Why is the preferred IM price one that ends in 7?

Joseph Robinson

Banned 13 years ago

Somebody once said it would be a good idea. Everyone listened.

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Maui Joe 13 years ago

Originally Posted by Joseph Robinson

Somebody once said it would be a good idea. Everyone listened.

this.

You should be split testing everything, including pricepoint.
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marketinguk

13 years ago

I once heard that some people claim that the number 7 psychologically makes people think they're getting a clearly better deal then if it was ending in 9. This creates a feeling that "i've got to buy at that price" mentality. I don't know if it's true but I could see some logic in it at least.

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vjackson

13 years ago

I was wondering this myself. I have an online store that has just reached 70 sales in 3 months and about half of the items sold ended in "7" - 17, 27, 37, 47. Its very peculiar, but hey, I'm not complaining. My best guess would be that its psychological.

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Dimitris Skiadas

13 years ago

This might give you the answer

Psychological pricing - Wikipedia, the free encyclopedia

Dimitris

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4DayWeekend 13 years ago

Most of the stores around here still charge £XX.99

I wonder if the .97 will catch on there?

Until it does I'm going to continue with $9, $19 etc because I trust the large stores more...
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banx63 13 years ago

Originally Posted by Garage667

This might give you the answer

Psychological pricing - Wikipedia, the free encyclopedia

Dimitris

*changes membership rates!*
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studlee46

13 years ago

Corey Rudl - Wikipedia, the free encyclopedia

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Nick Walsh 13 years ago

Went to a London event about 2001 when Cory was there he talked no stop about IM he was very knowledgeable, i bought a few products off him when he ran marketingtipsdot com
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Michael Oksa

13 years ago

It's part of a vast, guru conspiracy to limit sales made by the masses. See, the "real" gurus want you to believe prices ending in 7 are best.

However...

What the gurus won't tell you is that there are 3 prices (low, medium, and high) that are guaranteed to bring in a flood of sales. I am going to go against my better judgment and share those numbers here. There is a chance that the guru cabal will come after me, but that's a risk I'm willing to take.

Magic low price: $3.56

Magic medium price: $31.84

Magic high price: $452.71

There you have it.

All the best,
Michael

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David Keith

13 years ago

Originally Posted by Michael Oksa

It's part of a vast, guru conspiracy to limit sales made by the masses. See, the "real" gurus want you to believe prices ending in 7 are best.

However...

What the gurus won't tell you is that there are 3 prices (low, medium, and high) that are guaranteed to bring in a flood of sales. I am going to go against my better judgment and share those numbers here. There is a chance that the guru cabal will come after me, but that's a risk I'm willing to take.

Magic low price: $3.56

Magic medium price: $31.84

Magic high price: $452.71

There you have it.

All the best,
Michael

Thanks for this info. I am now off to blindly change my pricing accordingly without testing what works best for me and my niche. I am sure your numbers are correct and that all 7 billion ish people in the world in every conceivable niche will always respond best to these numbers.

Thanks man. You just save me a ton of time and trouble testing and surely cost me many thousands of dollars in profit by announcing that these prices always work best for everyone all the time.

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marketinguk

13 years ago

Originally Posted by Michael Oksa

It's part of a vast, guru conspiracy to limit sales made by the masses. See, the "real" gurus want you to believe prices ending in 7 are best.

However...

What the gurus won't tell you is that there are 3 prices (low, medium, and high) that are guaranteed to bring in a flood of sales. I am going to go against my better judgment and share those numbers here. There is a chance that the guru cabal will come after me, but that's a risk I'm willing to take.

Magic low price: $3.56

Magic medium price: $31.84

Magic high price: $452.71

There you have it.

All the best,
Michael

WOW Michael, i've never seen such clear pricing points from someone as respected as yourself. Can you please let me know why you feel this is the case, is it from your own testing or what you've heard from others?

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Joel

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Michael Oksa

13 years ago

Originally Posted by Joel Ross

WOW Michael, i've never seen such clear pricing points from someone as respected as yourself. Can you please let me know why you feel this is the case, is it from your own testing or what you've heard from others?

