# Optimum Price Breaks - Magic Numbers?

10 replies
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Back when I had my first brush with IM (2001), I was told that there were certain optimum price levels, "magic numbers", that could increase sales for a product.

ie: An item priced at \$37.95 will sell more than the same item at \$39.95, or even at \$35.95 (not sure of the exact numbers here - just an example). The idea was, at certain price breaks, people see value and cheap price at the same time. A lesser-priced item is perceived to be of lower value, while adding a small amount to the price (sometimes only a few cents) will cause people to perceive the item to be of higher value, yet still at a cheap price.

Has anyone heard of this? Anyone know any of the optimum price beaks for best sales?

joe
•  Originally Posted by cjreynolds Back when I had my first brush with IM (2001), I was told that there were certain optimum price levels, "magic numbers", that could increase sales for a product. ie: An item priced at \$37.95 will sell more than the same item at \$39.95, or even at \$35.95 (not sure of the exact numbers here - just an example). The idea was, at certain price breaks, people see value and cheap price at the same time. A lesser-priced item is perceived to be of lower value, while adding a small amount to the price (sometimes only a few cents) will cause people to perceive the item to be of higher value, yet still at a cheap price. Has anyone heard of this? Anyone know any of the optimum price beaks for best sales? joe
Ending a number in 7 is an attractive selling number

\$7
\$17
\$27
\$37
\$47
\$67
\$77
\$97
\$197
\$297
\$497
\$997
\$1997
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• Sellers, marketers, and businessman like to use the amount \$xxxx.95 to let their would-be clients perceived how cheap their product is but most Internet marketers will use the "magic number" 7 to touch the heart of their would-be clients. They use the following amount: \$7.00, \$17.00, \$27.00, \$37.00, \$47.00, \$97.00, etc. depending upon the value of their digital products.
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• I hate to sound like a broken record but...

The only way you will know for sure which price works best for you is by testing them with your own product in your own niche. We can all speculate as much as we want - but we are not your typical customer. Let the customers tell you the price they prefer.
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• 7, 17, 27, 37 etc are just some of the conventional pricing used by many in IM.

Personally, I find 7.77, 17.77, 27.77 to be more attractive :p
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• Great info!

Thanks, folks!

joe
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• \$12.63

I think my next WSO will be \$12.63...

This is an argument (IMHO) of Quality Vs Quantity:

It all depends on what you do with those buyers next month....

Personally, I'll take the 100 @ \$2. PM me if you don't know why...
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•  Originally Posted by MichaelParsons Personally, I'll take the 100 @ \$2. PM me if you don't know why...
I would rather have fewer high paying customers than a whole load of customers who have only spent \$2. They are two totally different types of customers.
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•  Originally Posted by WillR I would rather have fewer high paying customers than a whole load of customers who have only spent \$2. They are two totally different types of customers.
Indeed, Will, I see your point, but what happens when you pitch a new product for \$50 to your 4 or 8 previous buyers?

What will happen when my 100 buyers get a \$5 or \$10 product pitch?

Just a difference in opinion strictly limited to the OP about price point, because I do share your opinion about 'higher quality' subscribers.
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• Of course testing is always needed...

But really, the optimum price is the most money you can justify based on the offer you give.
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•  Originally Posted by James Foster Of course testing is always needed... But really, the optimum price is the most money you can justify based on the offer you give.
I like your take - Thanks everyone! You guys rock!

joe
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