If you charge $47 for a product, will you make more than if you charge $27? Think about it… It’s not just the price that matters, it’s also the conversion rate.
If $27 converts at nearly twice or better the rate of $47, then $27 is a better price point for you. But what if you charge $37? Maybe $37 will turn out to be the winner, but you won’t know unless you test. Plus if you have any cost to fulfillment, such as if you’re providing services, then you will need to factor that in as well.
It gets complicated real fast, doesn’t it?
But years ago I heard about the magic of the ‘100 prospect test’. The theory goes that if you send 100 people to your page, you can assess the results.
Not believing this myself, I tested a squeeze page with 100 visitors and 1,000 visitors. And wouldn’t you know it? The conversion rate on the first 100 was nearly identical to the 1,000. Since then I’ve been testing a lot of things with just 100 people, and that includes pricing.
In the above example, you could send 100 people to the $27 price point, 100 to the $37 and 100 to the $47. You can buy the traffic from a solo ad or Facebook or any method you choose. Just make sure you use the exact same method for all three.
Compare and see which price point is the most profitable. If it’s $27, then you might do another test at $17. And if it’s $47, you might do another test at $67. In 24 hours you can know for a fact – without guessing – which price point will make you the most money.
If you think about a campaign that you run for the next six months, even a small increase in your income can add up to very big money. Which is to say, don’t guess. Instead, test and know for certain. Remember and use the ‘100 prospect test’ on your next campaign.