Raising Price Increased Sales by 300%
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!
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!
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