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Why $7?

by BaukeV
40 replies
So, every single IM product out there is $7, $17, $97, $997, etc., why is that?

It's something only really being used in online products from what I've seen. Retail shops are still using the "old" 9.95 or something similar, so I'm not sure why the IM world seems to think that doesn't work?
  • Profile picture of the author MarketingBees
    Test it for your own products!

    But some say it's a myth. Some say it was tested by a guru. Some have just come to accept it as common practice.

    It's all to do with psychological pricing and $97 sounds cheaper than $99 which sounds cheaper than $100. Obviously they are cheaper but it sounds much cheaper.

    The difference between $97 and $99 however is up for debate and is something you personally would have to test.
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  • Profile picture of the author RobinInTexas
    I think it started out as a fad, now it's just monkey see monkey do.
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    ...Even if you're on the right track, you'll get run over if you just set there.
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    • Profile picture of the author SEOArbiterJoanne
      Originally Posted by RobinInTexas View Post

      I think it started out as a fad, now it's just monkey see monkey do.
      I do think this is the case.

      I do remember this topic coming up on here at another time and someone posted some psychology study that may have been to do with how it started.
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  • Profile picture of the author jamescanz
    I have tested it, and ironically enough...

    When I put $7 up against $17, $19, $20, $27 (and a couple others)...

    I made a helluva lon more from a funnel even though I lost money on the FE sale

    So, why not $7?
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    • Profile picture of the author BaukeV
      Originally Posted by jamescanz View Post

      I have tested it, and ironically enough...

      When I put $7 up against $17, $19, $20, $27 (and a couple others)...

      I made a helluva lon more from a funnel even though I lost money on the FE sale

      So, why not $7?
      Obviously $7 on the FE sells better than $17 or more, but how about $8 or $9? It's still less than $10 which is an obvious psychological barrier, but is $8 as well?
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      • Profile picture of the author Devid Farah
        Originally Posted by orion87 View Post

        Obviously $7 on the FE sells better than $17 or more, but how about $8 or $9? It's still less than $10 which is an obvious psychological barrier, but is $8 as well?
        The only way for you to know is by TESTING. Test different price points for your FE product. I never tested $8 for a product launch, but i did with $7 and $9.

        $9,97 converted a lot better than $9. It sounds incredibly cheaper than $10 in the subconscious mind of your customer, but like alexa mentioned above, $10 convert very well on some type of offers(like short reports) and i can tell you that. But, from my experience, nothing beats $7 for the front end.

        Also, dimesales work great for me and convert very well. But it depends on your offer and what u are selling.

        From my stats, $7 seems to be the "perfect" price point and most customers seem to not hesitate to click the buy button. I never had complaints and refund rates were close to 0.

        Go under $7 and some people will start thinking is "crap" in their mind. Psychology baby.... Like i said, u need to test and again it depends on what u are offering, the market, where you are sellin it, the platform etc... maybe $5 or $3 will convert extremely well for you here, cant tell... it depends on many factors, like offer, sales funnel.. etc...

        Look for a thread from CDarklock where he perfectly explains why certain price points work wonders... can't remember the name.
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        • Profile picture of the author discrat
          I think when starting out in Internet Marketing (and Affiliate Marketing) 7$, or below $10, is a good place to start to get on the board and make a little money.

          It becomes kind of an impulse item that people purchase without thinking because it is so cheap and they feel there is nothing really to lose.

          I know people say to promote big ticket items and you should strive to do that. That is fine, but you can also make a helluva a lot of money with a good $7 product.

          No question


          Robert
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    • Profile picture of the author Steven Wagenheim
      You need to know your target market. If it's the IM crowd, use $7 at the end of your price. Why? Because they're friggin brainwashed. It's just the way they're wired because of being bombarded by this self fulfilling prophecy.

      If it's outside IM, like diet or exercise or real estate or whatever, test. Look at what other like products are selling for.
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  • Profile picture of the author Efficacious
    I think a good psychology expert could say something about this... It's not only marketing anymore, you need to get to people brains in order to explain this.
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  • Profile picture of the author ronrule
    If you want the psychobabble, you'll enjoy this article:

    Why Things Cost $19.95 - Scientific American
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    http://ronrule.com

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    • Profile picture of the author Alexa Smith
      Banned
      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 those 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, over the last few years, I've seen some testing done by my own former writing clients, among others, and 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 marketer concerned to test it);

      (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.

