dr2010

p { margin-bottom: 0.1in; line-height: 120%; }a:link { } Hello I read an article on Price Testing at

Price Testing | Pricing | Pricing Plan | AB Split Testing.

I found it to be an interesting article on price testing. But reading the article left questions in my mind. That I asked the person who wrote the article.

In the article he said that:

"For a product, a service, or a subscription, one key goal is to find the price that is "too high." In other words, keep raising the price until the results clearly show you are charging too much. Then slowly inch back from there until you find the highest price the market will bear, giving you the highest revenue on sales."

If you people don't mind I'm going to ask you the same questions. So please answer each question to your best ability.

Here I go:

How do you determine how frequently to run your price testing to find the price that is too high for your product?

On average how frequently do you run a price test to find the price that is too high for your product?

Another question I have is; how do you go about keep raising prices until the results clearly show you that you are charging too much; then slowly inch back from there until you find the highest price the market will bear, giving you the highest revenue on sales?

Do you run a price test every week or every month until you see the results that clearly show that you are charging too much for your product?

Then the next week or month after the week or month that you see the results that clearly show that you are charging too much for your product; do you change the price back to the highest price the market will bear to pay for your product?

What do you think the author meant by "slowly inch back from there until you find the highest price the market will bear, giving you the highest revenue on sales"?

If you were following the author's advice; what would your steps consist of slowly inching back from there until you find the highest price the market will bear, giving you the highest revenue on sales?

Please explain.

If you are price testing every week or every month; raising your prices; won't that make you look unprofessionally to your customers; to see you continually raising your prices for your product?

When you are price testing different prices; how do you keep from ticking off your customers?

If your customers find out that they paid a higher price for your product than other customers who paid a lower price for your product; how do you handle that situation?

My last question is how do you prevent your customers from being angry over finding out that they paid a higher price for your product than what other customers have paid for your product?

Please answer every question. Thank you Warriors.

Have a happy New Year.

dr2010

Can anyone answer my questions. Maybe this wasn't the right forum.

savidge4

Here is how I test this. I start with a price say $10. I then have a set benchmark to run my test with. I personally increase my price by a set amount in the test process. So the first test would be 10 vs 15. then assuming 15 won 15 vs 20 etc etc.

Specifically what you are looking for is 2 fold. The amount of earnings per conversion, and the number of conversion.

An example. I am getting 4 conversions per 100 at $10. but I am getting only 1 conversion per 100 at $20 ( 4x$10 ) is ultimately more than ( 1x$20 )but in he middle of this I get ( 3x$15 ) the $15 conversion is yielding $45 overall as compared to the $10 conversion at $40.

So the $10 offer converted better.. but the $15 offer at the lower conversion rate returned greater financial yield.

Make sense?