What are lower prices that "work" besides 47 USD?

26 replies
Has anyone some experience what prices work well in the lower segment.

For example:

19.95 vs 29.95 or even 19.95 vs 47 USD

It would be fantastic if anyone has a link to some case studies or can share his or her own test results.
#lower #prices #usd #work
  • Profile picture of the author zamzung
    There certainly are some case studies about that question but I personally never looked them... I try to decide on my own what would be the best price for my product... next, I will do some testings with various prices and see which one works the best...
    {{ DiscussionBoard.errors[5278320].message }}
  • Profile picture of the author DavidTT
    well when I read the book influence by robert ciadlini, anything that has a 7 in it is more likely to be purchased.
    {{ DiscussionBoard.errors[5278360].message }}
    • Profile picture of the author EricBaglio
      Originally Posted by DavidTT View Post

      well when I read the book influence by robert ciadlini, anything that has a 7 in it is more likely to be purchased.
      Awesome book. I have all sorts of notes from reading it.

      As for pricing, I love ending I 7 too as a result of my own testing. However every market and every product is different. You really just need to do some split testing...
      Signature

      "TAKE ACTION" is the first thing everyone tells you and then they leave it at that. I'll add a second part: TRACK EVERYTHING" - It's the only way to ensure your ACTION leads to results.

      {{ DiscussionBoard.errors[5278955].message }}
  • Profile picture of the author scubasteve-cr
    I think that people just blindly follow the "gurus" pricing models of ending everything in a 7. Why don't you just split-test your prices? For one of my membership sites, my most profitable price was a flat $50.00/month.
    {{ DiscussionBoard.errors[5278371].message }}
  • Profile picture of the author RHert
    It's a mental aspect thing. It's been proven many times that odd numbers are more likely to be bought than even. Such as 11.95 vs 12.00. It's a measly 5 cent difference but there's a huge difference in people's minds. They see the 11 and the 12. This is why gas stations us that pesky 9/10 of a cent at the end of all their prices. They can't actually take 9/10 of a cent, but they can a penny and nobody even sees it.

    Granted all products and sites are different and should be tested. Use a few different prices and see which one works best for you.
    Signature
    Copywriting at it's Best! - Tips and tricks to connect with your reader.
    {{ DiscussionBoard.errors[5278411].message }}
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by thishere View Post

    Has anyone some experience what prices work well in the lower segment.
    I have ... but it's one of these subjects where someone else's experience may not be helpful to you at all: you really have to test for yourself, whatever it is you want to know.

    One of my clients did an extensive split-test on pricing a little e-book, at $7 and $10 price-points. It sold more copies (not just "made more money" though that was obviously also true) at $10 than at $7. I wanted the client to test $12, too, but he didn't want to.

    Another split-tested a longer e-book (intended for ClickBank) at $37 and $39 (not the prices I suggested) and it sold more copies at $39.

    There was a third one as well, which also sold more copies at the (considerably) higher price-point, but that was outside the range you're asking about.

    Call me a skepchick, but my own impression is that "the value of prices ending in -7" is a complete myth, which thousands of marketers lovingly incorporate into their own businesses, without split-testing, on the usual internet marketing "logic" that (a) "it 'must work' otherwise everyone wouldn't do it" (:p) and (b) "it 'must have been' split-tested and proven in the past" (:p - it probably was, 20 years ago in the direct mail age in a different industry, in another country, in a different market, in a different niche, with a different product).

    The only evidence that's really relevant to you is what you split-test yourself.

    To express it in slightly different words, it's not about "prices that work": it's about "entire sales-set-up-and-traffic combinations that work".

    Just my skepchick perspective.
    {{ DiscussionBoard.errors[5278453].message }}
  • Profile picture of the author travlinguy
    I've been a fan of the $7 price. Most of my products end with a 7. I bought into the 'fact' that testing proved sevens more effective.

    I have no idea where this stuff came from. But I happen to like sevens. It probably has something to do with some people feeling they are lucky. Not very scientific but then, neither am I. :p
    {{ DiscussionBoard.errors[5278512].message }}
  • Profile picture of the author blillard
    This is an interesting post as I was wondering what price my ebook at. I've read many wso on the topic of product creation and they all mention to start at $7-$10 range when starting out. Me I feel my content is worth a lot more than that. I also notice that it can be a trend or something sense we all visit the WSO sections and see it being done all the time by everyone else it's just second nature to do so because feel everyone is having success at that price range.
    {{ DiscussionBoard.errors[5278636].message }}
  • Profile picture of the author bertosio
    Im a sucker for ending prices in a 7!

    As has been mentioned before there have been countless tests on this and the results always come out very similar.
    Signature

    Gouranga

    {{ DiscussionBoard.errors[5279108].message }}
    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by bertosio View Post

      As has been mentioned before there have been countless tests on this and the results always come out very similar.
      Yes indeed - in my very limited experience, 100% of the time.

      I've only seen three tests of it myself, and - as mentioned above with some details - in all three the price ending in a 7 actually came out worse.

