Sometimes even a few cents can have a big impact on sales. Case in point: American Express Publishing tested three price points for one of its publications. Three of the prices were within 5 cents of each other. The biggest range in price was 50 cents. But the results were significant.
Test: Starting with a control price of $19.95, American Express compared these three price points to its control price.
- $19.97
- $19.99
- $19.49
Before you read on, can you guess which one resulted in better sales?
Results: If you guessed $19.99 you are right! Offered at that price, compared to the control price of $19.95, the price of $19.99 resulted in 10% better sales. The worst price point was actually the lowest price: $19.49.
If you’re interested in learning how to set your price point to boost your response and sales, let’s talk. Call me at (310)212-5727 or email Caleb at [email protected].
Note: Want to see how an offer increased profitability? See “How to dominate a market,” here.
Here are the rest of this week’s articles:
Warning: Not Responding to New Customers is Death to Your Future Sales
Copy Tip: Build SPECIFICS into your headlines and subheads