A web-based information publisher tested its price points with very interesting results.
For unlimited access to its website, the publisher’s control was $69.95.
Several different fees were suggested and then equally rotated among site visitors.
Hit the right target: Price v. Revenue (Credit: jcjones.com)
Here are the results.
| Price Point | Subscriptions Generated | Total Revenue | |
| Control | $69.95 | 183 | $12,800.85 |
| Test 1 | $50.00 | 218 | $10,900.00 |
| Test 2 | $59.95 | 196 | $11,750.20 |
| Test 3 | $75.00 | 181 | $13,575.00 |
| Test 4 | $79.95 | 162 | $12,951.90 |
Here’s where it gets interesting. At first glance, it seems that $75 reaped the highest return.
However, note that there were 218 orders at $50. This marketer must evaluate the lifetime value of its customers.
It may be wiser to lose some revenue to gain a new customer who will continue to buy in the future.
Do you have a pricing dilemma? Call me at (310) 212-5757 or email me at [email protected] for a FREE consultation, and I’ll address your problems.
