pricing – Red Hot Internet Marketing

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… Read More »Are You Testing Price Sensitivity?

Want to Increase Business?

There are FIVE measures that you need to know in your business, according to Brad Sugars’ Action Coach model:

#Leads
Conversion Rate
Average Sale Value
#Sales per Customer
Profit Margin

Many people I consult with are not able to tell me most of these numbers. That’s scary. No matter what business you run, you need to know the numbers and understand their relationships and impact. Never rely on others to totally look after your finances and never relinquish responsibility for knowing what those numbers are and how they are arrived at. I’ve worked with one woman running $750million dollar business who had teams of people in Finance – the CEO ALWAYS knew her key numbers and if any were under-par she would be asking short and sharp questions!