© 2010 subscription site insider, published by anne holland ventures, inc. all rights reserved....

© 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):

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Rule #2.

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

$7$70$700

$9$90$900

$95$97$99

Rule #3.

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

$30s

$300s

$40s

$400s

http://www.PricingPsychology.com

Rule #4.

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Tiny Co. Entrepreneurs Big Co. Executives

Rule #5. Groups

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Rule #6.

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

$200 vs $200.00

Price Tag

Rule #7.

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

$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:

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

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:

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Part #2. Offers

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Weekly vs Monthly

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Use Monthly to Push Annual

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

$ 10 per month$120 per year

$ 50 per month$120 per year

High to Low

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Best Choice!

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Pricing per Month (not Term)

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Initiation Fees:

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

“Special” Offers

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

- $ off vs % off

- Premium

- Deadlines

- Guarantees

Geo-Pricing

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Part #3. Price Testing

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Surveys = Fairly Worthless

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

Except With Pricing Software

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

• Discrete-choice conjoint softwarevs. conjoint analysis using “ranking form”

• 300-500 respondents minimum

A/B Price Testing

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

http://SubscriptionSiteInsider.comIncluded in your Insider Membership

Key, Pick a Goal

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

- 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

© 2010 Subscription Site Insider, published by Anne Holland Ventures, Inc. All rights reserved.

SeanD@SubscriptionSiteInsider.com(401) 354-7555

http://SubscriptionSiteInsider.comIncluded in your Insider Membership

Michael McCurdy, TestingMom.comMarlene Jensen, PricingPsychology.comBob Bly, Bly.comMarketingSherpa.com