On Pricing Reports: Is There Much Difference Between $7 and $10?

21 replies
Hello,

I want to create some cheap reports and I've wondered about the pricing structure. Obviously I will test the price but before I don I want to know if you have any results you can share with me.

Obviously 7, 17, 37, 97 are very different price points that capture different demographics.

However, would you say more people are willing to buy a short report for just $7 than say $9.95?

I'd be happy if anyone would share any success or case studies they've had.
#$10 #difference #pricing #reports
  • Profile picture of the author Alexa Smith
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    Originally Posted by JamesAggie View Post

    Is There Much Difference Between $7 and $10?
    About $3, the last time I looked - but possibly subject to fluctuations, like all these complicated, currency-related things.

    Originally Posted by JamesAggie View Post

    I'd be happy if anyone would share any success or case studies they've had.
    Second-hand information only, and over a year old, but I had one client who split-tested $7 and $9 price-points for a "report" and sold more (to the same traffic) at $9 than at $7. I suspect that - in general - there's very little difference and that "prices ending in $7" are just one of these time-honoured myths that "everyone believes because it's what everyone does and they must have tested it, right?". But of course I'm a skepchick almost for a living.
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    • Profile picture of the author paj_mccarthy
      I'm split testing at $7, $17 and $19 and my results are showing that for that particular product and that particular traffic source (all from YouTube) the $7 price tag is outperforming the other two price tags in terms of conversion and profit (the test isn't conclusive yet though).

      In fact, let me go dig out the numbers:-



      Not sure about $7 and $10 though...Maybe I'll test it.
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      • Profile picture of the author ZerosToHero
        Thank you for showing some of your stats. I guess this goes to show that you don't always make more money because you raised your price. Sometimes the conversion will be a lot higher like in your example which makes up for a smaller price point.


        Originally Posted by paj_mccarthy View Post

        I'm split testing at $7, $17 and $19 and my results are showing that for that particular product and that particular traffic source (all from YouTube) the $7 price tag is outperforming the other two price tags in terms of conversion and profit (the test isn't conclusive yet though).

        In fact, let me go dig out the numbers:-



        Not sure about $7 and $10 though...Maybe I'll test it.
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        • Profile picture of the author packerfan
          Here's my take on the whole thing. Somehow the internet gurus decided "7" is magical. It's kinda of funny, because the people that make BILLIONS selling products to people, think Wal-Mart, sure have a lot of prices that end in 9. And last time I checked those $.99 apps are selling okay. And the $.99 mp3 downloads, I think they did okay.

          The only way to know is to test. But I'm willing to be people consider $7 and $9 the same thing, and you're losing money by selling it $7.
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          • Profile picture of the author LauraJames
            Originally Posted by packerfan View Post

            Here's my take on the whole thing. Somehow the internet gurus decided "7" is magical. It's kinda of funny, because the people that make BILLIONS selling products to people, think Wal-Mart, sure have a lot of prices that end in 9. And last time I checked those $.99 apps are selling okay. And the $.99 mp3 downloads, I think they did okay.

            The only way to know is to test. But I'm willing to be people consider $7 and $9 the same thing, and you're losing money by selling it $7.
            I agree with this. I would bet also that people consider $7.00 and $9.00 to be in the same "category." This applies whether the currency is Canadian dollars or USA dollars.
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          • Profile picture of the author J Bold
            Originally Posted by packerfan View Post

            Here's my take on the whole thing. Somehow the internet gurus decided "7" is magical. It's kinda of funny, because the people that make BILLIONS selling products to people, think Wal-Mart, sure have a lot of prices that end in 9. And last time I checked those $.99 apps are selling okay. And the $.99 mp3 downloads, I think they did okay.

            The only way to know is to test. But I'm willing to be people consider $7 and $9 the same thing, and you're losing money by selling it $7.
            Actually Walmart's known for not following the whole "9" thing in pricing. Their foods will have odd prices ending in all numbers, their clothing, DVDs and shoes are usually just whole number prices such as a shirt for $5, etc. But yeah, in general, retailers do that a lot. Just not Walmart. They do it, just not as much as others. They are more about giving the impression of saving money so if they sell a can of something for $1.03, it gives the consumer the impression it's a more fair price as it looks more like the actual price rather than inflated.

            Anyway...You are willing to bet but are you willing to test for yourself? Because that's all it really comes down to, in this business. You just got to split-test for yourself as many have shown it's different for everybody and different products, etc.
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          • Profile picture of the author edlewis
            Originally Posted by packerfan View Post

            Here's my take on the whole thing. Somehow the internet gurus decided "7" is magical. It's kinda of funny, because the people that make BILLIONS selling products to people, think Wal-Mart, sure have a lot of prices that end in 9. And last time I checked those $.99 apps are selling okay. And the $.99 mp3 downloads, I think they did okay.

            The only way to know is to test. But I'm willing to be people consider $7 and $9 the same thing, and you're losing money by selling it $7.
            Just to be clear, there is nothing "magical" about it.

            It was tested, however that test was one test...and was a long time ago(in internet marketing years)...so perhaps it needs to be re-evaluated.

            As for Wal-Mart, they actually do NOT do what you say they do.

            Wal-Mart often prices things at strange price points...like $9.44 or $2.17, etc, etc.

            Why?

