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.