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

      .
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  • Profile picture of the author mydream247
    $7.00 is the number many marketers feel customers will pay without hesitation, and also less refunds, because after all it's only 7 bucks.....
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by mydream247 View Post

      $7.00 is the number many marketers feel customers will pay without hesitation, and also less refunds, because after all it's only 7 bucks.....
      And you think that's more true than is true of $6 or $8? Have you ever tested either?
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  • Profile picture of the author PLR Basket
    I think it also has to do with 7 being a lucky number for alot of people.
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  • Profile picture of the author seobro
    Take this from a person with retail experience. $19.95 is the best option for you. Also good is $9.99, but stay away from $7 as $6.99 will sell a lot more. I have found that $7 is associated in people's minds with a scam. Most of the products that end in a seven... they are less than stellar shall we say.
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    • Profile picture of the author Robin Grant
      From my experience with online sales, ending a product's price in 7 eg $27, $37, $47 makes no difference than ending in 9 eg $29, $39, $49 so you may as well end it in 9 and make the extra $2.
      The important points are:
      1. $49 sound cheaper than $50 and does sell more.
      2. If the product is good don't set the price too low as it gives the impression the product is cheap rubbish and prospect buyers will be skeptical. I have increased the price on some products and sold more volume.
      3. When a product is cheap the price won't matter much eg $7, $9, $19 will sell the same volume.
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  • Profile picture of the author trump7
    I think companies play with the psychology of the customers and a figure which should be acceptable for them to purchase somthing.
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    • Profile picture of the author Riyaz Ansaari
      I do remember coming across research supporting a $7 price point.

      However I think prior to being in IM I would found $7 slightly odd myself,

      I'm not sure why, maybe its on a subconscious level.

      It's interesting how people react to different price points.

      I remember from my days in marketing that colours can also subconsciously

      affect customers.
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  • Profile picture of the author trevord92
    From memory, it was Ted Nicholas who tested the prices ending in 7.

    But I think it's shifting:
    • Most UK clothes retailers price in round pounds after one of the biggest (Marks and Spencer) found out how much adding the extra penny added to their bottom line profit
    • At least one large UK supermarket (Tesco) prices at least some of its non-grocery items with a 7 at the end and they're notorious for testing
    • With the pound/dollar shops taking market share, round pricing rather than 99's is almost seen as "value"
    But you need to test your list, your product, your price.
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  • Profile picture of the author talfighel
    This number sells.

    A lot of gurus and internet marketing experts are using this number to sell. It works and they keep using it.
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  • Profile picture of the author mohsinmallik
    Some words and numbers have great effects over people. We know there is a hype called "Lucky 7" and a lot of people believe in that. If you product is $13, it is not likely to do very well.
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  • Profile picture of the author johnben1444
    Some folks believe the number 7 holds luck.

    007
    Seven Lucky Stars
    Lucky Number Slevin

    http://www.dailymail.co.uk/news/arti...ic-number.html

    It's just a myth to me..
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  • Profile picture of the author Top100
    777
    Gamblers see lucky

    Isnt 8 a lucky asian number?

    Anyone use 8 yet
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  • Profile picture of the author moneyhd
    Great Question.. Sometimes i think that too.. Well i dont know about that 7$ term but yes Only 10 more at 7$ is really helpfull in sales
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  • Profile picture of the author IDontPayForClicks
    The number 7 has a good publicist. It wins in craps. It has a good reputation in the Bible. It rhymes with heaven. Notice, no products are ever $66!

    Just my estimation.
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  • Profile picture of the author ChrisBa
    Originally Posted by orion87 View Post

    So, every single IM product out there is $7, $17, $97, $997, etc., why is that?

    It's something only really being used in online products from what I've seen. Retail shops are still using the "old" 9.95 or something similar, so I'm not sure why the IM world seems to think that doesn't work?
    Here's a decent article on the theory - The Number 7 : Ted Nicholas & Product Pricing Strategy
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  • Profile picture of the author yakim1
    I think back in 2006 there was a simple script that would pay the affiliate instantly when the sale was made. It was called the seven dollar script. That script sold like crazy and built a tremendous list for its creator.

    I think it was about that time the number "7" became magical.

    Best regards,
    Steve Yakim
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  • Profile picture of the author buysellbrowse
    Numerology: "The number 7 is the seeker, the thinker, the searcher of Truth. The 7 doesn't take anything at face value -- it is always trying to understand the underlying, hidden truths. The 7 knows that nothing is exactly as it seems and that reality is often hidden behind illusions."

    From the Seven days of Creation to the Seven Seals of Revelation, Scripture is saturated with the number Seven. "And Abimelech said unto Abraham, What mean these seven ewe lambs which thou hast set by themselves? And he said, For these seven ewe lambs shalt thou take of my hand, that they may be a witness unto me, that I have digged this well." (Genesis 21.29)

    In China, the number 7 is considered lucky because it sounds similar to the Chinese words for 'arise' and 'life'.

