Here's a lesson I learned about pricing.
Posted: Mon Nov 21, 2005 11:16 pmI just raised the price of one of my products by 54%. Yes, fifty-four per cent. the price went up from $23.95 to $37...without notice!
The reason for the price increase might have been counter intuitive. The sales were not as good as I wanted. So the strategy was if that if the price were HIGHER, maybe the price would get more affiliates interested in promoting it. That is, the affiliate payout would jump from $15 to almost $25.
Sure enough, in the last forty-eight hours the traffic to that sell page has at least doubled. So affiliates did react favorably.
But that'ss not all. The non-affiliate sales have also gone UP!
Forty-eight hours isn't enough time to draw any real conclusions, but my story might be interesting to consider when you are setting your own price for your own product.
Maybe a higher price will work better. Testing could be the best approach. If I had tested, maybe I would have learned this lesson a year ago.
The reason for the price increase might have been counter intuitive. The sales were not as good as I wanted. So the strategy was if that if the price were HIGHER, maybe the price would get more affiliates interested in promoting it. That is, the affiliate payout would jump from $15 to almost $25.
Sure enough, in the last forty-eight hours the traffic to that sell page has at least doubled. So affiliates did react favorably.
But that'ss not all. The non-affiliate sales have also gone UP!
Forty-eight hours isn't enough time to draw any real conclusions, but my story might be interesting to consider when you are setting your own price for your own product.
Maybe a higher price will work better. Testing could be the best approach. If I had tested, maybe I would have learned this lesson a year ago.
