7, 17, 27, 47, 97 . . . etc . . .

13 years ago

Originally Posted by maestoso

Why have the internet marketing gods deemed 7, 17, 27, 47, 97 (and so on) the true prices?

The theory goes like this.

Emotional brains think in fives, and rational brains think in tens.

So when sales copy engages your emotions, your emotional brain processes the price and turns it into something that ends in a five. That means one and two turn into a zero, three through seven turn into a five, and eight and nine turn into a ten.

Then your rational brain gets hold of it. Your rational brain rounds fives down to zero, no matter what your teachers taught you. So if the sales copy DOESN'T engage your emotions, anything from one to five turns into a zero, and anything from six to nine turns into a ten.

So you want the sales copy to engage the emotions, forcing the emotional brain to preprocess the price into a 0, 5, or 10 before the rational brain gets it. If you can get the emotional brain to turn the price into a 5 before the rational brain gets it, the rational brain will turn that 5 into a 0.

So when your product is priced at $15, the rational brain will treat it like it's priced at $10. That means more money in your pocket.

Similarly, when your product is priced at $17, the emotional brain will treat it like it's priced at $15. So by engaging the emotions, you get to tack another $2 onto every sale for no reason at all, and it doesn't impact conversions.

That said...

In theory, there is no difference between theory and practice. In practice, there is.

Do your own tests. Most people price their products to end in 7 just because everyone else does. They haven't tested different prices, and they aren't really trying to figure out what works best. They just figure if everyone else is doing it, then it must be the best thing to do.

[ 2 ] Thanks
2 replies

Signature

"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers

{{ DiscussionBoard.errors[4306171].message }}

Mark Andrews

Banned 13 years ago

Originally Posted by CDarklock

The theory goes like this.

Emotional brains think in fives, and rational brains think in tens.

So when sales copy engages your emotions, your emotional brain processes the price and turns it into something that ends in a five. That means one and two turn into a zero, three through seven turn into a five, and eight and nine turn into a ten.

Then your rational brain gets hold of it. Your rational brain rounds fives down to zero, no matter what your teachers taught you. So if the sales copy DOESN'T engage your emotions, anything from one to five turns into a zero, and anything from six to nine turns into a ten.

So you want the sales copy to engage the emotions, forcing the emotional brain to preprocess the price into a 0, 5, or 10 before the rational brain gets it. If you can get the emotional brain to turn the price into a 5 before the rational brain gets it, the rational brain will turn that 5 into a 0.

So when your product is priced at $15, the rational brain will treat it like it's priced at $10. That means more money in your pocket.

Similarly, when your product is priced at $17, the emotional brain will treat it like it's priced at $15. So by engaging the emotions, you get to tack another $2 onto every sale for no reason at all, and it doesn't impact conversions.

http://paulhancox.com/marketing/mark...f-test-prices/

Thanks

{{ DiscussionBoard.errors[4306725].message }}

Alexa Smith

Banned 13 years ago

Originally Posted by CDarklock

Most people price their products to end in 7 just because everyone else does. They haven't tested different prices, and they aren't really trying to figure out what works best. They just figure if everyone else is doing it, then it must be the best thing to do.

^^^^ This ... exactly.

People just assume that (a) someone else "must have tested it", and (b) whatever they tested and however they tested it, their results are going to apply to "my" sales page ...

:rolleyes: :p

Meanwhile, among the split-testing I've seen among people whose sales pages I wrote myself, a short report sold more copies at $10 than it did at $7 (I couldn't persuade the client to test $12 but I strongly suspected that it would have sold even more still), and a longer e-book sold significantly more copies over a 3-month period at $39 than it did at $37.

[ 1 ] Thanks

{{ DiscussionBoard.errors[4307427].message }}

Joshua N. Rabon

13 years ago

Well CDARLOCK, I've never heard that theory before. Is that for real?

I've heard that it has been tested to out pull.

Being a copywriter I believe in testing for oneself and the power of the offer.

Always remember that the most important thing is the offer. It should get the prospect juiced before price is even mentioned.

But I wholeheartedly agree with CDARLOCK about most people using it because every one else does.

Also, no matter what # the price ends in, or persuasive triggers used, if the offer is irresistible and the price or the copy doesn't **** that up, your good to go.

Another thing, ( for newbies ) the offer is:

What they get (both features & benefits), How they get it ( time frame & delivery method ) and What they pay (think & illustrate what it is worth to them in both tangibles & intangibles). The goal is to make it a no-brainer at a price point that makes sense given your unique situation & objectives.

Thanks
1 reply

Signature

For Free Tips & Tools For Tuning Into The Reality You Desire Visit My Blog
http://http://realitytuningsecrets.weebly.com/

{{ DiscussionBoard.errors[4306332].message }}

CDarklock 13 years ago

Originally Posted by Joshua N. Rabon

Well CDARLOCK, I've never heard that theory before. Is that for real?

Yep. There have been studies where they showed people prices while discussing the products in different ways, and emotional language led them to report prices as multiples of 5 while intellectual language led them to report the same prices in multiples of 10.