    In Buddhism, seven is the number of ascent, and Buddha is said to have walked this number of steps at his birth.

    There are seven ancient wonders of the world, seven days of the week, seven circles of the universe, seven deadly sins, and seven basic musical notes.

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    • Profile picture of the author BaukeV
      Originally Posted by buysellbrowse View Post

      Numerology: "The number 7 is the seeker, the thinker, the searcher of Truth. The 7 doesn't take anything at face value -- it is always trying to understand the underlying, hidden truths. The 7 knows that nothing is exactly as it seems and that reality is often hidden behind illusions."

      From the Seven days of Creation to the Seven Seals of Revelation, Scripture is saturated with the number Seven. "And Abimelech said unto Abraham, What mean these seven ewe lambs which thou hast set by themselves? And he said, For these seven ewe lambs shalt thou take of my hand, that they may be a witness unto me, that I have digged this well." (Genesis 21.29)

      In China, the number 7 is considered lucky because it sounds similar to the Chinese words for 'arise' and 'life'.

      In Buddhism, seven is the number of ascent, and Buddha is said to have walked this number of steps at his birth.

      There are seven ancient wonders of the world, seven days of the week, seven circles of the universe, seven deadly sins, and seven basic musical notes.
      Yea I really think you're right that that's probably the reason why 7.

      I mean, sure 7 is cheaper than 10, but so is 8 and 9, so that in itself doesn't really explain it. The spirituality surrounding the number 7 does though.
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  • Profile picture of the author SuperKC
    I think it just looks good on paper.. $97.. and its not confused with 99c which looks cheap.. $99/99c.. the dollar store kinda ruined it for everyone.
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  • Profile picture of the author sagittarius
    Some say there's a psychological reason behind it... I'm not really sure. $7 sounds cheaper and reasonable compared to either $10 or $9. $3 sounds more of a high quality product than $2 or $1. In fact, $1 sounds impossible for a price, like something's telling you "there's surely is an upsell for this" or "I'm sure this is a trial" or "Don't bother, the value is probably just worth a dollar".

    $100 sounds expensive. $98 sounds nearer to $100 and $97's farther or sounds cheaper. So I guess, it's just a psychological thing.
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  • Profile picture of the author Edward Floyd
    As others have pointed out, it's a psychology thing. For some people they think that ending in "$7" looks nicer than $9.99 or even $6.99.

    There was a split-test report a while back on the effectiveness of prices ending in 7 vs ending in 9, and that is probably where some of the hype first came from.

    However, split test yourself on your own products and see what works best. Then report back here!
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  • Profile picture of the author HelpingYouBeAnExpert
    Do this send half the traffic to the ebook which is $7 and half to $10 then add it up and you'll see.
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    • Profile picture of the author Alexa Smith
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      Originally Posted by HelpingYouBeAnExpert View Post

      Do this send half the traffic to the ebook which is $7 and half to $10 then add it up and you'll see.
      I've seen.

      It sold more copies at $10. (Not just "made more money at $10": it actually sold more copies at $10, as mentioned among the tested examples in my post above.)

      As many people are rightly saying, it shows the importance of testing rather than believing so many of the other well-meaning but sadly misguided statements offered in threads like this.
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      • Profile picture of the author Paul Hooper-Kelly
        Hi Guys and Gals,

        It was Ted Nicholas who did extensive testing on the subject and came up with the '7' ending.

        Given the enormous success and long marketing experience of Ted Nicholas, we're probably wise to stick with that particular bit of marketing wisdom.

        Paul
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      • Profile picture of the author HelpingYouBeAnExpert
        Originally Posted by Alexa Smith View Post

        I've seen.

        It sold more copies at $10. (Not just "made more money at $10": it actually sold more copies at $10, as mentioned among the tested examples in my post above.)

        As many people are rightly saying, it shows the importance of testing rather than believing so many of the other well-meaning but sadly misguided statements offered in threads like this.
        That was my point and thanks for making it
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  • Profile picture of the author sarah23
    I think 7 is considered as lucky number for many, that's why many marketers use number 7.
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  • Profile picture of the author Brent Stangel
    You all can say all you want but I'll go with one of the largest retailers on the planet - Wal-mart. Go down to your local WM and see the number most prices end with. What do you know, it's a 7!

    It's prices ending with 7. There has been testing done by entities with a lot more resources then I have and they end prices with a 7. It's psychology, just like all marketing.
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  • Profile picture of the author SunnyDelight
    Its a mind thing. Your best bet is to split test and track to see what works best for you. If someone wants the product bad enough they'll pay the $7, $10, or even $100 to solve their problem.
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