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Does Lowering Your Prices Really Result In More Sales?
This is the time of year when I usually start thinking about (obsessing over?) pricing. As in, raising or lowering the prices on paysite memberships. I've recently raised prices but I'm also fiddling with that, trying this price point and that, searching for the optimal 'sweet spot'. But here's the thing:
This "sweet spot" we hear so much about is actually differant for every website! You can look and find many, many Memberships selling for:
$14.95
$19.95
$24.95
$29.95
$39.95
I think it really depends on the type of content you have, the frequency of updates, whether your stuff is in HD or not, how much bonus material/websites you can offer and interactivity (forums, model chat, etc). But once a website settles on this 'sweet spot' do they then find that by lowering prices their sales increase?
Short-term we see this in mainstream every day. Weekend specials, this Holiday sale and that "Super Sale Tuesday" type deals. We see it in adult, too, most usually through email marketing, offering discounts and cross-sells. But aside from these limited time offers does lowering prices "across the board" lead to overall sales or less sales?
I think there is a point where you can devalue your product and offer it at too low a price, just as you can price yourself out of the market. The trend I see, of course, is lowering prices, especially during the upcoming Holiday Season. But I'm wondering if this is out of necassity/desperation or if, indeed, you can double or even triple sales by simply lowering your prices.
Lowering prices: yes or no?
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