Does anybody believe that you can just put together a product, create a little ad copy and then put it online and market it like crazy and think that it will bring you success?
Shockingly enough that is the way a huge portion of online marketers do it.
This post I want to talk a little bit about the importance of price testing. You will be surprised at the importance of it to your business success.
Why is it so important to test your pricing?
First of all you need to know what it is you are trying to accomplish by your pricing and selling of your product. Do you think the only reason to price a product is to make the most money you can off of it? No it’s not; at least if you want long-term success with your business.
Let’s take a typical example to learn a few lessons. Say you want to find out which price will bring in the desired response you’re looking for. So you send out 3 different prices to different groups of customers. You price the product to one group at $10.00, another at $20.00 and the third at $30.00.
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When the response come back, usually you will find that the lower number actually sells the least because people will think that the product won’t be of a high quality.
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Next you will usually find that the middle price will outperform all of them because of the reason stated above and the $30.00 being too high.
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But, here is the thing that is important to learn: A lot of times in tests like these the product priced higher won’t sell as much of course yet will make a much higher profit.
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Now this is why I say that you have to know what it is you’re trying to accomplish with your pricing.
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If you’re trying to give your business a quick financial boost so that you can do something that will take some money that you need quick then the higher price is the way to go.
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But if you are trying to build a business for long-term success, you should definitely go with the middle pricing strategy. Why?
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Because you are trying to build as large and quality customer base as you can. The key is that you don’t make as much on the front-end of your sells, but offer your higher-quality larger-profit products on the back-end sales.
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But the only way to know which option to use is to test it. You can really lose big if you don’t do it right. And doing it right is the way I described to you in this post.
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Send out the same copy with different prices and see what the response is. Once the responses come back then, based upon what it is you’re trying to accomplish, build your strategy around that.
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Usually for the long-term success of your business it’s best to choose that pricing which draws the largest numbers of buyers rather than the biggest profits on the first contact.
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