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Psychology of Clickbank Product Pricing

Discussion in 'Clickbank' started by Sniper, Feb 6, 2009.

  1. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    I was wondering if anyone might know the reason behind why people price their clickbank (or any digital products) at such obscure prices. For example, goods sell for $97, $67, $47.

    It seems that there must be some sort of reason behind this, and lots of digital sellers do it, but in the brick and mortar world things are always $xx.99, or $xx.95.

    I personally sell my CB products for $39.95 and, well, hey, if I changed it to $41 (for example) would that improve my sales?
     
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  2. lewi

    lewi Jr. VIP Jr. VIP Premium Member

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    Same reason as car dealers sell cars for $1,995 and not $2000

    It seems alot cheaper than it is (apparantly) and has been done for years and years and years...
     
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  3. colombiano

    colombiano Junior Member

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    I have read somewhere that number 7 makes people buy more. I donĀ“t know if this is true but it could be the reason why CB products are priced 47, 67, or 97. Try selling for $39.97 and test your results.
     
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  4. 195471

    195471 Regular Member

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    Actually, I believe it was Mark J0yner who did a test awhile back where he compared three prices: $95, $97, and $99. The $97 price out-pulled the other two by a significant margin, and now every guru and guru-wannabe uses prices that end in "7". If I remember correctly, this was discussed in his Confidential Internet Intelligence Manuscript.
     
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  5. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    So 7 is the magic number then. I might run a test on my products to see how things work out. I guess I will move from $39.95 to $47. That will be a little more commissions for my affiliates, so they should be happy. I am just wondering if the price jump will stop people from buying. But then again, if there is a seven, who knows ;)
     
  6. lewi

    lewi Jr. VIP Jr. VIP Premium Member

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    Let me know how it turns out.... 7 does make alot of sense being the magic number so thanks for the info another post-it note to make LOL
     
  7. zhagijs1

    zhagijs1 Jr. VIP Jr. VIP Premium Member

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    sniper go ahead and try 47 just say u added some great bonus thats why the price goes up or say lucky few got good discount now they have to pay reg price. def keep us informed how this test works out. you can always go back to first price. good luck!
     
  8. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    Price has been raised and so far sales are still good. I won't really have any decent data for another week or so. As for justifying the increase, there is no need. My product is number 1 in my niche and it is also the cheapest, and with the price increase, I am still the cheapest... or should I say most inexpensive.
     
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  9. crappypaste

    crappypaste Junior Member

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    My marketing professor told me that sellers price their products ending in odd numbers - like 1,3,5,7,9.
    Don't know the psychology behind that one though.
     
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  10. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    Ok, so my just over a month-long experiment has come to some conclusion. I adjust my payment price from $39.95 to $47. I have noticed a visible decrease in sales, but there are many external factors that could affect this. Either way, I have dropped my price back down to $35.95, and if after another month's time, my sales stats return to normal, then I will know that $47 was a negative change.
     
  11. dangregory

    dangregory Registered Member

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    Maybe you should try a price point of $37? For me the use of 7's on my ebooks and reports really works well. Through cross-tested the sevens always outperformed other amounts, especially when I cross tested against even numbers like 14.00, 12.00, vs. 17.00 or 27 or 37.

    Dan
     
  12. shafty

    shafty Junior Member

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    Guys i just had a brilliant idea...

    Just price your goods at either $7, $77 or $777

    With all those 7's everyone's gonna buy..
     
  13. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    Well shit. I'd hate to say this, but it must be a total fluke. Today has been my best day for sales for the month of March since I lowered my price back down to $39.95. Oddly, I reduced my price by $8, yet I create substantially more overall revenue.

    Maybe people spend more on Thursdays ;).. any ways I'll keep this thread updated.
     
  14. JayC71

    JayC71 Newbie

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    I would guess that the second number in those prices is not what caused the reduction then subsequent increase in sales... it's the first number. IMO, buying something for $4x.00 is much different psychologically than buying something for $3x.00. Anytime you raise a price by $8 you will likely see a decrease in sales, regardless of the magic number.

    I'd bet that a more accurate comparison of the "7 theory" would be to price your $39.95 product at $37.00. You'd lose a small bit of profit per-sale, but if the "7 theory" holds true you would see a spike in sales which would more than make up for it.
     
  15. jimbobo2779

    jimbobo2779 Jr. VIP Jr. VIP Premium Member

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    Yeah Im wondering why you chose to go for 47 instead of 37. Common sense would suggest that going from 39 to 47 would generate a rapid decrease in sales. Do you plan on trying 37 to see if it does actually change your number of sales?

    Jim
     
  16. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    Yes, after the end of this month test. I'm at $39.95. Sales have consistently increased already, but I like to collect at least a month's worth of data to get a more clear picture.
     
  17. calm

    calm Registered Member

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    Why not $39.97 ?
     
  18. No Hat

    No Hat Junior Member

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    Ted Nicholas said that in stores prices that end in 5 sell better and in direct response prices that end in 7 sell better.

    He also said there was one price point he could never sell a product successfully. I'm not positive but I think it was around $70.
     
  19. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    The answer to this is - SPLIT TEST!

    In my years of experience as a vendor, I have found that there is no ideal "one price fits all". It depends on the product and the DEMOGRAPHIC of the customer base.

    Only by split testing different price points will you know which performs better.

    Mancar
     
  20. No Hat

    No Hat Junior Member

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    I agree with mancar487. Ted Nicholas' observation was based on thousands of split tests. Long before the internet Ted was having split testing software created.

    He is famous for selling a book about forming a corporation. He said he wrote hundreds of times more words to sell the book than the book had in it. That's testing.

    Dan Kennedy spoke at the same seminar as Ted Nicholas. Dan had lunch with Ted. Dan said he would have spoke for free just to have lunch with Ted.

    So hell yeah, test everything, that matters.