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?

everyone loves a deal

Get your own merchant account, dont be silly.

We've played the pricing game quite a few times over the years and one thing has always seemed to be certain:

If your content is good and people like it, they will join your site regardless of the cost so long as it's not something stupidly outrageous; and provided they were willing to spend money in the first place.

Sell them on the site and the content, not the price.

Yes. Basic law of economics.

:1orglaugh

No lowering it to $15 isn't going to make you twice or three times more.. If the price is too low they will think its a trick or cheap content. Price it what you think your content is worth and then offer a non recurring price at $5-7 more..

And what do you get for $15 a month ?

This is exactly what I am noticing, too.

PS: Love it how a sound pops up when you open "Silent" Bucks. :thumbsup

Like a lot of people in this biz - I am struggling to give it away...

Right on,

I'll also note that those "sweet spot" adult site price points are usually picked out of folks' asses without the least bit of testing or spreadsheet analysis of actual costs. We like to think of adult as an industry of innovators, but it is an industry of copiers, not just of approach and content, but of price point as well.

"Everybody charges $29.95/mo so that's what we do -- it's the industry standard!"

The $39 guys just took it up a notch because they could.

Having said that, my $8 Hulu Plus membership is going into its second year and will recur forever whether I use it or not... it's worth it when I do, not a burden when I don't...

Most of my paysites have a mid twenties join, rebilling 25% lower, non-recurring costs $9 extra to join.

I suspect a lower recurring amount, would bring higher revenues than messing around with the upfront price. A few bucks here and there wont put someone off joining initially, but too large a recurring fee and a good percent will leave and join 6/12 months down the road.

This is the current ruling theory. :2 cents:

Charge what the market will bear.

People equate cheap with crap. Don't bother if you shoot your own content. If you license 10 year old content, maybe that's another story.

True, but porn ain't Hulu Plus.
And it's also true (I believe) that the lower your price the higher your traffic volume's gotta be; in other words, if you're struggling to gain traffic then offering way lower prices will just kill your biz. I don't believe offering a porn Membership for $8 (or so) would triple your sales. Could it?

I like the idea of playing around with odd numbers, like $28.47 a month recurring etc.


Actually, I used to offer initial at $29.95 rebills at $24.95 but raised the rebilling price to $29.95 and saw an increase in rebills (and revenue, and payouts to affiliates). I think you're leaving money on the table by not raising your rebill price to equal that of the initial cost. Try it for a month and see for yourself. :)

So how about keeping the price the same and "giving away" free Hulu Plus accounts! Now we may be on to something.

I would Say No.

:1orglaugh haha I never thought about that! It was just something the designer added when I had it redone in 08'.

I also agree with you about having the rebilling price the same as the initial these days.

People think that offering a higher non recurring is saying that you don't care about or want rebills. truth it's more about a lot of surfers aren't looking for a rebilling memberships or have been burnt by not being able to cancel easily so they'll pay extra for non recurring. People that pay more for non recurring are the ones that cancel recurring memberships before ever logging into your site the first time..

If your selling cookie cutter bullshit then do what ya gotta do to make the sale. If your combining niche, quality, updates etc... an occasional sale may be okay but no need to whore out when the quality is there.

Back in 2003 when I started a small web hosting company I was faced with $2.99, $3.99 etc... competitors and I choose to say fuck them and stick to my guns on pricing. I may have had less customers than them but less customers at a higher price point equals out and less customer support was needed further reducing operational costs.

We've kept our female bdsm site at $30.95usd for the past few years. All original, exclusive content shot by us.

Our male bdsm site (original content) we've kept slightly lower at $28.95usd.

I'm going to try both for a few months each then because I certainly felt that after raising non-recurring over 30% above the normal recurring membership, that id been leaving money on the table for many years.

Those subscribers clearly wanted the guarantee of a one month only billing and were prepared to pay for it. So at least now, even if they do only join for one month, it's 1.5 months of revenue. A reasonable percentage of those non-recurring members always sign up a handful of times a year in any event. So, why not, lets see what raising the rebill does :)

U get sales lol

For me the sales don't change much. Some sure, but not much.

What changes is profitability and chargeback rates. Buyer's remorse goes up with higher prices and a lot of assholes these days like to charge back to deal with it.

But if I lower my prices under the threshold where consumers aren't concerned about cost then after billers and affiliates take their cuts there isn't much left.

I have decided to focus on quality and value and charge a decent amount. I get more Chargebacks then I would like but I never have trouble paying my bills.

I agree, lowering prices didn't work, but I run a microniche site with 100% exclusive content so that's probably not very typical situation.

it is easyier to lower a high price , than to raise a low price

Most questions on this forum pertaining yo traffic, sales and conversions are easily answered by simply following traffic optimization rules 1-10.

