Are You Testing Price Sensitivity?

Are You Testing Price Sensitivity?

Another recent tip from Ryan Deiss. He ad his team checked the price sensitivity of on of their products. They tested the product sales at $197 and at $97. They found that they had a 3 times better conversion at the lower price.

More interestingly, they then tested $197 against 2 payments of $97. Again they found the payment plan outranked sales for the full price by a factor of 3!

That’s pretty interesting stuff.

So test your product pricing. If you’re offering $97 try two payment of $47 instead. If you;re charging $97, test another price point.

In these shaky financial times we live in, you need to maximise sales and testing your elasticity is a valuable exercise.

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