Knowing the best marketing pricing strategy for your product or service, can quiet literally determine boom or bust. The age old question is…
“Should you try to sell more copies of your product at a lower price, or fewer copies at a much higher price?”
Here’s how low pricing and dual options netted Sacha 1500 sales and $6,600 in 2 days…
You’ll also see a contrasting method of Jarrod’s, using much higher pricing to earn $8,753 for just 242 sales.
Nathan combined elements of both Sacha’s and Jarrod’s pricing strategies to earn $19,547 from 322 sales on his first attempt, and a great deal more on his second attempt:
It’s worth pointing out the comment by Dale Foerster at the top of the comments section:
“Nathan- your 3 tier pricing model can be tweaked to drive even more sales to the top tier, the “Complete Package”. All you need to do is incorporate Dan Ariely’s decoy pricing strategy; Price the mid tier package just below the top tier. In doing so not only will you get the mid tier customers to buy up to the top tier package. Why wouldn’t they, it’s only a few dollars more. But an odd and irrational thing happens, about half of the low tier customers buy up to the top tier. In a decoy pricing strategy, customer purchase behavior is driven by thought of; too good of a deal to pass on… and jump on this pricing mistake before they figure it out.”
So what’s the best marketing pricing strategy for you?
One thing to keep in mind is your end goal.
Are you looking to build a large list of buyers you can sell to again?
Then you might go with lower prices.
Are you looking to make a killing right now?
Then use a combination of pricing strategies, offering the customer choices as to how much they spend.