Do you think that a price point of $29 vs $27 makes a big impact on buyers? Does anyone have any experience or any split test numbers that would be real useful to me thanks. I am wondering because if I change my product price to $29 affiliates will earn $20 but I am afraid that this will hurt conversion. Any thoughts?
You have sent me a PM about this, so I'm going to answer it here, I don't thing there will be a major difference between 27 and 29, but there will be a difference between 29 and 31. Although it's just 2 bucks, you're going over that psychological barrier of 30$ which can change the mind of the customer about buying. That's why a product that is 30$ is always priced at 29.99$. I don't think 27 and 29 will make much difference, but you may go ahead and test it, if you exceed 30$ it may make a difference.
Thanks for the reply, I am planning on testing it on $29.95 speaking of which anyone know any good split testing software? Or you just use google analytics and stat counter?
Run a split test, when random 50% of page impressions use product 1 ($27) and 50% use product 2 ($29). After a hundred sales or so, you'll be able to tell the difference if it exists.
For some reason, It's been tested several times that price points ending in 7 converts better... like 47, 67, 97 ect. But, I mean all you can do to now for sure is to test it out!
Split test accelerator is the best split testing software currently available. IMO, instead of testing $27 and $29, you'd be better of doing a really long split test between: $27, $37 and $47... After the test is done (20+ conversions for each price point) don't look at conversion rates but at your profit because even if conversion is way lower at $47, you might be actually making a lot more money with that price point. In some cases you'll even get WAY higher conversions with higher price points. Good luck
Hey thanks for that Jose that is my plan for the future but I need a good split testing software. So thanks for the suggestion. Has anyone else had experience with split test accelerator or any other any software? What would you recommended? Thanks
I agree about this. You should be looking at 'Earned per hop' rather than Conversion rate, the price which has the highest 'Earned per hop' is the most profitable.
Hey there emon878. I'm posting this information from a site I was reading up on, since you said you were planning on testing $29.95. "In point of act, $4.99 is about 55% more popular and appealing than $4.95! Pricing psychology therefore indicates that by raising a product price by only 4 cents, from $4.95 to $4.99 , sales will increase much more - because the customer feels right about the price; the price feels more natural and appropriate." The example above is specifically for a product around $5.00. You might have a difference case since yours is around $30. But, essentially it is saying that "the most often-used prices will have the greatest appeal" from the general consumer's point-of-view. If there are many more products that use $29.99, than $29.95, then the general response is that a product of 29.99 will be more appealing because it is seen more often.
I strongly recommend google website optimizer which is free tool for such a basic type of testing. In most likelihood you will be able to get good help if you get into trouble which i dont forsee given the type of experiment you plan to do. Thanks Ravi
I agree, I had a look around at split test software and most of it is a rip off. I even tried one by Frank Bauer and is sneaked in a traffic leak in the form of a software image link!!! Google's is free and best. It can do A/B/C etc. or even multivariate testing.
emon, quite a few people did the test and it seems like prices ending with a "7" convert better. $27 is better than $29 $29.97 is better than 29.99 or 29.95... And as mentioned Jose Armando, try different price points. My product, LingoBasics sells better at $49.97 over $67.77 However One Month Affiliate sells better at $67 over $47 ... as you can see, cheaper price does not always mean better conversions, it really depends on the product, offer, sales page... so, test
Every product itself is unique, In terms of design and branding.. you must actually try to split test your product. this will give you better understanding of your market and give better conversions. I had noticed some good products are under priced and vice a verse.
Sometimes, keeping the prices dynamic might give you interesting results. It's often more than just pricing psychology -- it's also the 'need' of the market for the product you're offering.