            They do it in an effort to stress to customers that they are getting a better VALUE.

            $2.99 is the norm, so Wal-Mart prices the same item at say $2.64 so the customer is reminded that this is a discounted price.
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  • Profile picture of the author HostStage
    When i promote my services, the prices applied ends with 7 because i saw that it converts better...

    Anyway, the picture that paj_mccarthy posted explains this clearly ^^

    You`re loosing 2 bucks but on the long term if you get more sales then you ain`t gonna see this as lose.
    On the other hand, i guess it depends from niche to niche as with CTR ... Same ads positions on same designed theme can show up extremely different CTR within different niches.

    About itunes and mp3 download prices, cutting the prices to 0,7 from almost 1$ means a price reduction of 30% so it`s kinda big difference from products sales of 19$ to 17$ where the discount is about 15%
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  • Profile picture of the author Kevin_Hutto
    I have found that $10 does better than $9.95... FYI.
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    • Profile picture of the author edlewis
      Wow...this is gonna make me feel like the "old man" of internet marketing, but oh well....

      I'm 99% sure the prices ending in "7" was something actually tested by Mark Joyner and then published in his "Confidential Internet Intelligence Manuscript". Perhaps it was published in the update to that ebook, "CIIA 2".

      I can't remember...

      I am getting old...

      The tactic was applied by many, many internet marketers...to the point where it is now passed down by marketers who don't know where it came from to other marketers who don't know where it came from.
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    • Profile picture of the author ZerosToHero
      Originally Posted by Kevin_Hutto View Post

      I have found that $10 does better than $9.95... FYI.
      That's interesting. I've been doing $9.95 and just assumed that it would convert better than $10. Now I have another thing that I need to test.
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      • Profile picture of the author ZerosToHero
        UPDATE-


        I've found that $7 is the best price for my cheap reports. Not only do I convert more people, I am able to build a buyers list quicker than before.

        I didn't think there would be much difference but the conversion is better by a few % and I convert more of those buyers to my other products.
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  • Profile picture of the author tishwash
    Originally Posted by JamesAggie View Post

    Hello,

    I want to create some cheap reports and I've wondered about the pricing structure. Obviously I will test the price but before I don I want to know if you have any results you can share with me.

    Obviously 7, 17, 37, 97 are very different price points that capture different demographics.

    However, would you say more people are willing to buy a short report for just $7 than say $9.95?

    I'd be happy if anyone would share any success or case studies they've had.
    I have an interesting case, I don't have stats though sorry...I was selling a product at $23 thinking, well I don't know what I was thinking lol, but I raised the price to $27 and changed nothing else but I started to get sales. And, I did that because I read, several different places, that there is something about the #7 that increases sales. For me it worked.
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  • Profile picture of the author Kevin_Hutto
    What kind of volume are you talking about? In other words, how many of these reports are you selling?
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  • Profile picture of the author Jesus Perez
    This depends on your product and market. No one can give you a definitive answer. I recommend you purchase some split testing software like Easy Multi-Tracking and find out by testing live. You'll learn quite a bit in the process.
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  • Profile picture of the author Bill Guthrie
    This conversation motivates me to begin pricing things at $4, $6, and $8...let's give the even numbers some love too!
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  • Profile picture of the author BIG Mike
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    • Profile picture of the author Jill Carpenter
      On Pricing Reports: Is There Much Difference Between $7 and $10?
      I'm with Alexa. $3.00 - and being in the US currency right now I can say that with confidence.

      Here is an interesting tidbit.

      I was listening to some Napoleon Hill recordings I have. It is not straight TGR but it has some other things added to it.

      Anyway, there is a story that a store keeper was putting stuff on a table for .98 cents. Then he did it for .99 cents. And guess which price caused things to fly off the table? .99 cents was the winner.

      So, you are just going to have to test this yourself.
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      • Profile picture of the author David Keith
        The number 7, 17, 27, 37... were tested and shown to convert better. but that was ages ago... probably 10+ years since i saw that information.

        however there is an interesting sicological thing that happens now that is probably unconsious for many of us.

        we have been conditioned that $7 reports sell better. unconsciously we think everyone should know that, and if someone is selling them for say $6, i am betting there maybe be an unconscious thing that clicks on and says...

        "why is this report $6, everyone knows $7 sells more...i bet this guy is not as big of an expert as he claims to be or he would be selling his report for $7

        just another thought. but it is definitely a testing issue, and it will be different based on all types of things.

        if you get your traffic from a guy with one of those $7 ebook malls, your $9 report probably is not going to do well.
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    • Profile picture of the author ZerosToHero
      Originally Posted by BIG Mike View Post

      Here's another post that might help (I realize you figured it out).

      http://www.warriorforum.com/main-int...ml#post4301452
      One of the best posts I've ever seen on the forum. I know you give a little disclaimer in there, but I am going to change to $7.77 and see what happens. Now I know that you said this is a discounted rate, but I am willing to test it on my info products as the full rate. Should be interesting to see what happens. THanks again.
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      • Profile picture of the author ShayB
        You need to test (as others have said).

        I follow a pricing system that works for me (topping off at $4.97). It may not work for others, and it may not work if I tried it in other niches.
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  • Profile picture of the author Jeff Burritt
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    $7-$9 are basically the same.
    But $10 is now a 'double-digit' price tag in people's minds.
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