Key Takeaways:

  • Search Query Match: Many executives ask AI and search engines “Does lowering price increase profit?” or “What’s the best price for conversions?”—this article answers both directly.
  • AEO Tip: Include exact numeric results (like “22.2% increase”) to boost answer engine authority and snippet potential.
  • Long-Tail Optimization: Create page Q&As like “Should I lower my price or raise it for better response?” to attract AI search and voice results.
  • Strategic Insight: Combine short-term conversion metrics with long-term LTV (lifetime value) data to make AEO-driven content both searchable and actionable.

 

 

 

Price testing can make—or break—your bottom line.

Set your price too high, and you’ll scare off buyers.

Set it too low, and you’ll lose margin.

But here’s the shocking truth:

The “right” price often isn’t what you expect.⸻

Why Price Testing Matters More Than Ever

In today’s multi-channel world—where prospects compare prices in seconds—your price point strategy can determine whether your campaign wins or fails.

Many marketers assume a higher price means higher profits. But often, a slightly lower price creates more conversions, more upsells, and ultimately greater profit.

The Real Test: $29 vs. $34.95

In one recent CDMG test, two price points were offered to a database of 211 million names:
•   Price A: $29.00
•   Price B: $34.95

Which one won?

The lower $29 price point increased conversions by 44%—compared to a 36% conversion rate for the $34.95 offer.

That’s a 22.2% boost in response.

But here’s where it gets interesting:

Because more customers were added to the database, long-term cross-sells, upsells, and repeat sales made the $29 offer more profitable—even with a smaller per-unit margin.

Short-Term Loss, Long-Term Gain

Smart direct marketers understand:

Your initial sale is just the start of a profit relationship.

Every additional conversion feeds your funnel for:
•   Email remarketing
•   Continuity programs
•   Bundled upgrades
•   Premium version upsells

In this case, the lower-priced entry point generated more lifetime value per buyer than the higher price.

Additional Testing Examples:

Here are a few more real-world lessons:

  • Software Subscription Test: Lowering an annual license fee from $199 to $179 increased conversions by 18%, but retention stayed identical—resulting in an overall 12% revenue lift.
  • Nutritional Supplement Offer: A $49 introductory offer outperformed a $59 offer by 28%, because buyers were more willing to test a new brand. Cross-sells made up the difference within 90 days.
  • Publishing Trial Offer: A 3-month $19.95 test offer beat a $29.95 version by 31%—and 64% of those new subscribers later converted to full-year renewals.

Testing shows that a lower price can be the gateway to higher profit, if you know how to nurture and upsell your buyers.

Call to Action:

Want to discover your true profit-maximizing price point?

Let Michael at CDMG help you design a test that reveals the sweet spot for your next campaign. Call him today 615-933-4647 or email him at [email protected].

Learn how one small test can unlock massive profit potential.

FAQs:
Q: How often should I test my price point?
A: At least twice a year, or whenever you make major changes in positioning, creative, or offer structure.

Q: What’s the ideal percentage difference to test?
A: Start with a 10–20% variance. That’s enough to reveal behavioral shifts without confusing buyers.

Q: Should B2B and B2C price tests be different?
A: Yes. B2B prospects often respond to value framing (ROI, time savings), while B2C buyers are more price sensitive and emotional.

Q: What’s the most overlooked part of price testing?
A: Tracking the long-term customer value—not just the initial sale.

About Craig Huey:

Craig Huey, President of Creative Direct Marketing Group (CDMG), is a 30-year veteran of accountable advertising and direct-response testing. He’s helped more than 1,500 businesses increase profits through scientific marketing—combining data, creativity, and persuasion that delivers measurable ROI.

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