Using Randomness To Refine Price Point

January 15th, 2009 | Posted in Advertising, affiliate marketing, Making money, Marketing, Money Issues | Comments Off on Using Randomness To Refine Price Point

If asked, you would probably say that you’re fully aware of your price point but in truth, without some market research you’ll never know what your optimum price point is. In a way, it doesn’t actually matter very much what you consider your product to be worth because, in the end it’s value is only as high as the public is willing to pay.

A good way to go is to vary the price of your product for the first few days and gauge public response to it. Once you have a few days of price and sales data, you can chart the price against the number of sales at that price. The result should be fairly obvious where the two figures plateau.

Yes, it’s possible that a few people will complain and maybe even ask for a refund but that will be only a few if there’s actually any at all. Handle any such complaints quickly and quietly with full or partial refunds as fits the situation. After a few days you will have identified the best price point to maximize the profit per sale.

Technorati Tags: Market Research, Optimum Price, Plateau, Public Response, Randomness, Partial Refunds

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