I love testing especially when it comes to pricing and marketing experiments, so lets look at a couple of tests where a small change in price had a BIG change in conversions.
2 different packs of gum are offered for 63 cents each, and 46% of shoppers buy one. But when one of those packs is offered at 62 cents, and the other at 64 cents, a whopping 77% of shoppers purchase.
Bottom Line: A slight difference in price on two very similar products may equal a large increase in sales.
Do you offer more than one similar product (such as ebooks) from the same page? Then give them slightly different prices and test the results.
Here’s another test:
A two beers are offered, one at $1.80, another at $2.50. 80% choose the more expensive beer.
Next, a third beer is added at $1.60. Now 80% choose the $1.80 beer and only 20% choose the $2.50 beer (no one buys the $1.60 beer.)
Whoops! Adding a cheaper alternative in this case just lost the business a lot of money.
A third trial is tested – this time there are 3 beers offered at $1.80, $2.50 and $3.40. Result? 5% buy the cheap beer, 10% buy the expensive one and 85% buy the medium priced at $2.50.
So, buy adding a cheap alternative the business loses ground, but by offering an expensive alternative the business does even better than the original test.
That is the power of testing. To see these tests along with 3 others, click here:
Download’able Quote Card “5 Marketing Experiments : Small Changes in Price = BIG Changes in Conversions”