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...
๐ Conversions? No change.
๐ต 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?
๐ Conversions? CVR of that upsell spiked.
๐ต 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.
โJoin us in GM+ Hereโ
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.
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