Optimizing your product's price point through strategic testing can significantly influence its conversion rate. The right pricing strategy and a product-market fit are crucial for delivering value to the market, thereby driving conversions and revenue.
1. The magic number 9
Ever noticed how many prices end at .99? That’s because $9.99 feels a lot cheaper than $10, even though it’s just one cent less.
It's like when you see a game online for $49.99 instead of $50, it somehow seems like a better deal.
Example: Netflix charges $6.99 a month instead of $7.
2. Start high, go low
When you list products or services, show the most expensive option first. This makes the cheaper options look even more affordable in comparison.
It’s like when you see a fancy phone for $999 and then a similar one for $499, the second one seems like a steal.
Example: Lists premium product first and cheaper models after.
3. Highlight the savings
Showing customers how much they’re saving by marking down prices from a higher original price can make the deal look too good to pass up. For instance, if an ebook was $59 and is now $39, showing both prices makes the deal look sweet.
Example: An e-commerce site shows a "Was $60, Now $45" price tag on a pair of sneakers.
4. Use smaller font for prices
Making the font size of the price smaller can actually make the price seem less intimidating. It's a subtle trick, but it works on a psychological level.
5. Simplify big numbers
When prices get into the thousands, dropping the comma (e.g., $1500 instead of $1,500) can make the price seem lower. Fewer characters = smaller price in our minds.
6. Soften the price with words
Describing a fee as "a small $4.99" instead of just "$4.99" can make it feel more manageable. It's like saying, "It's just a little bit" to make it seem less.
Example: You can even say “One price for lifetime access” like I’m doing for my ebook.
7. Offer products in bundle
Offering products together at a discounted rate makes customers feel like they’re getting a special deal. Like getting a phone case, screen protector, and earbuds package for less than buying each item separately.
Example: If you are selling multiple courses online, bundle them and advertise on each page, you can make a lot more this way.
8. Flash the word "SALE"
Just seeing the word "SALE" next to a price makes it more tempting. It’s even more effective if you can show the old price too, so people see what a great deal they’re getting.
Example: Udemy nails this strategy, "Was $199, NOW $14.99 SALE!"
9. Set a smart free shipping limit
If your average order is $30, set free shipping for orders over $35. People will likely add more to their carts to hit that free shipping mark.
Take it to the next level by showing this on the checkout page, and pop-up.
10. Offer installment plans
Breaking down the total cost into smaller, monthly payments can make a big purchase seem more doable. It’s easier to think about paying $25 four times than $100 all at once.
Use Klarna or any other service to offer that or just do it via subscription.
Using these strategies can help you find the sweet spot for your prices, making your products or services irresistible to customers. Whether you're selling gadgets, games, or subscriptions, the right pricing tactic can make a big difference in how many people click that "buy" button.
1. The magic number 9
Ever noticed how many prices end at .99? That’s because $9.99 feels a lot cheaper than $10, even though it’s just one cent less.
It's like when you see a game online for $49.99 instead of $50, it somehow seems like a better deal.
Example: Netflix charges $6.99 a month instead of $7.
2. Start high, go low
When you list products or services, show the most expensive option first. This makes the cheaper options look even more affordable in comparison.
It’s like when you see a fancy phone for $999 and then a similar one for $499, the second one seems like a steal.
Example: Lists premium product first and cheaper models after.
3. Highlight the savings
Showing customers how much they’re saving by marking down prices from a higher original price can make the deal look too good to pass up. For instance, if an ebook was $59 and is now $39, showing both prices makes the deal look sweet.
Example: An e-commerce site shows a "Was $60, Now $45" price tag on a pair of sneakers.
4. Use smaller font for prices
Making the font size of the price smaller can actually make the price seem less intimidating. It's a subtle trick, but it works on a psychological level.
5. Simplify big numbers
When prices get into the thousands, dropping the comma (e.g., $1500 instead of $1,500) can make the price seem lower. Fewer characters = smaller price in our minds.
6. Soften the price with words
Describing a fee as "a small $4.99" instead of just "$4.99" can make it feel more manageable. It's like saying, "It's just a little bit" to make it seem less.
Example: You can even say “One price for lifetime access” like I’m doing for my ebook.
7. Offer products in bundle
Offering products together at a discounted rate makes customers feel like they’re getting a special deal. Like getting a phone case, screen protector, and earbuds package for less than buying each item separately.
Example: If you are selling multiple courses online, bundle them and advertise on each page, you can make a lot more this way.
8. Flash the word "SALE"
Just seeing the word "SALE" next to a price makes it more tempting. It’s even more effective if you can show the old price too, so people see what a great deal they’re getting.
Example: Udemy nails this strategy, "Was $199, NOW $14.99 SALE!"
9. Set a smart free shipping limit
If your average order is $30, set free shipping for orders over $35. People will likely add more to their carts to hit that free shipping mark.
Take it to the next level by showing this on the checkout page, and pop-up.
10. Offer installment plans
Breaking down the total cost into smaller, monthly payments can make a big purchase seem more doable. It’s easier to think about paying $25 four times than $100 all at once.
Use Klarna or any other service to offer that or just do it via subscription.
Using these strategies can help you find the sweet spot for your prices, making your products or services irresistible to customers. Whether you're selling gadgets, games, or subscriptions, the right pricing tactic can make a big difference in how many people click that "buy" button.