Pricing Experiments For New Businesses & Entrepreneurs

ConversionXL has recently published a fascinating article brimming with useful recommendations for entrepreneurs and new business owners that offers a great deal of advice about how to successfully price products.

Choosing the right price can prove a difficult dilemma. We all know that if you charge too much you’ll miss out on sales, but if you charge too little you’ll run the risk of failing to cover your costs and struggle to make any profit.

The article discusses numerous different experiments that evaluate the way in which people look at the pricing of products, citing examples and statistics that support those theories. One important bit of advice offered by this article is that asking people what they want to pay for a product or a service is not the way to go. The article states, “When it comes to money, people are unable to predict accurately whether they’d pay or not. It’s much easier to spend hypothetical dollars than real ones.”

It also explores the magic of the number 9 and the way in which to make it work most effectively. Even though most of us know that there isn’t much difference at all between $49 and $50, products priced at $49 will sell more than those asking for just a dollar more! Showing a previous, more expensive price above the current figure also worked to boost sales, so say announcing that your product used to be $50 dollars but is now $39 rather than $40 will also increase sales.

The article features a whole host of other experiments and pricing systems that offer invaluable advice for people looking for a pricing system. Check out the full article here.

About Sheniz Raif

I am, and think I have always been, a writer. I’ve been scribbling stories since I was old enough to hold a pen and thoroughly enjoy using my words to make people laugh or inspire them. I love going to gigs and am a professional groupie for a couple of awesome bands. I am an avid fan of socializing, football, film, and refusing to grow up! I’m also a proud member of the BODO UK team!