Thanks
Joel

Hi Joel,

I would love to answer, but I've already said too much.

All the best,
Michael

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Alexa Smith Banned 13 years ago

It's just like most things in internet marketing: someone once allegedly split-tested it with the menu prices in a pizza restaurant in the 1960's, and unfortunately one of the people present was a "marketer"; ever since then everyone's copied it because "it must work, otherwise people wouldn't be doing it, would they?"

Meanwhile, I've seen some recent actual testing done by my own clients and former clients, in which it was discovered that:-

(i) For a short report, $10 converted better than $7 (I thought $12 might have converted better still, but I couldn't persuade the client to test it, because he already "knew" it would be worse);

(ii) For an e-book $39 converted slightly better than $37;

(iii) For some coaching videos and a membership package $22 converted a lot better than $17.

In each case, when I say "converted better", I'm referring to "more sales", not just to "more net income" (though obviously that was also true).

But the established wisdom is for prices to end in a "7", and of course it must work, otherwise people wouldn't be doing it, would they?
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IMSince2003

13 years ago

Michael, you are in SOOO much trouble for putting those prices in print!

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Daniel Evans

13 years ago

Originally Posted by banx63

Hi,

Just wondering what is behind the pricing of most digital products online these days?

Everything seems to end in 7 - $7, $17, $27, $47 and $97??

Does anybody know?

It just seems odd - my site members pay $15, I thought I would try a break the trend.......

Seven has been classed as a lucky number for centuries, hence it's apperance on fruit machine reels. It's relevance to the bible can be seen here:

THE NUMBER SEVEN IN THE HOLY BIBLE

Neighbouring seven is 6, which is classed as an impure, unlucky number hence why 3 of them are the mark of Satan.

To veer from the mystical (however relevant that might have been or not); your price point at $15 maybe isn't optimal for the fact that your audience are likely to see a price that is 5 dollars more than $10.

A $17 price point suggest than the price is $3 less than $20.

Paying "less", regardless of it being a simple perception, could arguably be a more attractive option.

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MissTerraK

13 years ago

Originally Posted by Daniel Evans

Seven has been classed as a lucky number for centuries, hence it's apperance on fruit machine reels. It's relevance to the bible can be seen here:

THE NUMBER SEVEN IN THE HOLY BIBLE

Neighbouring seven is 6, which is classed as an impure, unlucky number hence why 3 of them are the mark of Satan.

To veer from the mystical (however relevant that might have been or not); your price point at $15 maybe isn't optimal for the fact that your audience are likely to see a price that is 5 dollars more than $10.

A $17 price point suggest than the price is $3 less than $20.

Paying "less", regardless of it being a simple perception, could arguably be a more attractive option.

Seriously?

Huh! I always thought it was because seven ate nine.

Terra

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visimedia

13 years ago

just pricing strategy I think. It looks good , 7 looks good, lucky number seven (even only handful of people believe in this, lol).
It's like the middle of 10 and 5, people won't feel that it's too expensive .... =)

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theory expert

Banned 13 years ago

Since noone mentioned it these threads may help:
http://www.warriorforum.com/main-int...umber-7-a.html
http://www.warriorforum.com/main-int...37-47-etc.html
http://www.warriorforum.com/main-int...nding-7-a.html
http://www.warriorforum.com/main-int...249-price.html

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Dr MaxIM

13 years ago

It used to be 9 at the end, then they decided to have 7 online. But as you can see. it is still 9 offline.

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Joseph Robinson Banned 13 years ago

Originally Posted by maxv

It used to be 9 at the end, then they decided to have 7 online. But as you can see. it is still 9 offline.

And "As Seen On TV" products apparently sell best at $19.95. There just doesn't seem to be a consensus anywhere, huh?
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Ryan David

13 years ago

The first I heard about it was from Corey Rudl. I never put much stock in it as it varies from offering to offering.

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bizzie73

13 years ago

I think it's because it sounds like the price was thought of carefully. If it ends in 9, 5, or 0 it sounds to round. Even numbers aren't sexy. 7 is nice

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Sean Erickson

13 years ago

Lol Robinson.
It's been a big myth.

