Are any of your products selling for $499, $497 or $49, or $47? If so, you might be interested in my answer to a recent question regarding pricing, because I learned something a long time ago about the price points that involve the number four. So listen to my answer and find out what it is.
So I gave someone some advice recently on pricing, $34.99 and $9.99. I thought it might have been $39.99, just quietly, but anyway, there’s no point giving yourself $5 discount. But I was thinking of $49.95 and $499 and dropping the one-on-one. What problems do you see with this issue?
So problems with $49, okay. The first problem is, if you deal with anyone who’s Chinese, you might start running into superstitious issues. I have found certain price points are not as popular as others. And I’m certainly not being racist. I’m just talking about my own observations here.
I sold luxury cars in an area of Sydney that was predominantly Chinese. And they would not pick up a car with a number plate with a four on it. So four is a bad number in some cultures, so just be aware of that. I’ve always found other numbers to sell better. If you’re going to do $49, you might as well make it $59. Because $59, or $39 is just as likely to sell at the same as a $49.99. It’s worth having a guess.
Now, I would say the old classic, you know, test it. But that’s bullsh*t. And I’ll tell you why. You’re not going to get anywhere near the volume you need to be able to test that and know. So you will never know if $39 or $49 or $59 is better, probably. But if I had to guess, based on people I know who have got volume that can test, people like Mike Geary from The Truth about Abs, for example, or Amazon. Do you know that Kindle on Amazon was $79 for the longest time? I don’t know how much it is now. But $79 was my ultimate sweet-spot price point for a membership. It sold really well. Also $59 sold really well, $99 is fine. As soon as you’re over 100, I think you start getting issues.
Now, if you’re going to sell for $499, there’s really no difference to $599. And you’re not that far from $799, you might as well be $999. Call me crazy but I think a $499 customer is probably similar to a $799 customer. They’re definitely not a sub $100 customer, they’re into the next bracket. And you’re not talking about three or five or 10 grand a month, so still under $1,000 a month. So there you go. If you want $49 and $499 then I would consider having slightly different price points.
The other thing that’s interesting is, have more contrast. I gave you a contrasting price, because you get very different buyers. I have a contrasting price with all my offers. I’ve got offers from $10, $99, $599, $3,000 and then beyond. And the thing is you get different customers attracted to the different price points. And you can also offer a lot more for $1,000 a month customer. You can really feel good about helping them then you can for $499. So that’s why I suggested you go with $999.
And it’s not about the stuff you give them. It’s not about this or that or whatever, you got to find your groove. And I’ve been adjusting and tuning my offers forever. Still, as of this week, literally in the last two days, I changed my offers across the board for SilverCircle and SuperFastBusiness because I’m always looking for that little sweet spot. The market moves, I move, and the competitors move. So you know the customers are changing attitudes too.
We’re in a different phase of 2020 than we were at the beginning or the middle. And I’m always adjusting and tuning, making sure I deliver the absolute sweet spot of value for my audience in whatever form that comes. So hopefully that’s helpful for you.
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