Rule 1) Test
Rule 2) Test
Rule 3) Test
Rule 4) Test
Rule 5) Test
Rule 6) Test
Rule 7) Test
Rule 8) Test
Rule 9) Test
Rule 10) Test

The question to answer is "what works for ME, with my methods, with my sites etc". Not posing the question "what are the universal rules" to a bunch of mindless twats, all lacking in even basic level math and reasoning skills who spend 90% of their day commenting on government conspiracies, republicans or blaming tubes for their many and persistent failures.

You are talking about complex system with a multitude of variables, any one of which (or combination), done well or poorly or being entirely absent can dramatically influence the outcome, independent of price points. One tiny variation in variables can have a massive influence on outcome. This is the very problem of predicting the weather. Everyone's many variables are unique to them and also tend to be highly fluid and changing. Everyone's answers are unique to their own unique experience and also tend to be dynamic and ever-changing.

Test test test. Create rules. Test the rules. Test some more... then act accordingly.

There is a reason that the most emotionally flawed, insane or dysfunctional people in this industry typically have or do make the most money. They don't ask questions. They don't doubt themselves. They don't think about consequences. They act. They act with ruthless and tireless repetition with very little self doubt or questioning.

I can point you in the direction that will help keep 300% of your sales potential on the table.....hit me up....oops never mind I see you already there :) Happy Holidays Pea

Spot on with your analysis. I always say what works for one business doesn't necassarily translate to another (which is why these 'How are sales this month for you?' threads are so funny to me; "sales are great!" and "sales suck!" are always in the same thread, proving my point). Cams vs dating vs paysite membershps vs penis pills - apples and oranges.

But even if you run paysites chances are YOUR paysites are differant from mine, in content, design, overall approach. So even then information is subjective. This is why I always A-B test every change I make and act accordingly. Example:

I recently raised prices but also changed my Join buttons so that they were BIGGER and EASIER TO READ. LOL Guess what? 22% drop in sales WHAMMO. Changed the old buttons back = 22% rise in sales (or, back to 'normal'). We're talking about changing the Join button from 21 pixels high to 30 pixels high, a 9 pixel jump in size. That equaled a 22% drop in sales. LOL

Changing colors, buttons, this or that, all of it affects sales so i agree totally with your analysis. I started this thread to see what others are experiencing because tho i agree 90% of people in this adult industry are fucktards it doesn't mean I can't learn from their mistakes (even if they don't realize they're making them).

I guarantee a trial will give a boost to signups.

How many and how often they rebill will depend on your members area!

This is very true. With trials rebills are basically the whole ballgame so your MA better be hot. :)

Personally, I just don't like the idea of giving someone the option of checking out my shit for a buck (or however low the trial price) then hoping he either likes my shit enough not to cancel or forgets to cancel. Oh boy. LOL

No, give me full memberships all the way. Also, splitting revenue that small is also a pain if you have partners.

Here is something to think about. You have never opened up your own merchant account and explored any options which exist when doing so. You have never had just a trial option and you can't, with experience, post on the results. You do not know why someone may cancel, or keep rebilling, because you don't offer strictly rebilling options (maybe you tried at one point, I don't know).

Splitting $1 is as easy as splitting $100... it is just a split.

Do not take my post wrong... I have enjoyed our past discussions both on ICQ and this board. I will put this out there for you to consider... anyone of the current PORN NERD sites... I could double the revenue on them within 3 months after *MY* way. As long as it's a site with a solid history of stabilization and the traffic to the site remains (i.e. if you upload vids to tubes you need to keep uploading the vids to tubes).

A straight up comparison. I know you have a lot of stuff on your plate, but until you actually fall to the dark side and realize all that is available... you can raise, lower, lower-raise anything you want... the results will always be the same.

I do agree with your comment about the size of a join button could make a 20% difference. What I am saying though is *those* little details also come down to the join page... the most important page for any signup. And you, as of now, have very little control over.

So I just made an offer... I will double sales on any one of your sites as long as you let me do it completely my way. Then you can post back the results, good or bad.

I would never give billing control of my company over to someone else Beaner. Besides, then YOU would be the dreaded "3rd party biller", which I find quite ironic.

Also Beaner, you have no idea the volume my business does compared to your experience with a single amateur interracial cuckold site. So sorry my friend but no thanks. Not to be rude but I am absolutely more than capable of handling merchant accounts (and all that goes with it) on my own.

Also, for the record, I have absolutely done "rebills only" as a business model (my first 2 years in business), have offered $1, $2.95 and $5 trials before (all with little success), and have experience with many differant types of join options (SMS, phone, check, etc). So I come to these conclusions through trial-and-error experience and (most importantly of ALL) A-B testing.

