Have Your Conversions Dropped When Your Raised the Price From $17 to $27? UPDATE

29 replies
I've always loved selling cheap reports. I fell like I am giving a lot of value at $10 and $17 (the price of my reports) and they're easy to create.

However, I've started used adwords again (not banned thankfully) and the good news is that I am making sales. The bad news is that I'd be making about $100 extra per day if I raised my price from $17 to $27.

I Know that I need to test this and I will. But I was wondering what your experiences were by raising your price to a low range to a medium range.

Also note that since I am using adwords they're are going to directly to the salespage.

Thanks!

UPDATE BELOW
#$17 #$27 #conversions #dropped #price #raised
  • Profile picture of the author Thomas Michal
    Many people will often tell you that when they test they usually convert more on the higher price.

    Look at it like this, would you rather buy the secret to success that costs $1.00 or $1,000,000 psychologically you would think the real secret is in the million dollar one because of the perceived value.

    I can't tell you how many times I turn down free things that people hand out

    just my $0.02
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    • Profile picture of the author EdgeStorm
      Originally Posted by yankforlife41 View Post

      Mostly all conversions drop when you raise the price.
      I'm sorry but that statement is not true according to many marketing/advertising tests in both the online and offline world.
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      • Profile picture of the author ShaunAllen
        UPDATE:


        I've raised the price to $27 with no effect on sales. I know that I need a lot more sales to test this completely but right now I'll take my chances. I am not quite earning the extra $100 per day but I am not too far off.

        Thanks all for the help!
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        • Profile picture of the author Gary King
          Originally Posted by DaveJ13 View Post

          UPDATE:


          I've raised the price to $27 with no effect on sales. I know that I need a lot more sales to test this completely but right now I'll take my chances. I am not quite earning the extra $100 per day but I am not too far off.

          Thanks all for the help!
          Congrats. Never be afraid to try, and to adapt quickly. If raising the price plummets conversions to the point of losing profits, back it off in a hurry. If you don't try, you're leaving money on the table.

          I also agree with Dean Jackson - increase the perceived value and you may be able to increase the price even further.

          All success,

          Gary
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          • Profile picture of the author yesacpow
            You need to test for yourself.

            I was selling a product for $29 like everyone else in the same market.. Then I decided to test the price at $39 and low and behold it converted better.. much better.

            I guess at time people think that higher priced products have more quality and value!
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          • Profile picture of the author ShaunAllen
            I am grateful I still have my adwords account and haven't been banned/suspended. Otherwise this test would take a lot longer. I'll let it run the course of a full week and I'll come back here and report my results again.



            Originally Posted by Gary King View Post

            Congrats. Never be afraid to try, and to adapt quickly. If raising the price plummets conversions to the point of losing profits, back it off in a hurry. If you don't try, you're leaving money on the table.

            I also agree with Dean Jackson - increase the perceived value and you may be able to increase the price even further.

            All success,

            Gary
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  • Profile picture of the author Biggy Fat
    That's natural and common sense of life. When something is much more expensive, people tend to veer off the path and try to find a cheaper solution.
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    • Profile picture of the author David Jackson
      Originally Posted by Biggy Fat View Post

      That's natural and common sense of life. When something is much more expensive, people tend to veer off the path and try to find a cheaper solution.
      It's not natural, and it's not common sense. Many times people gravitate toward higher priced items because they automatically equate higher prices with higher quality, which is not always the case. That's why testing is so important...it's the only way to be sure.

      David Jackson
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  • Profile picture of the author David Jackson
    Originally Posted by DaveJ13 View Post

    I've started used adwords again and the good news is that I am making sales. The bad news is that I'd be making about $100 extra per day if I raised my price from $17 to $27.

    I Know that I need to test this and I will. But I was wondering what your experiences were by raising your price to a low range to a medium range.
    You're absolutely right, you should test. That being said, I've raised prices and actually saw my conversion ratio rise in some instances, and drop in others. That's why you need to test...it's the only way to be sure.

    David Jackson
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    • Profile picture of the author tpw
      Originally Posted by David Jackson View Post

      You're absolutely right, you should test. That being said, I've raised prices and actually saw my conversion ratio rise in some instances, and drop in others. That's why you need to test...it's the only way to be sure.

      David Jackson

      Agree...

      One of my products was tested from $9 to $49 and converts best at $49...

      I have tried same at $97 and conversions fell considerably... but I haven't tested between $50 and $97
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  • Profile picture of the author macchiavelli
    I once sold a product for $27 and made nice sales.
    Then I realised that I never tested the price, so I did.
    I raised the price to $37 and saw the conversions sky rocket!

    I went from making $1500 a day with that product to making over $4000 a day.

    True story!

    Since then most of my non IM products I sell for $37, or at least thats where they all start out at.
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    • Profile picture of the author ShaunAllen
      Thanks. Oh yeah, I failed to mention that these are healthy niche products so nothing to do with IM.


      Originally Posted by macchiavelli View Post

      I once sold a product for $27 and made nice sales.
      Then I realised that I never tested the price, so I did.
      I raised the price to $37 and saw the conversions sky rocket!

      I went from making $1500 a day with that product to making over $4000 a day.

      True story!