      But as long as there are people to repeat this nonsense along the lines of unevidenced sweeping generalisations like "there have been countless tests on this", people will continue to believe the story. And hey ... you can strengthen your own belief in it, as well, just by repeating it to others who also want to hear it because it confirms their own irrational prejudices.

      The beliefs of the "Urban Myth School" of network marketing are, as ever, very pervasive indeed.
      {{ DiscussionBoard.errors[5279352].message }}
      • Profile picture of the author blillard
        Originally Posted by Alexa Smith View Post

        Yes indeed - in my very limited experience, 100% of the time.

        I've only seen three tests of it myself, and - as mentioned above with some details - in all three the price ending in a 7 actually came out worse.

        But as long as there are people to repeat this nonsense along the lines of unevidenced sweeping generalisations like "there have been countless tests on this", people will continue to believe the story. And hey ... you can strengthen your own belief in it, as well, just by repeating it to others who also want to hear it because it confirms their own irrational prejudices.

        The beliefs of the "Urban Myth School" of network marketing are, as ever, very pervasive indeed.
        Damn your good with words Alexa.
        {{ DiscussionBoard.errors[5279387].message }}
  • Profile picture of the author rusty1027
    Although not specifically about prices under $47, Ryan Deiss put up this really interesting video about pricing and split testing pricing - it's a good watch...

    Free Presentation: This Pricing "Enigma" Could Instantly Double Your Sales | Digital Marketer
    {{ DiscussionBoard.errors[5279463].message }}
  • Profile picture of the author Dann Vicker
    For us in the IM niche, prices ending in 7 tend to be a more familiar price point. But ultimately, you cannot know for sure if you don't split-test.
    Signature

    Looking for high quality solo ad traffic? 200-2000 clicks available/day. Testimonials here. PM me

    {{ DiscussionBoard.errors[5280199].message }}
  • Profile picture of the author Robert Michael
    Simply placing a 7 at the end of your price isn't going to make your product any better, just like NOT having a 7 isn't going to make it any worse.

    Set your product/service to sell for what YOU feel is a reasonable price for the amount of work, time and resources you would need to fill 1 order.

    OR if its an e-book or something that you can deliver instantly after payment, you should charge whatever you think is reasonable for the amount of time & effort you put into creating it, BUT you also have to consider the quality of what you are selling.

    Either way, just make sure its profitable enough to continue selling.

    If you spend 10 dollars on resources plus 1 hour of your time on each order, selling it for 20 dollars (depending on where you live) would probably be a bad idea.

    Sure, you "make" 10 dollars on each sale - BUT after what you've invested into that sale, you'd be lucky to break even..

    There are a ton of factors that should go into your pricing. Only you can figure out what would be worth your troubles.

    This is just my opinion though, so yea.. Price it however you like.. lol but you should definitely test different prices and see what works the best for you.

    I just know that 1 hour of my time is worth much more than 10 bux. But again, this is just an example and only my opinion.

    I just see people selling themselves short way too often.. sometimes it might be necessary for a little while until you can build up a reputation for yourself, but eventually you have to know how to charge what you are worth.
    {{ DiscussionBoard.errors[5280230].message }}
    • Profile picture of the author SuppaDave21
      Originally Posted by Whos That Guru View Post

      Simply placing a 7 at the end of your price isn't going to make your product any better, just like NOT having a 7 isn't going to make it any worse.

      Set your product/service to sell for what YOU feel is a reasonable price for the amount of work, time and resources you would need to fill 1 order.

      OR if its an e-book or something that you can deliver instantly after payment, you should charge whatever you think is reasonable for the amount of time & effort you put into creating it, BUT you also have to consider the quality of what you are selling.

      Either way, just make sure its profitable enough to continue selling.

      If you spend 10 dollars on resources plus 1 hour of your time on each order, selling it for 20 dollars (depending on where you live) would probably be a bad idea.

      Sure, you "make" 10 dollars on each sale - BUT after what you've invested into that sale, you'd be lucky to break even..

      There are a ton of factors that should go into your pricing. Only you can figure out what would be worth your troubles.

      This is just my opinion though, so yea.. Price it however you like.. lol but you should definitely test different prices and see what works the best for you.

      I just know that 1 hour of my time is worth much more than 10 bux. But again, this is just an example and only my opinion.

      I just see people selling themselves short way too often.. sometimes it might be necessary for a little while until you can build up a reputation for yourself, but eventually you have to know how to charge what you are worth.
      Great Post, and I can agree 100% stop trying to trick people and give them something good for a price that you are happy with taking. I can see huge corporations that sell millions of items yearly doing this, as a .3 increase in sales could mean could mean a lot more extra $$$ to them than a .3 increase would do for people selling a $20 product to just hundreds of people
      Signature
      ASK ME ABOUT MY $5 CUSTOM WEB-DESIGN DEAL!!!
      EXCELWEBDESIGN.COM

      {{ DiscussionBoard.errors[5282847].message }}
  • Profile picture of the author ATH
    Definitely odd vs. even, but other than that, there's no "magical" numbers and that's a horrible way of thinking. Value = the great decider
    Signature

    Fully self-employed. Nothing to advertise. Happy with life. There were cup noodles and hard nights along the way.

