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Closing Sales: Good book on pricing strategy?

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  1.  
    • CommentAuthorcharlie42
    • CommentTimeJan 10th 2007
     
    Anyone got a recommendation on a good book on pricing strategy. I have a invention in the healthcare field I want to sell online. Potential pricing is between $300 - $500. What's a good starting point? Does something priced at say $299 sell better than something priced at $300?
    •  
      CommentAuthorwebwatch
    • CommentTimeJan 10th 2007
     
    Wanna be really really sure? TEST IT....
    What I like about these mindvalley guys is they thought me a lot on testing...

    im not sure how to test prices...
    but here's a test i came up with...

    prolly need heaps of traffic to get significant results.. but just sharing...

    STEP 1

    Use a split tester to show (at random) 2 versions of your site, w 2 prices.
    one price very high, one price much lower...

    STEP 2

    measure sales for each price, and bring those 2 prices closer n closer ...
    while monitoring the impact on TOTAL REVENUE (not sales)...

    Eg.

    price A = $329
    price B = $197

    Who gets more sales? Say it's Price B
    then challenge price B with price C = $249...

    try different prices, see which gives u most TOTAL REVENUE


    Mike, Vishen, any suggestions?
    Anyone has good ideas on testing for optimal prices?
  3.  
    Go to www.pricingpsychology.com. Author Marlene Jensen has a PhD in pricing and has helped hundreds of people. There's also a free e-mail workshop with some very good info.
    • CommentAuthorjoyously
    • CommentTimeJan 12th 2007
     
    Try this:
    http://myps.sitesell.com/ya_think.html
    •  
      CommentAuthormike
    • CommentTimeJan 12th 2007
     
    No pricing book is going to help you definitely answer whether a $299 price point is better than a $300. They will all tell you that from a psychology stand point $299 sound better because it makes the customer think and feel that they bough something for less than $300 but at the end of the day the beauty of online business is that it is very easy to test different price points and find out what works best.

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