$500 product + $5 a month for email support: Will it suppress conversions?

by Delta223 6 replies
Anyone know if those little micro charges harm conversions on a mid ticket purchase?

Someone will ask "why not $30 a month" or something more proportionate. I prefer income stability for rebills. Sub $10 charges last a lot longer than higher ticket ones.
#main internet marketing discussion forum #$500 #conversions #email #month #product #support #suppress
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  • Profile picture of the author Kay King
    Sub $10 charges last a lot longer than higher ticket ones.
    Is that based on your own testing - on testing of a $500 product? That claim is based on theory that people don't miss such a small amount and therefore will not cancel. I've seen that claim when the discussion is about membership sites.

    When I saw your question - my own question was why you would charge for email 'support' for a $500 product. $5 for 'support' for a product in that price range cheapens the product in MY mind.

    Curious to see what others think.
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  • Profile picture of the author SARubin
    Having no idea what your product is... or whom your market is... makes any answer you get here, little more than speculation (a guess)

    Without sounding too obvious... You really need to test it with your own market, to find out which offer(s) they respond to.


    That being said, here's my initial thought...


    If I pay you $500 for a product, I'd expect to get at least "some" support for free (30 days? 60 days? Something?) At least until we get the bugs worked out, and until I get over any learning curve with using your product.

    That's called "customer support" and if you don't offer me at least that much, you're putting a wall up between your product... and my wallet.


    After the initial support, I'd consider paying a monthly retainer (if it's warranted)


    As far as $5 a month for email support... It depends on the value of the support.

    I wouldn't give you 5 cents a month, for support that doesn't provide answers to my problems.

    On the other hand... I'd pay $500 a month, for support that will add $50,000 a year to my bottom line.

    Hope that makes sense to you?


    Anyway, back to my original advice...

    You really need to test it with your own market, to find out which offer(s) they respond to.

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  • Profile picture of the author Steve B
    Originally Posted by Delta223 View Post

    Sub $10 charges last a lot longer than higher ticket ones.

    Where does this come from? Is this your personal experience or are you just making this statement because of something "you heard on the Internet?"

    Run the numbers. At $10/month, it will take over 4 years to reach $500. At $5/month it takes 100 months or 8.3 years.

    Regarding the $5/month for email support . . . IMO it's wrong on two levels.

    First, it doesn't make sense for you. It will take you time and effort to bill, keep records, answer emails, etc. It may cost you more to administer this little add-on than it's worth.

    Second, it doesn't make sense for the customer. If he spends $500 with you, you're going to quibble about giving him a little support for his purchase? To me, this is almost a slap in the face for the customer. Don't tell me you can't absorb a few minutes of your time without charging this needless fee. Charging monthly for support makes the customer think . . . "Oh no, the product creator knows I'm going to have problems with using my purchase!" It makes you seem like a greedy, money grubbing merchant that is trying to squeeze every last penny out of the customer.

    You buy the product . . . the creator stands behind it and helps you as part of your purchase.

    Steve
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  • Profile picture of the author Delta223
    I didn't expect the consensus that $5 a month for support was a devaluer but I realize this was poor communication on my part. By support I mean extended support, like the lowest level of a group coaching except the initial coaching videos and exercises are in the course itself. Anyways just a thought.
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  • Profile picture of the author tritrain
    You could do one-time support fees instead. It depends on the value of your time and if you could answer most issues in one or 5 emails. Or, if you could resolve most issues within a couple weeks, charge a one-time payment for a month.

    I wouldn't nickel and dime them. If you want to offer continued support, then charge them a flat rate fee of $60 for a year. It's like an extended warranty. Most people won't use it, but it provides peace of mind. Only available at the time of purchase. Otherwise it'll cost a fair amount more.

    Also, for basic questions, provide an FAQ.
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  • Profile picture of the author DIABL0
    I would never do that.

    If you're not satisfied with $500 and providing adequate support, then charge more.
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