Determining price is crucial in your marketing if you are selling a product.

A few cents can be the difference between a home run or a strikeout.

Case in point: American Express Publishing tested three price points for one of its publications. The control price was $19.95. Against that, they tested three different options…

1. $19.97
2. $19.99
3. $19.49

Can you guess which one resulted in better sales?

Results: If you guessed $19.99, you’re right!

Offered at that price, compared to the control price of $19.95, the price of $19.99 results in 10% better sales.

Surprisingly, the worst-performing price point was the lowest one, at $19.49.

Why do you think consumers were more attracted to a price of $19.99 than $19.49?

Want to learn more about prices and sales, call Michael at 615-933-4647 or email him at [email protected].