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Joseph Robinson Banned 13 years ago

Originally Posted by Sean Erickson

Lol Robinson.
It's been a big myth.

I wouldn't exactly call them "myths". Even the wildest stories usually start out with at least some basis in the truth. The problem with the line of thinking in my opinion is that isolated cases are extrapolated and proclaimed the "one best answer".

It's just not the way things work, as some smart guys and gals have pointed out here (in amusing tongue-in-cheek manner).

Business is situational, and I think the smart ones understand this and test/tweak accordingly. Those who don't? Well, we nickname them lemmings for a reason .
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RobertoM 13 years ago

It's just a "I-do-what-people-do" thing.
Like $44,99 instead of $45. Nobody will buy just to save 1 cent. Psychological-marketing trick.
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JohnMcCabe

13 years ago

Originally Posted by banx63

Hi,

Just wondering what is behind the pricing of most digital products online these days?

Everything seems to end in 7 - $7, $17, $27, $47 and $97??

Does anybody know?

It just seems odd - my site members pay $15, I thought I would try a break the trend.......

Here's the history as I heard it...

Many years ago now, a direct-mail marketer and copywriter named Ted Nicholas ran tests and found that for one of his offers, a price ended in '7' did convert better.

Mark Joyner noted that result in his "secret" Internet Marketing Intelligence report. Very respected marketers such as the late Rudl used it and had success. I don't know if they ever bothered testing again, or if they just let it ride.

Since then, it's been one of those accepted "rules" that almost no one challenges - at least in public. Various experts have ruminated on why it works (good luck, seems like a better deal, etc.), but it's rarely challenged.

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GlobalTrader

13 years ago

Originally Posted by JohnMcCabe

Here's the history as I heard it...

Many years ago now, a direct-mail marketer and copywriter named Ted Nicholas ran tests and found that for one of his offers, a price ended in '7' did convert better.

Mark Joyner noted that result in his "secret" Internet Marketing Intelligence report. Very respected marketers such as the late Rudl used it and had success. I don't know if they ever bothered testing again, or if they just let it ride.

Since then, it's been one of those accepted "rules" that almost no one challenges - at least in public. Various experts have ruminated on why it works (good luck, seems like a better deal, etc.), but it's rarely challenged.

John, you are correct! I had a marketing book written by Ted Nicholas way back in the late 70's or early 80's (can't remember) in which he revealed one of his secrets to success being the use of number 7 in his pricing.

It would be interesting if any of the modern day, big name Internet marketers would choose to challenge this 'old' axiom to test if it is still as effective online as it was for other direct marketing channels?

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smallbusinesstoolkit 13 years ago

My theory : Even prices like $10, $20, $500 give the impression in the customer`s mind "They make such a chunk of money on me"
Prices like $17, $29 , $299 give impression like the prices were more carefully calculated , considering cost , value , size of package etc .

But I think the real winners will be prices like $18.56 , $78.40 as they look like even more carefully calculated and people get used to 7s and 9s at the end and start seeing them as marketing trick.
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Bruce Wedding

13 years ago

Originally Posted by JohnMcCabe

Here's the history as I heard it...

Many years ago now, a direct-mail marketer and copywriter named Ted Nicholas ran tests and found that for one of his offers, a price ended in '7' did convert better.

Thank you, John. I was going to post if I didn't see someone name the right guy. It was NOT Corey Rudl.

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matchoo77

13 years ago

I don't use the 7's and I do just fine. Top 100 CB vendor for 3 years straight now.

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hockmasm

13 years ago

i'm going to change the pricing of my products to end in 7. Right now they are 9.95 and 12.95. Maybe 9.97 and 12.97 may work better?

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Alexa Smith Banned 13 years ago

Originally Posted by hockmasm

i'm going to change the pricing of my products to end in 7.

You're serious? I'm glad for my clients that they tested for themselves and found that $10 sold better than $7, that $22 sold better than $17, and so on ...
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webdesignnomad

13 years ago

Agreed! What is up with the 7? I have found the most common price always seems to be $37...
I would also like to break the trend!
That's why my eBooks and products are free

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Daniel Evans

13 years ago

Originally Posted by webdesignnomad

Agreed! What is up with the 7? I have found the most common price always seems to be $37...
I would also like to break the trend!
That's why my eBooks and products are free

Free is more common than $37...

