Split testing for Best Product Price?

[qpuncturist]

HI Everyone,

It's my first real post - I'm not scared! - and I wanted to get opinions as to how to go about figuring out the best price point to sell at.

Another post had this quote-


Moreover, before the launch, once you have everything set up, make 2 sales letters of your product with different prices - ex. 97 usd and 147 usd and run a some test campaigns on Google Adwords or Y! Search marketing to find out the conversion ratios and how they are affected by the price. Then you will be able to decide which price would bring you more profits.

Is this the BEST way to do this? Are there other options?

Originally I was going to pick a price and limit that launch price to the first 50 copies and post the information on my blog, relevant forums etc. This way I had an initial blast of instant money coming in which I can use.

But, I would like to know how to figure out both the best price for the introductory offer and for after that!

Any advice would be truly appreciated!

Thanks ;D

[Mike Merz]

Hey, Justin.

The reason I think the quoted advice worth following is that you want closed testing in as close to a control environment possible as not to skew results ... you can't really do that offering the same small group different offers ... it will only tee them off! LOL


This way I had an initial blast of instant money coming in which I can use.

That's not a good variable to bring into an equation when your looking for the right answer. ;)

Best,

Mike

[qpuncturist]

HI Mike,

Thanks so much for your answer. I see where you are coming from!

Since we are essentially dealing with statistics here, is there an "ideal" number of clicks before I should decide on my price?

I read a REALLY long post in WF on this and people were throwing around numbers like 500 to 1000 are good for split testing.

What do you think? ???

Where's the cut off for how many clicks to decide what my price should be?

Should it be split tested 3 ways? 4 ways? With 3 or 4 different price points? ???

SO many variables here!

Thanks for the valuable advice to help end my confusion! :-[

[Ralf Skirr]

Hi Justin,


Since we are essentially dealing with statistics here, is there an "ideal" number of clicks before I should decide on my price?
It's not only about clicks, but also about conversions. You need a significant number of conversions before you can be sure about which version to choose.

Ralf

[qpuncturist]

You need a significant number of conversions before you can be sure about which version to choose.

How significant of a number?

How many is enough before you can decide enoughs enough?

[Sam Sterling]

Hey Justin,

When testing conversions, whether it's a price/offer/headline change, I always use 30 actions.

So after 30 sales each, I then decide which one converted better.

I know it might take a little longer, but the longer the test period, the better the results.

Hope that helps,

Sam