You know neither my history nor the size of my operation nor the scope of my traffic. But thanks for the offer. :)

Fair enough... you have never had control of your join form though. And that is the biggest problem.
Not sure how I would be a third party... we just throw the forms up on your site, doesn't matter.

I will leave with this statement from someone else:
you're a fucking idiot, shut up.

here's a post of mine from 2005:

Quote:
CC Bill -
Uniques 7849
Sales 3
Ratio 1:2616

VXS Billing -
Uniques 6586
Sales 18
Ratio 1:366
Same site, switched to it's own billing. 900% increase. Down to basically, turning off a scrub.

https://gfy.com/showpost.php?p=19848447&postcount=136

There is a lot of truth to it... I've seen it now in mainstream, seen it in adult.
I don't think it is the scrub though that would make those numbers increase... actually I know it's not. The scrub (or lack of) certainly helps, but from my experience that is not the *BIGGIE*.

I tried though :)

Wow did you just draw conclusions off a whole 7k visitors

This :2 cents:

??.........

"Price elasticity of demand" should have come up earlier in this thread than post #40 or so :D.

http://en.wikipedia.org/wiki/Price_elasticity_of_demand

I will concur with TheSquealer's Ten Rules.

I agree with you (and TheSqueler). I A-B test everything these days. LOL

But for matching competitor's prices: X-Art is also my main 'competition' (I also upsell them in Members Areas) for I run www.erosexotica.com and www.felluciablow.com and www.touchthebody.com. But Met-Art is also a competitor, and they charge $39.95 for a single shot, $29.95 recurring. MassageRooms, Dane Jones etc charge $24.95 recurring. So this 'erotic niche' has various price points (and I would argue Met-Art over X-Art being bigger but maybe not).

Erotic/HD I think should be worth more so I'm charging $39.95 for my new HD sites. Also, how much direct competition are we talking about here? Someone who wants to join X-Art for $24.95 will NOT join Met-Art for $29.95 or $39.95? No, I don't believe that logic. I think in your specific case you should A-B test raising your prices. I think you're leaving money on the table, as they say. :) Perception is everything and your content is stellar so charge more for it. (Free advice, worth what you paid for it LOL)

But aren't you a network of different sites and different themes? How are you competing with met-art, which is a softcore, teen, pic site?

Met-Art is not direct competition for X-Art. There was demand from Met-Art customers to extend their product to hardcore. Brigham and Colette filled that demand.

We know most porn customers are multi-purchasers of porn products. A person may have membership to both x-art and met-art at the same time, or at different times in their purchasing cycle. That said, the key is retention. You have a network because you are striving for retention, which is good.

Let's use our site as an example. Joymii.com and X-Art have been main competitors for a long time, but X-Art is bigger. When we tried to sell above their price point, sales declined. Since porn customers are multi-purchasers, many do have awareness of pricing. Like I said, it is harder to sell above the price leader, but not impossible, or until you become the price leader.

This data is what I saw, managing hundreds of affiliate programs during my stint as a tube webmaster.

Mark, have you looked at other networks as your main competitor? For Example, WTFbucks?

Here's a question... Where did $29.95 even come from in the first place?

U suck at the internet and have no clue about shit. Can't wait to meet u one of these days at a convention

True, I do run a network of various sites but I meant those websites specifically (ErosExotica, Felucia Blow, Touch The Body) were Met-Art's and X-Art's "competition". They are extremely unique so there's really no comparison but close enough. LOL

WTFBucks - along with Gammae's network and a few others - are also my "competition" but they too have differant content and setups. But generally-speaking I ignore what my "competitiors" are doing anyway because chances are their traffic, affiliates and overall promotion are very differant from mine.

I've also noticed that what works for other affiliate programs and sites does not always work for me so I try to balance out what I see other sites doing with my own experiences. But end of the day what you say si right: you tried raising prices and sales went down. Not rocket science there, right? LOL

Best of luck, Joymii is quality stuff!!


Suck my asshole and choke on my shit you fucking loser.

How's Amateur Reality doing? :1orglaugh:1orglaugh:1orglaugh

It comes from stores like target, walmart, years and years of sales research. You want to get $30 for something but make the person think they are paying in the $20's.

Same with gas. $4.38 [99/100]. You are actually paying $4.39 but I don't know one single person who goes by a gas station and rounds that figure up.

U talk a big game but u really are a fucking pussy along with your coward friend Ruff. Fuck u both cocksuckers. Does it really seem like I own that fucking site u dumb motherfucker. lol

http://i279.photobucket.com/albums/k...e-dickhead.jpg
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http://i279.photobucket.com/albums/k...e-dickhead.jpg
http://i279.photobucket.com/albums/k...e-dickhead.jpg
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he was pasting from my original quote in another thread where I used that to reply to swirlsidiot, where I was quoting my own post from another board in 2005 :upsidedow