© 2010 subscription site insider, published by anne holland ventures, inc. all rights reserved....
TRANSCRIPT
© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.
Pricing Boot Camp for Subscription & Membership Sites
Presented by:
Anne HollandFounder
Subscription Site Insider
Sean DonahueEditorSubscription Site Insider
© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.
$34.99 vs $59.95
© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.
Part #1. Pricing Psychology
© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.
Insider’s Rule #1 (of 7):
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Rule #2.
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$7$70$700
$9$90$900
$95$97$99
Rule #3.
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$30s
$300s
$40s
$400s
http://www.PricingPsychology.com
Rule #4.
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Tiny Co. Entrepreneurs Big Co. Executives
Rule #5. Groups
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Rule #6.
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$200 vs $200.00
Price Tag
Rule #7.
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$200 vs $200.00
- Non-discounted price - Premium Value - Savings
PricingPsychology.com
Making your price “feel” smaller (Part 1)• How you position your price is as important as the actual number.• This format has been proven time and again to make your normal
price seem like a great bargain.What you get Value
Year's subscription to XYZ Publ. $435 Report: [title] $135 Report: [title] $95 Discount for annual conference $55 Other $60
TOTAL VALUE $780
YOU PAY ONLY $435
© 2010 Marlene Jensen, http://www.PricingPsychology.com
• The mention of a larger number before quoting your (lower number) price will increase the amount a consumer is willing to pay for your product.
• Even if the larger number has nothing to do with your price(!)
• Copy idea:– Because a subscription to [XYZ] includes [list key
benefits], we were advised to price it at $[large number]. Instead…
PricingPsychology.com
Making your price “feel” smaller (Part 2)
© 2010 Marlene Jensen, http://www.PricingPsychology.com
Examples:
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PRICING PSYCHOLOGY REPORT should be priced at $150 or more, given that the wisdom it contains from thousands of price-testing marketers could easily increase your profits by thousands (or hundreds of thousands!) of dollars. BUT... if you order today, , the report can be yours for just $47!
© 2010 Marlene Jensen, http://www.PricingPsychology.com
“If you are selling an options trading course on video, first mention your $1 million minimum private managed accounts ... your $5,000 trading advisory … and your $2,000 live seminar. By the time you get to the videos, the prospect will actually be relieved that they are only $299.”
© 2010, Bob Bly http://bly.com/blog/
Value Reminders:
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Part #2. Offers
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Weekly vs Monthly
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Use Monthly to Push Annual
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$ 10 per month$120 per year
$ 50 per month$120 per year
High to Low
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Best Choice!
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Pricing per Month (not Term)
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Initiation Fees:
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“Special” Offers
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- $ off vs % off
- Premium
- Deadlines
- Guarantees
Geo-Pricing
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Part #3. Price Testing
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Surveys = Fairly Worthless
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Except With Pricing Software
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• Discrete-choice conjoint softwarevs. conjoint analysis using “ranking form”
• 300-500 respondents minimum
A/B Price Testing
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http://SubscriptionSiteInsider.comIncluded in your Insider Membership
Key, Pick a Goal
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- Highest price per account
- Total revenue
- Most units sold possible
- Longest account lifetime
- Accounts that are easy to upsell/cross-sell to
Lessons Learned
Data Sources: MarketingSherpa Case Studies This slide © 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.
$7 vs $9 “Profits Tripled”
$59.95 vs $79.95 “Higher price won”
$24 vs $29 “No Difference in Response Rates”
$10 price increase boosted conversions
Contacts, Thanks & Q&A
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[email protected](401) 354-7555
http://SubscriptionSiteInsider.comIncluded in your Insider Membership
Michael McCurdy, TestingMom.comMarlene Jensen, PricingPsychology.comBob Bly, Bly.comMarketingSherpa.com