The Price is Right. Or Is It??
Pricing your products and services is both an art and a science. Get it right, and you can secure yourself a profitable future. Get it wrong, and you’ll find yourself without orders and going out of business.
Effective pricing is critical to your business success. It plays a huge role in your company’s viability and health.
To that end, what can you do to ensure that your pricing is on target? The answer:
Leverage Your Website to Test Your Pricing
The beauty of your website is that you can make adjustments quickly in order to test multiple pricing scenarios, and fully track, measure and analyze the data to see what pricing works most effectively for your business. For example, the following are possible testing elements:
- Primary offer price
- Pricing for bundles and package deals
- Pricing for upsells
- Pricing for cross-sells
- Percentage discount
- Dollar amount discount
- Membership discount
- Membership privileges
- VIP options
- Discounts for large purchases
- Subscription models
- Free shipping offers
- Headline on the pricing page
- Images on the pricing page
- Calls to Action (e.g., “Buy Now” vs. “Add to Shopping Cart”)
- Limited availability offers (e.g., “Offer good until Saturday”)
- Billing options (e.g., “Bill Me Later”)
Remember, the specific product or service price is merely one variable in pricing. Test multiple variables until you achieve the audience demand and the profitability mix that will fuel your business growth. And given the web’s flexibility, you have the advantage of leveraging your website to fine-tune and fine-tune and fine-tune some more.
These are just a few suggestions to help you leverage your website to drive your revenue growth. If you need additional help, let me know below. Thanks!
November 25th, 2009 at 5:49 pm
This is good stuff. I also recommend pricing your products with a “7″ at the end instead of a “9″. You will see this all over sales pages everywhere on the internet. People know that “$99″ is really “$100″ but they seem to be more willing to jump at a “$97″ deal. It sounds cheaper. You lose two bucks per sale but this trick should increase your conversion rates.
Cheers,
Cody
December 2nd, 2009 at 12:15 pm
This is a great article! Pricing is one of the most important things when you are trying to sell a product. I think that is very important to know your market, know your product, and know your competitor! When pricing your product, you want to price it to sell! I think this article offered many great tips, and it also highlights the importance of when “the price is right” what it can do for your business!
December 22nd, 2009 at 6:18 pm
Speaking of IS the Price is Right…check this article
http://www.ehow.com/how_5736622_win-price-right.html
March 9th, 2011 at 6:55 pm
I am a 3rd party wholesaler and am trying to figure out what price to sell my products to local retail stores? I sell the products at trade shows at a 4 times mark-up to the customer equal to my competition. But that same customer could purchase the product from the web for 1/2 the price I sell it to them for. The local retailers could also do that same research…so what would the ideal pricing formula be for my situation? Example: $20 wholesale cost from internet distributor x 2 = internet retail x 2 = local market value