A Discovery About Price
He says the higher the prices you charge the less refunds you get and the less you charge the more refunds you get. He said he didn't know the reason - but said that what he has learned is that when you charge less you have to constantly reassure the customers that they made the right decision and that you care about them. He said be available to answer their questions.
I've been having a talk with someone about this. I've been in the stock market niche for ten years and have charged from $55 to $495 and found what he says is totally true.
For the exact same product if I have an option of $55 a quarter or $175 a year the people who pay more refund less - and not only that but the people who pay less tend to be more mean or aggressive in their support emails.
In my business one of my friends says these people are just deadbeats that want something for nothing. Like they sign up get your stuff and get the refund.
Thinking about this after watching Kern talk about you need to reassure the people I've come to a revelation that this isn't the case at all. That what is actually happening is that for whatever reason when someone pays a lower price they trust you less than if they pay a higher price. They are more skeptical.
Therefore after they buy they have a tendency to doubt more and imagine reasons to think they made the wrong decision. Where when someone pays more they are more confident about their decision.
One can wonder is it because the people have less money and that is why or is it the price itself that effects their customer behavior. LIke does it make sense that a product that promises to make them money and change their lives cost less than $100?
Other cheap products are crap they bought so they are on guard.
The bottom line is I took from this the idea that you need to rally overdeliver and reassure people when they pay low prices. Ironically it takes more to make someone who paid a cheap price happy about their purchase decision than someone who pays more.
nothing to see here.