729 Thanks: 475 Thanked 332 Times in 270 Posts	Re: Who sets these strange prices? Has anyone tested $29.95 instead of $27
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