profile

Growth Models

Play with your pricing!

Published 14 days ago • 1 min read

What if doubling your price didn't hurt your sales?

Sounds crazy, I know.

Doubling the cost of an offer feels like it would lead to...

  • Lower conversions
  • Annoyed customers
  • A fast track to losing sales, revenue, and profit

Here's the thing though.

There's way more elasticity in your pricing than you'd think, and if you're not testing things, you're likely leaving easy money on the table.

Here's 2 recent stories about playing with pricing to increase revenue and profit.

First up, a story from a GM+ Community member (you can get similar help and conversations by joining us here).

This member had a good front-end funnel bringing people in at profit from FB ads.

Pricing was on the list of things to test and she actually doubled the cost of one of the bump offers within the funnel.

Guess what happened...

📊 Conversions? No change.
💵 Profit? A nice little bump.

Nothing else in the funnel was touched.

The same ads, the same sales pages, the same offers.

But, by increasing that offers price, she was taking home more profit per customer coming through.

But, don't think just increasing your prices is the way to go.

A while back I wasn't happy with the AoV of one of my own funnels.

It was running with a positive ROAS, but I thought it could be better.

Looking at it, I thought there was too much friction, and the easiest way for me to reduce the friction was to reduce the fee of an offer.

So, I slashed the upsell fee of one offer by 50%.

It took a few days to stabilise, but guess what happened?

📊 Conversions? CVR of that upsell spiked.
💵 Sales? The AoV of that funnel increased by $15.

$15 extra per customer might not sound like a lot, but if you're driving a few hundred sales per month, it adds up.

This is all a long winded way to say that testing your pricing is key if you want to be making the maximum profit per user possible.

So, if you've not tested your pricing recently, look at what can be tested and where the biggest impact might be made.

And if you want help, join us in GM+ to get the advice and experience of others already testing this stuff.

​Join us in GM+ Here​

Speak soon,

Pete

P.S. - I'm considering doing a workshop on the 3 core elements for offer success.

Hit reply and let me know if you'd be interested in this.

Vagrants, Vagabonds, and Villains Ltd, Unit 16535, 13 Freeland Park, Wareham Road, Poole, Dorset BH16 6FA
​Unsubscribe · Preferences​

Growth Models

Analysing and experimenting with growth marketing

I've spent ~10 years helping digital brands grow. I share what I know and what I'm experimenting with in this newsletter.

Read more from Growth Models

You ever get that feeling you're missing something obvious in your biz? That there's a simple fix, tweak, or change that can turn an average approach into something pretty damn awesome? Happens to us all. Here's the thing. When I started the GM+ Community I was toying with the idea of making it an "expert-led" community. Putting myself at the top and positioning the whole thing around "join this and I'll fix your business". But I always wanted more of a collaborative area and community there....

1 day ago • 1 min read

In the GM+ Community, I'm working on templating an easier-to-implement ascension model - something that takes your low-ticket customers to your high-ticket offers with predictability. I've been diving into the ascension models of 7 and 8-figure businesses to better understand what works, and I shared the initial learnings and thoughts in the community. Member AS dropped an awesome critique which included the below. In any promo emails sequence, you generally want to make sure that you have...

3 days ago • 1 min read

Most entrepreneurs I speak to dream of attracting clients effortlessly—posting content, watching the likes roll in, and having customers line up. They'll point to big names who have done exactly this and say "if they can do it, why can't I?". And yeah, you can do it. But, there's a couple of things you should think about before relying on this approach to launch offers. The people they're looking at usually have either... Been doing it for ages and spent a long time creating a following...

11 days ago • 3 min read