Jason Kanigan
New member
Someone was asking "Which converts better, a $37 or $47 offer?"
People jumped on and gave the lame, unproven advice that the $37 price point would automatically convert better and the seller would sell more copies.
My response:
All of you who are saying a cheaper price converts better...
I've revised this to say it more politely.
...Do you really know what you're talking about? Do you have ACTUAL EXPERIENCE with pricing? Because I do.
...Or are you parroting some advice you heard?
...And are you sure you don't have a poverty mindset? Because it's an indication in that direction.
I really don't care if you like what I just said or not: what I say is based on FACT.
I've been doing this for years and the truth is: sometimes people pay more--a lot more--for what they perceive as value.
If you have ugly acne on your face or a hereditary skin problem as I do, and someone credible puts an offer in front of you--again, credibly--saying "Here's an ebook, and for just $47 I'll explain inside how you can get rid of that ugliness in less than 48 hours"...people in that situation WILL buy. I happily pay twelve bucks for a tub of tar ointment and if you don't think that adds up, and makes $47 look insignificant over the medium term, you're mistaken.
YOU are NOT YOUR CUSTOMER.
From my own experience:
I ran a 2-hour coaching call. Originally I priced it at $97. It didn't sell.
Then I increased the price to $197. It sold a couple spots and then stalled.
I raised the price to $297. It went berserk, became an ultra-popular offer--sometimes I would do six in a week--and became a solid money-maker and intro to me for YEARS. I made well into five figures from that offer.
Another example, this time a training product:
I started it at $37. It did OK.
Then I moved it to $57. It did really well, earning $5000 one month and continuously selling.
Then I set it at $87. This package continued to sell steadily until I shut it down, finally at a $197 price point. Again, running for YEARS.
The fact of the matter is:
Prices are elastic. If someone will pay $37 for something, they'll probably pay $47.
If someone will pay $127 for a product, they'll probably pay $157.
There are price points. You can guess where these are, but they are invisible and you can trip over them: like the difference between $37 and $67. A significant factor has to be added into your deliverables if you are going to make that jump--especially if your target market has seen the $37 offer before.
Another example:
On Kindle, I had some books for $0.99 and $2.99. A friend who's better at Kindle marketing told me, "Professionals expect a quality book to be priced at $7.99. Why don't you move your prices up?" I did, and my sales figures have remained pretty much the same as before.
A higher price creates higher perceived value. There are professionals who would look at my $297 offer back when and say to themselves, "No way, it can't be that great because it only costs $297. A pro sales training program has to be at least four figures."
The WSO section on the Warrior Forum is its own little discount microcosm and not at all representative of life in the real world. Remember that.
I have written a lot more and done podcasts about pricing. You can see those here.
People jumped on and gave the lame, unproven advice that the $37 price point would automatically convert better and the seller would sell more copies.
My response:
All of you who are saying a cheaper price converts better...
I've revised this to say it more politely.
...Do you really know what you're talking about? Do you have ACTUAL EXPERIENCE with pricing? Because I do.
...Or are you parroting some advice you heard?
...And are you sure you don't have a poverty mindset? Because it's an indication in that direction.
I really don't care if you like what I just said or not: what I say is based on FACT.
I've been doing this for years and the truth is: sometimes people pay more--a lot more--for what they perceive as value.
If you have ugly acne on your face or a hereditary skin problem as I do, and someone credible puts an offer in front of you--again, credibly--saying "Here's an ebook, and for just $47 I'll explain inside how you can get rid of that ugliness in less than 48 hours"...people in that situation WILL buy. I happily pay twelve bucks for a tub of tar ointment and if you don't think that adds up, and makes $47 look insignificant over the medium term, you're mistaken.
YOU are NOT YOUR CUSTOMER.
From my own experience:
I ran a 2-hour coaching call. Originally I priced it at $97. It didn't sell.
Then I increased the price to $197. It sold a couple spots and then stalled.
I raised the price to $297. It went berserk, became an ultra-popular offer--sometimes I would do six in a week--and became a solid money-maker and intro to me for YEARS. I made well into five figures from that offer.
Another example, this time a training product:
I started it at $37. It did OK.
Then I moved it to $57. It did really well, earning $5000 one month and continuously selling.
Then I set it at $87. This package continued to sell steadily until I shut it down, finally at a $197 price point. Again, running for YEARS.
The fact of the matter is:
Prices are elastic. If someone will pay $37 for something, they'll probably pay $47.
If someone will pay $127 for a product, they'll probably pay $157.
There are price points. You can guess where these are, but they are invisible and you can trip over them: like the difference between $37 and $67. A significant factor has to be added into your deliverables if you are going to make that jump--especially if your target market has seen the $37 offer before.
Another example:
On Kindle, I had some books for $0.99 and $2.99. A friend who's better at Kindle marketing told me, "Professionals expect a quality book to be priced at $7.99. Why don't you move your prices up?" I did, and my sales figures have remained pretty much the same as before.
A higher price creates higher perceived value. There are professionals who would look at my $297 offer back when and say to themselves, "No way, it can't be that great because it only costs $297. A pro sales training program has to be at least four figures."
The WSO section on the Warrior Forum is its own little discount microcosm and not at all representative of life in the real world. Remember that.
I have written a lot more and done podcasts about pricing. You can see those here.
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