Direct Marketing Strategies: 3 Ways to leverage numbers and pricing
Interesting article about pricing, over on truthdive.com
A couple of professors out of Virginia Tech recently did some studies about how consumers react to prices.
And it turns out, HOW you present things is FAR more important than WHAT you are presenting. Which should be no surprise to anyone who’s had even a little bit of success using direct-response marketing.
So for example, when you present something like, “70 songs for $29,” this makes the deal much more appealing than “$29 for 70 songs.”
You should read the article to find out why — it’s very interesting.
While we’re on the subject, I wanted to give you a few strategies and some do’s and don’ts when it comes to pricing:
1. Easiest offer to sell is the buy one, get one.
It’s simple to understand and there’s a huge perceived value proposition in the customer’s favor here.
Same thing with buy two, get two free… buy two, get three free is even better
2. DON’T use percentages.
No one can figure out what 29% savings means. Even when it’s 29% of $100 dollars, it doesn’t matter. No one’s going to do “mind work,” to get you paid.
Plus, “percentage” is not tangible. Slashing $29 bucks off the price is easy to understand, and your buyers can translate $29 bucks into value.
Like, “Hey $29 can get me two coffees at Starbucks, cool.”
But 29%… not so much.
3. I haven’t tested this one, but based on the article I would test it out, for sure.
Since people have a hard time calculating the “per item” cost / value, I’d test giving them this number versus NOT giving them this number.
So in the example above, I’d test “70 songs for $29,” versus “70 songs for $29 (that’s only 41 cents a song!)”
My gut tells me this would help your response, in this particular situation, so it’s worthy of testing, for sure.
Now go sell something, Craig Garber
P.S. In Chapter 12 of “How To Make Maximum Money With Minimum Customers,” I reveal a pricing strategy that causes as many as 98.4% of your customers to spend more money with you. Make sure you check it out.
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