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Conversion rate testing - Opinions needed

Discussion in 'Making Money' started by 2011nfl, Apr 19, 2013.

?

How would you do it?

  1. Keep it at the lower price

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  2. Raise the price back up

    0 vote(s)
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  3. Test each price for longer

    0 vote(s)
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  1. 2011nfl

    2011nfl Supreme Member

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    So I am testing conversion rates with different prices on one of my products, and here is what I came up with:


    Day 1 - Day 2: My price was $41.95..... I had about 100 form submissions, and 1 sale for the whole 2 day time period.

    Day 3: I decided to lower my price to $9.95 to see how much the conversion rate would change..... Still, I had about 100 submissions, with only 1 sale.....BUT, where as at $41.95 it took 2 days to get 100 form submissions, it only took about 4 - 5 hours to get 100 submissions at $9.95

    So basically, the conversion rate stayed virtually the same, but the submissions multiplied... Now the thing is, what I was thinking is that if I keep it at $9.95, I will get a lot more submissions, and will be able to offer them other products at a later time through email.

    But then again, if the conversion rate didn't change, then chances are that person would have also paid $41.95 and I would make more from the sale.

    How would you all do it?
     
  2. srinu0812

    srinu0812 Supreme Member

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    My vote goes to the third option.
    May be you should have tested for a small period. I think you need to do this check for some more time.
     
  3. jstover77

    jstover77 Executive VIP Jr. VIP Premium Member

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    You need to have a much bigger data set. One day isn't nearly enough data. Split test it for at least 30 days.
     
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  4. AR!ZONA

    AR!ZONA Regular Member

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    True that! I have found that my customers prefer to buy on mondays, while traffic spikes on thursdays and fridays.
    You need to run a campaign for a while, at least a few weeks to see real data.

    I suggest you go for a higher price, market the product better, and when sales aren't to your liking you put it on sale for a limited time. That's after you can determine a good price range for the market/product.
     
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  5. 2011nfl

    2011nfl Supreme Member

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    I definitely agree. It's just the way I am getting my traffic is a little different than normal methods... I think I can at least do a week each way though.
     
  6. Furious George

    Furious George Supreme Member Premium Member

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    I would look at the trends over a longer period of time. It's hard to say.

    I will say, people will buy almost anything at 19.99 and lower. Over that is a hard sell, I'm sure your product is fine, but 19.99 is pretty much guaranteed to get more sales than 29.99 or 39.99 or 41.99. Really, you could test them all out at the same time over a few months and see which one does better.

    I have a digital product right now where I'm doing the same thing... the 19.99 price point seems to be the way to go. (of course I'm sure yours is unique and numbers will be different)

    Another point to consider is the headache you get when you under charge for a product from getting sub-prime customers. Remember the 80/20 rule....the bottom 20 percent of your customers give you 80% of your problems, the top 20% of your customers give you 80% of your revenue.


    edit - congrats on getting my 1000th post :p
     
  7. AR!ZONA

    AR!ZONA Regular Member

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    Furious just hit 1000 posts, time for something big?

    I 'm gonna add that my #1 product goes for $21.95
    Margin leaves me with ~$18, so for both customer and I, it's right around $20

    I think it's a good price where customer won't get pissed if the product blows (not saying yours isn't quality!)
    and where you get a decent margin.

    EDIT: Now I'm thinking maybe I should sell for $19.95 for a bit to see if sales increase...
     
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    Last edited: Apr 19, 2013