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Subscription Charges?

Discussion in 'BlackHat Lounge' started by SpellZ, Jun 22, 2011.

  1. SpellZ

    SpellZ Regular Member

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    Very shortly (hopefully within 2 months) I want to launch a product, it'll be a monthly subscription thing since I will have emails sent out to people on weekly basis. This will be split-tested 100%, but I'm wondering? What price should I charge? (Its an email sent out every week, interview-style).

    I was debating between?

    $0.99/month
    $4.95/month
    $6.97/month
    $9.97/month
    $14.97/month

    I was also considering the "drop-out" factor? I feel like if its under $10.00, the person might be like, "Oh.. its jut $9? I'll cancel it next month? and next month comes, and they say the same thing? Plus when their statement comes and they see numbers like $453, $34, $924, $22, $52, $9, $25, $67, they might not notice the $9 and look over it? which is always a plus??

    But also, maybe going even lower is even better? Like doing it for $0.99/month? Because what if people go on a site? and only 1 out of 25 sign up for the $9/month? Meanwhile if I do $0.99 I can get 12 out of 25? Which will equal to $12/month?

    In any case? any answers and comments will be appreciated.. Thanks! :)
     
  2. LiXXX

    LiXXX Newbie

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    It's really hard to blindly give feedback on pricing because we don't know what the product is and how much value it has to your market. For example, $14.97 is waaaaay too high for a few markets that come to mind, while it's very low and implies low value in others (like medical).

    Need more info...
     
  3. SpellZ

    SpellZ Regular Member

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    LiXXX, you are absolutely right. Except if I say my niche, people will know what I am targeting right away... So I guess "to best of your abilities" kinda thing...
     
  4. wowhaxor

    wowhaxor Executive VIP Premium Member

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    As said it really depends on what you offer. Something else to consider though, if you write your sales page well and don't have any real direct competition you can set your price point to whatever you like and make it sound like a good deal. That being said I always like to end with a 7, $7, $17, $57, its almost $10 but people subconsciously round it down to $5 (which its close to) so you get an extra couple bucks. I'm probably just weird about that but I always end in a 7 :)
     
  5. SpellZ

    SpellZ Regular Member

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    @wowhaxor, that is what I'm leaning towards... On the sales page make it $7, but when they go to PayPal, it'll actually be like $6.97... Reason I'm thinking of doing it that way is when they get their bank statement...

    $7.00 will jump out more then
    $6.97

    Since most transactions come with cents

    $53.53
    $232.94
    $45.21
    $7.00
    $52.42
    $11.99

    ------

    $53.53
    $232.94
    $45.21
    $6.97
    $52.42
    $11.99

    I feel like less people will opt-out and stay with the subscription long after they stop reading the newsletter. + To tell you the honest through a $14.97 would blend in better then $6.97, but to get people to sign up for almost $15 I think is 10x harder then getting those same people for $7