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hebsgaard

13 years ago

Some very interesting points right here. However, you all seem to be forgetting one very important thing. This is the Internet. The Internet is run on severs and such gizmos. All those gizmos respond only to 10 numbers. Thus those 10 numbers are the only ones that should be used.

The reasoning is simple. The servers, gizmos and gadgets running the Internet have a far greater understanding of these numbers and thus will inherently drive most visitors to those sites. It's a compatibility thing.

There are only 10 types of people in the world. Those who understand binary and those who don't!

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Michael D Forbes

13 years ago

It's really quite simple. The 7 is so you know you are on the internet instead of in a retail store. It's just a clever device to avoid that kind of confusion.

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WarGasm

13 years ago

According to most women 6 is average but 7 is optimal.

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Randall Magwood

13 years ago

It's an attractive number. And makes $37 sound significantly smaller than $39.

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Thomas Michal

13 years ago

The first place I seen it referenced was in in this book

Amazon.com: Magic Words That Bring You Riches... and here is the excerpt

"Pricing your product

Here is a really powerful tip that will increase your profits. You may have noticed that the price of my books and tapes ends in seven. There is a good reason for this. Remarkably, with the same copy and offer for a given product, you can increase sales simply by changing the price to one ending in seven.

Recently, at a seminar at which I spoke, my co-speaker, Gil Good, who was in charge of promotions at the Wall Street Journal for many years, discussed that subscription offers ending in seven out-pulled all others. At my last seminar, an attendee, a biblical scholar, pointed out the number seven was often used in the Bible.

Remember the phrase, "70 X 7"? Seven may be a number that is truly blessed! The most effective magazine subscription offer, made many years ago, was by Life Magazine for $7.77.

Test price this way. If your current price is $19.95, try $19.97. If you now sell at $69, test $67 or $77; or if your price is $99, try $97, etc.!"

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Bruce Wayne

13 years ago

It is a mysterious and unknown reason that even marketers themselves do not know why they are doing this

. Well, it works for them and brings more and more sales each time they put 7 at the end of their price... Marketer thinks... Well, I like it, so the potential buyer will like it even more... And heck... Not knowing why, he is damn right!

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Ruzza

13 years ago

Interesting, I have always wondered what was up with the 7's but yea it has always worked for me.

Damn pretty 7's

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kencalhn

13 years ago

I even had a live Las Vegas seminar and cleverly priced it at $777/person (and used a slot-machine graphic for it).

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Anonymous Affiliate

13 years ago

I doubt 7 is a magical number that automatically brings up conversions.

Instead, I quite simply believe that we use 7 because, for whatever reason, it became the norm in the IM industry (kind of like .95 endings for retail discount offers), thus the market (both buyers and sellers) naturally gravitate towards what they're familiar with.

It's all about avoiding "price shock" on our prospects. It feels more "natural" to price a product at $27 or $29.95 than it does at, for example, $26.72. An awkward number might trigger suspicion (even if unjustified), thus when it comes to pricing it's best to stick to "the norm".

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Daniel Evans

13 years ago

Originally Posted by Anonymous Affiliate

I doubt 7 is a magical number that automatically brings up conversions.

Instead, I quite simply believe that we use 7 because, for whatever reason, it became the norm in the IM industry (kind of like .95 endings for retail discount offers), thus the market (both buyers and sellers) naturally gravitate towards what they're familiar with.

It's all about avoiding "price shock" on our prospects. It feels more "natural" to price a product at $27 or $29.95 than it does at, for example, $26.72. An awkward number might trigger suspicion (even if unjustified), thus when it comes to pricing it's best to stick to "the norm".

The question is; why did it become the norm?

Factors are usually established for a reason.

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jaghananet

13 years ago

Do ab testing. Compare $x7 versus $x9 and see how much profit you make.

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Why is the preferred IM price one that ends in 7?

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