What is the significance of the $37 price point?

It is a case of monkey see, monkey do. People see these Click-bank launches and immediately assume that they should charge the same because there is something special about that price point. In reality you need to test for yourself what your target market is willing to pay.

There are also a lot of studies that show price points which end with seven convert higher so people automatically use numbers like $37 or $17 etc. thinking that they will get the highest conversions possible.

Again, you must test your price points, you may be surprised what points convert more.

-Chris

No significance. Just alot of traffic that's getting the sale. You could price a product at $39 and it would still get sales. The lower the price though... the more sales you will most likely make.

It's all psychology. Most people are used to seeing either a flat even rate of $40 or $30, or seeing the typical $19.95 or $29.99 for example. But when you put an odd number up there, it makes them mentally think they're getting it for less than they would expect to, since again, the norm would be $19.95, or $29.99, or $50.00.

I had 6 sales on my sound kits a few days ago and I put an odd number up like $15.51... I think it gave the impression of even greater discount value instead of me charging $19.99 for it. And yeah, the copy and do probably falls into this category as well, since so many IMers now use the 7 at the end of their figures to sell... $17, $27, $47, $197... it's become the IM'ers trademark to end it with a 7 I suppose. lol. Whatever works though as long as it works, that's what I feel anyway.

It's originally based on scientific principles which many people (including myself) find dubious.

1. Sales copy is designed to excite a reader's emotions, which engages the right side of the human brain.

2. This side of the brain likes to think in fives. When it sees a seven, it automatically rounds this down to a five, then passes the resulting figure to the left side of the brain which handles logical decisions. So that $37 is first converted to $35.

3. The left side of the human brain likes to think in tens. When it sees a five, it automatically rounds this down to a zero, so it turns $35 into $30.

4. The current "impulse price point" is $30. If the right side of the brain is deciding whether to spend $30, the majority of people do not think too much about it because it is small enough not to matter.

So in order to make maximum profit in minimum time, you add $7 to the impulse price point. Adding only $6 to it will not significantly increase sales, but adding $8 will reduce them.

However, this is based on a fundamental idea of customers being human brains, not human beings. There are plenty of people in the business world who think of their customers differently and use different pricing schemes, but on the internet, pricing is heavily skewed toward this philosophy.

A lot of people are also not really aware why this pricing is used, they simply use it because other people use it, under the belief that if so many people are doing it - well, it must work!

A lot of other people are using prices that end in seven because their customers expect prices to end in seven, and are suspicious of your credentials if they don't. These people are usually in the marketing niche themselves, and their customers are other marketers. These people are using the price ending in seven as a "signaling device," social proof that they know what they are talking about.

Because people like to make assumptions rather than to test things.

I've seen only three split-tests, in detail, myself, involving the number "7" in prices.

One was a pair of e-book sales pages, with traffic from the same sources divided randomly between them. The book sold more copies at $10 than it did at $7. (I wanted the client to test $12 as well, but he wouldn't: I think it would have sold more, again, but as it turns out, I have no evidence to offer for this belief).

One was something similar, with a much bigger product, and the figures were $37 and $39 (too close together to be worth split-testing, you might think - as I did? Not for my client, apparently) ... $39 sold more copies than $37. (I believed that $42 would have sold more than either, but can't prove it, as it was never tested).

The other was a sort of subscription information service, for which the client at first wanted the monthly repeat payments to be $7. I persuaded him to split-test test that against $14, and $14 actually converted better (very slightly fewer customers, it's true, but a lot more income).

I don't doubt, for a moment, that other people have tested prices ending in "7" and that they've converted better.

My point isn't that I think those people were wrong, at all: it's simply that you have to test for yourself.

Hi, I don't know about the specific number of $37, but CDarklocks explanation makes a great deal of sense to me. I know from personal experience with subscription sites that price points are important. We launched a membership site 3 years ago at a very low (for our industry) price point of $29 a month. We got a lot of sign ups which was great but then started to think we were way too cheap, so for new members we raised the price to $49 which is still inexpensive for what we provide. Result? New sales halved AND we still have more original $29 members after 3 years than the higher ticket price. Its a bit of a minefield and as a previous poster pointed out often you end up doing what everyone else does. One way to test is put up a site and use adwords for traffic and see what "sign ups" you get without actually completing the sale? Years ago (so I am told pre internet days the off line marketers would place ads in newspapers for a product that didn't exist. If enough people responded to the advert, they then made the product, same idea, more modern version? Marc

When pricing a product $39, people automatically initiate the fact that it's $40 in their mind. When it's $37, it's just 2 dollars under and does not turn on brain signals that the product is $40, but rather that it's in the $30's range. In conclusion, it makes more sales because it's 'considered' 25% cheaper.

There is nothing special about $37, some set that price point just because they saw others using it. You just have to test with the price point you want.