Raising Price Increased Sales by 300%

6 replies
Maverick_ made a post advising people to charge more for their info products. I wanted to expand on that topic and tell you about my experience with tangible products.

I was selling medical devices. My devices were the same as the ones being sold for thousands of dollars by medical professionals. We all got them from the same sources, but they tacked on huge dollars when selling to the consumer. My price point was around $199.

I did well at those prices, but not as well as I thought that I should be doing. I tried a little experiment and jacked the price up to $499. This was still well below what the industry standard was.

I replaced the $199 with $499 in my ads. The result: a 300% increase in sales!

This is an example of perceived value. My demographic must have felt that $199 was too low to be a legitimate alternative to the thousands they would spend at clinics. The $499 price was still affordable, but not "cheap", so it must be a good product!

Do not underestimate perceived value!
#300% #increased #price #raising #sales
  • Profile picture of the author jbento
    Just a word: you're quite right. Perceived value makes a huge difference. And brands know that, right?


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  • Profile picture of the author greggomatic76
    Same experience here with very similar numbers. I had a product I was selling for $179, my nearest competitor in the tiny niche was selling for $499. I raised my price to $399 and saw about a 15% increase in sales. About knocked my socks off.

    A lesson I wish I would have learned all those years before when I was selling it for $179! Lot of profits I left out there. Doesn't work for all niches, but depending on competitors and quality, many low-price products can use it perfectly.
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  • Profile picture of the author MichaelHiles
    There's a large contingency of internet marketing folks who don't necessarily believe in (or maybe understand?) segmentation and positioning. Small, startup entrepreneurs must differentiate and segment to create products that appeal to a specific target. That's because they don't have the financial resources to become a ubiquitous brand that competes against other, established giant competitors. Segmentation as a market penetration tactic is extremely important - as opposed to the "be all things to everybody for really cheap" approach.

    You can't "out-Walmart" Walmart.

    In the internet marketing world, you can't "out-low priced mass flooded market" the mass flooded market.

    Why isn't Tesla Motors producing a mass consumer sub-compact car for really cheap?
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    • Profile picture of the author Adam Nolan
      Heyyyyy thanks for the support buddy

      I'm REALLY excited for our next price jump. Currently we're charging around 5K for our video marketing service... I'm going to bump it up to 10K soon and watch my income double.

      Congrats on the HUGE price increase & number of sales!

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  • Profile picture of the author richgrad
    I just got back from Bali and they were selling DVDs for about US$1... Hey they are dirt cheap but I'm sure they are pirated...

    It's true that people will look at cheaper things with suspicion... even if you can get a legal disc for a much lower price for eg... you wouldn't want to sell it near that price because people are just going to assume they are fake.
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