I still don't think any lab study accurately reflects the way customers think, let alone the way YOUR customers think. There's good science behind this pricing, just like there's good science behind the colours to put on your sales page, just like there's good science behind the right date and time to launch a WSO.

But in the end, you just have to pick a price and put up a sales page and launch. Until you do that, you are not going to accomplish jack squat. Don't overthink it, don't overanalyse it, and stop wasting your time on all the research and studies and looking for the "perfect" price and colours and launch time. Just launch the damn thing.
- Thanks
- 1 reply
Signature

"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
{{ DiscussionBoard.errors[4306436].message }}
- Mr Steve 13 years ago
  
  Also, the number 7 is deemed a lucky number in many parts of the world. That could be a legit reason for this type of pricing?
  
  Thanks
  
  {{ DiscussionBoard.errors[4306511].message }}

Don Schenk

13 years ago

I first came across the concept twenty something years ago in Ted Nicholas' newsletter. He began testing $147 against $149, $497 vs $499. His conclusion was the prices ending in 7 did better.

It looks like Caliban found the reason.

:-Don

Thanks

Signature

Studies prove happier people have massively more success. It has worked for me. Use this one trick too... Click Here

Total Competition Stomper - Simply the most powerful tactic your IM or Offline business will ever use... See it here!

{{ DiscussionBoard.errors[4306567].message }}

stingrays06

13 years ago

Thats an interesting theory on pricing CDARK....have never heard that one before.

I have read about the studies on the color of sales page headlines, the best time to launch a WSO, and even the best time to send out an email to your list, but I couldn't agree with you more that its just best to take action. Then, definitely do some split testing afterwards...

Also, if you're selling something such as an ebook that has no cost of production, just set your price equal to the amount where price x quantity yields the greatest amount.

Thanks
1 reply

{{ DiscussionBoard.errors[4306571].message }}

magnates

13 years ago

Originally Posted by stingrays06

Thats an interesting theory on pricing CDARK....have never heard that one before.

I have read about the studies on the color of sales page headlines, the best time to launch a WSO, and even the best time to send out an email to your list, but I couldn't agree with you more that its just best to take action. Then, definitely do some split testing afterwards...

Also, if you're selling something such as an ebook that has no cost of production, just set your price equal to the amount where price x quantity yields the greatest amount.

Yeah , I have never heard your theory either , CDarklock

Jerry Clark also tested pricing point and found that numbers that ended with 7 gotten the most conversion provided the offer is no -brainer

Just common sense , says you test yourself to be really sure . People change , mentalities change

Why not $9.95,$19.95,$29.95 or $199.95

or $4.95,$14.95.$24.95 or $149.95

or $$5.81,$15.81,$15.81,or $158.81

Sometimes it is just good to test and find out yourself

Thanks

Signature

==>[[FREE WSO]] -These Five Powerful Strategies Will Solve Your List Building Problems For Good !!

==>[**Â£7 WSO**] - 7 Ways To Drive An Extra 100,000 Targeted Visitors To Your Website

{{ DiscussionBoard.errors[4306686].message }}

NestZone

13 years ago

That is a theory only the smart guys have been able to make away with. Prices of 27, 47 & 97 have often make away with the market. A person targeting a price of 27 will definitely make more sales than a 24 or 25 price bracket. I have watch the magic of 5's mostly in web hosting which is the .95 & .99 fraction behind digits.

Thanks

Signature

$0.50/month SSD Web Hosting (cPanel & Windows/PLESK)
Perfect Money, Bitcoin, Payeer, Skrill, Neteller, WMZ, Monero... Payments

{{ DiscussionBoard.errors[4307537].message }}

Jelle Kaldenbach

13 years ago

Jelle's words of wisdom (

?)

Use the ...7 in the IM niche and the ...9.95 in other niches. People are used to the 9.95 as an end, because everybody in the offline world does. They think other people think that it's cheaper, but by that also think it's cheaper (that's what I think, at least). And no, that wasn't my attempt to get as most "think"s in one sentence. By the way, the same for the ...7. Internet Marketers think other internet marketers think that that's cheaper, but because of that they also think it's cheaper.

Wow. Never wrote such an awkward post, but it was in my head and tried to type it out.

~Jelle

Thanks

Signature

[ATTENTION Offline Marketers] This is the exact system I used, when I was 15 year old, to bank in $2,871.40 within my first 25 days in Offline Marketing!

{{ DiscussionBoard.errors[4307599].message }}

BIG Mike

Banned 13 years ago

[DELETED]

{{ DiscussionBoard.errors[4307729].message }}

maestoso 13 years ago

Thanks for all your excellent responses!

A mere curiosity of mine developed into quite an interesting discussion of marketing techniques, psychology, and the importance of testing.

I learned a ton!
- Thanks
{{ DiscussionBoard.errors[4309801].message }}

7, 17, 27, 47, 97 . . . etc . . .

Trending Topics

Can I change my username?

Check out DeepL Write

Is Wordpress Website Secure? - Emmanuel Katto

Newbie

How did you turn it all around?