    Yes, it's possible.

    {{ DiscussionBoard.errors[5280274].message }}
  • Profile picture of the author thishere
    Thanks for the great feedback. I will split test but just look for a starting point
    {{ DiscussionBoard.errors[5281626].message }}
  • Profile picture of the author williamo
    Good question

    I have a PDF product which is downloadable at $9 or as a CD for $17 (the CD has a few extra PDFs which are available already on the website which can be downloaded for free.)

    The strategy behind this was to provide a valuable low cost product that would enable people to say "wow all this for $9" and to continue to build a loyal customer following particularly for my email newsletter list. I thought that he $9 would be snapped up.

    Since it came out in mid December the downloads have been 6 and CD sales around 80 or greater than 10 to 1. It appear to me that my market perceived a greater value for the physical product than the cheaper downloadable alternative. I even had to do a rush order on Kunaki to get another 100 CDs for the Christmas Market.


    At the same time I was selling downloadable software for $37 and tried this in CD format with a charge of $45 removing the download option which I was going to do due to some people having download issues- MANY of the customers who bought the $17 CD also bought the $45 CD. Curiously enough other people who bought the $37 downloaded software previously also wanted an option to buy the CD.

    So, it will depend on the preceived value of your product to the customer, how unique your product is, how it fits the needs of your market niche and whether people have a overwhelming desire to buy your product or it's just "ho Hum".

    I agree with others that testing the various configurations, sales pages and prices are the way to go It will also depend on the strategy you have for that particular product whether it is a low cost entry to get people into your website funnel or whether it is a more high value item that you have invested a lot of time and cash into.

    I dont think its a simple answer or 7's or $9.95 or even numbers or whatever, its more a matter of strategy and analysis

    regards
    Bill
    {{ DiscussionBoard.errors[5282989].message }}
  • Profile picture of the author GaryBurke
    Content and value are the sellers not the cost .
    If I saw a product for $17 and it was just an ebook but someone else is selling the same product with the same ebook with 7 videos and 5 cd's for $97 which one am I going to buy
    {{ DiscussionBoard.errors[5283039].message }}
  • Profile picture of the author ephame
    Honestly i completely ignore the whole 7, 17, 27, 37 ,47 etc crap and just price depending on my competition, and the product involved. The only reason i would consider using a 7 in the price is to perhaps slightly undercut a competitor and nothing else.

    Also i just use .95c on nearly everything i have no idea why but that's just how i like to price and seeing i have the control that's what i'll do. Split test if you like but ultimately think about what you would do/buy each market/niche is going to react differently so if nothing else just remain consistent.
    {{ DiscussionBoard.errors[5283147].message }}
  • Profile picture of the author Daniel Wilson
    I got best results when using $random.57

    57 is an interesting number Try incorporating something users are familiar with. And 57 is such a number (that ketchup company)
    Signature


    -25% WF PROMO CODE: "WFPROMO911" (expires on 1.1.2012)
    - High search volume keywords , high CPC keywords, easy to rank keywords
    {{ DiscussionBoard.errors[5283435].message }}
  • Basic Marketing principle: the last thing you want to do is to make a customer feel any confused or apprehensive for any reason while he's standing in the checkout line, credit card in hand. At that precise moment, a smooth and "shock-free" checkout experience is crucial to minimize abandon rates.

    Fact: For whatever reason, IM prices ending in 7 have become the norm, whatever the reason might have been (I don't care).

    Consequence: changing the norm for not particular reason (changing $47 to $46.50 for example) is a bad idea, as it goes against what's been molded as "normal" within your prospects brains, and that might get them confused/apprehensive. That's bad business practice.

    Conclusion: as far as prices go, once the customer is waiting in the check out line credit card in hand, go with whatever has been "wired" into his brain from common practice, and if that's 7 (or 9.95 or whatever), then go for that (regardless of whether the "norm" makes sense or not).
    {{ DiscussionBoard.errors[5284267].message }}
  • Profile picture of the author Rodger Hyatt
    I prefer to attract a more intelligent audience. These people are easily insulted though..
    When they see a $9.97 they don't buy it... when they see $10.00 they buy it...

    $9.97 is meant to say a couple of things:
    (1) - It's just a bit more than a 5 dollar bill!
    (2) - I'm placing this specific price like this in an attempt to, through some swift Jedi mind tricks convince you that it is NOT ten dollars (yet).

    $10.00 is meant to say this:
    (1) - This product will cost you ten dollars, nothing less, nothing more.
    (2) - I understand Jedi mind tricks don't work on you, therefore I will respectfully reveal the correct amount right here and now.

    Just my 2.77 cents

    ...Rodger
    {{ DiscussionBoard.errors[5284317].message }}
  • Profile picture of the author tpw
    All offers are different, and all offers will work with the right price.

    You cannot get that kind of business intelligence from a book or a report.

    You have to test!!
    Signature
    Bill Platt, Oklahoma USA, PlattPublishing.com
    Publish Coloring Books for Profit (WSOTD 7-30-2015)
    {{ DiscussionBoard.errors[5284875].message }}

Trending Topics