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 PointSubscriptions GeneratedTotal Revenue
Control$69.95183$12,800.85
Test 1$50.00218$10,900.00
Test 2$59.95196$11,750.20
Test 3$75.00181$13,575.00
Test 4$79.95162$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 craig@cdmginc.com for a FREE consultation, and I’ll address your problems.

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