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 strike out.
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 difference options…
- $19.97
- $19.99
- $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? Give us a call at 615-933-4647 or email Michael at [email protected] to share your thoughts.