      Since then most of my non IM products I sell for $37, or at least thats where they all start out at.
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  • Profile picture of the author Slade556
    It depends on a lot of factors like how desperate the niche is, how badly do they need your product. Sometimes you will get MORE sales by raising the price because it gives the appearance that it is more valuable. Obviously this isnt always the case. One thing you can do is create a huge jump in price and test it for awhile to see if you make any sales. If you are making substantial money with a high price, great, if you aren't you will know where your ceiling is and then scale it down accordingly until you find the sweet spot.
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    • Profile picture of the author BethWilliams
      I guess it depends on a lot of things - one of my best selling affiliate products just raised their price by $10 and I haven't made a sale since. :-(
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  • Profile picture of the author Joe Mobley
    Originally Posted by DaveJ13 View Post

    Have Your Conversions Dropped When Your Raised the Price From $17 to $27?
    David,

    May I suggest that you are asking the wrong question. Would you care if conversions dropped if profits increased?

    Sales Price Totals
    100 17.00 1,700.00
    90 22.00 1,980.00
    75 27.00 2,025.00

    Here, a 25% drop in conversions produced an additional $325.00 in sales.

    I'm just thinking.

    Joe Mobley
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    • Profile picture of the author LanceT
      Originally Posted by Joe Mobley View Post

      May I suggest that you are asking the wrong question. Would you care if conversions dropped if profits increased?
      Agreed 100%.

      In my experience raising the price usually means reworking copy, making a slightly different offer and of course, lots of testing.

      You can actually have a decreased conversion rate, but an increased amount of revenue as Joe points out.

      However, you should always be testing your offer and increasing your conversion rates. You would make a lot more if you raised your price and increased rates.

      Lance
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    • Profile picture of the author Barry Unruh
      Originally Posted by yankforlife41 View Post

      Mostly all conversions drop when you raise the price.
      Originally Posted by Biggy Fat View Post

      That's natural and common sense of life. When something is much more expensive, people tend to veer off the path and try to find a cheaper solution.

      Based upon those theories conversions should SKYROCKET for a $1 product. Do you really believe that is true?

      Which size cars sell the most, mid-size or sub-compact? Why?

      Do you order the cheeseburger at McDonald's, the Big Mac, or the Quarter Pounder with Cheese? Why?

      Do you want to buy $1 articles from a sub-standard writer which you will have to re-write or good quality articles from someone at a price of $5 to $10 each? Why?

      Would you believe a report is filled with more valuable information for $7 or for $27? Why?

      If you have a heart problem, do you want to go to the Cardiologist who charges $50 for an office visit, or the one who charges $500? Why?

      I can find post after post on the Warrior Forum of people saying they refuse to buy a WSO priced under $10 because it indicates lack of confidence in the material from the SELLER. They are more likely to buy at $17, $27, $37, or even $97 product. Why?

      Re-check your ideas and start testing. You may suddenly give yourself a very large raise.

      Barry

      P.S. If you want the $50 cardiologist, you may as well buy an airplane ticket, I can probably find you one here in the Philippines for a $5 office visit.
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  • Profile picture of the author freedumb
    I changed one product from $47 to $97 and saw conversion rise.
    I changed another product from $47 to $97 and saw conversions drop (however I still had a better ROI even with less conversions - and that is what truly matters).
    I changed another product from $47 to $97 and saw conversions drop and my ROI was less.

    Don't listen to anyone here including me. Even a well educated guess could be wrong. You've just got to buckle down and test that sucker - no other way...
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    Keep It Simple Stupid!

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  • Profile picture of the author LanceT
    And to answer your original question...

    I usually see conversion rates increase as the price increases.

    If you hit the "resistance" point. Add to the offer.

    It's simple to add in a few extra or better bonuses and even to add a few videos, audios etc
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  • Profile picture of the author Dean Jackson
    Was about to say exactly what Barry just said. The thing I don't like is when people give crappy advice when they don't do things themself.

    If it wasn;t already clear, increasing your price can definately improve conversions. However, you have to increase your percieved value first. Some people call it the "Thud" factor.

    More information, or higher quality information is worth more - or the perception of it.

    - Dean
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  • Profile picture of the author Shaun Lee
    Try $17 and $97 instead.

    -Shaun
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  • Profile picture of the author Michael Atma
    Test and measure is the answer. You can always go back if your profit drops, so what have you go to lose? I'm about to increase the price of one of my products from $17 to $27 with the goal to ultimately sell it for $97.

    It really boils down to perceived value in the Niche your targeting.

    Here's the golden rule that makes me a lot of money.

    $7 to $27 is for an e-book
    $37 to $97 is for e-book(s) with a ton of audio and/or some video thrown in
    $97+ is for a Video Course (with audio and transcripts)
    $497+ is for an e-Course with membership rights to a program (think
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  • Profile picture of the author Gary King
    Awesome, thanks for the offer to share further!

    It's actual reports like this that help people have the motivation to step outside their boundaries too.
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    • Profile picture of the author carp104
      I haven't created any WSOs as of yet buy can someone explain the reasoning behind always selling at a price ending in the number 7? Has this been proven to get more conversions?
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      • Profile picture of the author Gary King
        Originally Posted by carp104 View Post

        I haven't created any WSOs as of yet buy can someone explain the reasoning behind always selling at a price ending in the number 7? Has this been proven to get more conversions?
        It's psychology.

        Psychological pricing - Wikipedia, the free encyclopedia

        Many believe those two numbers help sell.
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  • Profile picture of the author ItsDubC
    Don't forget to consider your refund rate. If you convert better at a higher price point but your refund rate increases, you may need to improve the product or drop the price down a bit.
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  • Profile picture of the author davewebsmith
    ill give it a try on my next product ... seems there is more to this pricing than i ever knew ... thanks for all the info on this thread ...
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    watch this space ...
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  • Profile picture of the author kindsvater
    There are so many possible factors it is impossible to answer yes or no about raising prices. Obviously, test, test, test.

    I have a product I started out charging $35 and customers thought it was a great deal.

    I'm now charging $180. Minimal to no loss in conversions and customers still think it is a great deal.
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