TAS 041 Pricing Strategy That Increased Sales By 50% – Test Results

In this episode of The Amazing Seller podcast I share how this one pricing test increased sales by 50% and can be used on any listing. I always say how you should be testing various things in your business and see what works.

Here's the numbers from the test and my notes for the show.

Test #1
1.Sales were stuck at 40 to 50 per day and competition was creeping in.
2.Decided to lower by $4 to $15.97
3.First day 88 sales – $503 Profit – $57 More Profit
4.50 sales at $19.97 = $446

Benefits – More Sales = More Reviews = Higher Conversions = More Sales

Tested changing back to $19.97 only  – 37 sales day 1 and then back to 45 sales

New Price –  $15,090 Monthly Profit
Old Price –  $13,380 Monthly Profit

Additional $1,710 per month profit

Test #2

Lowered the price by $2 to $17.97

Results:

64 Sales = $490 Profit

Increased sales by 24 units

Before price change – 50 Sales = $446

$44 More Profit and More chance for Reviews

$1,320 per month additional profit

New Price – $14,700 Monthly Profit
Old Price – $13,380 Monthly Profit

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Big Takeaway

Test pricing even after you've been selling for a while.

New products – price them to sell, but also test higher prices and see if that helps or hurts sales.

NOTE: Test for at least 3 days and then evaluate.

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Links Discussed:

How To Increase Your Conversions – 5 Tips

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3 comments
  • Hi Scott;
    Nice testing result. However, one thing you’re not taking into account is the fixed cost of the inventory you’ve bought and shipped to Amazon. Sure, you’ve sold more at a reduced price in a shorter time span, and appear to have made more profit, but in the end, your overall profit on that inventory will be less, not more.

    You also need to be aware of the weekly up and down sales cycle of the product. In my case, sales (consistently) drop by at least half on the weekends, and peak around Wednesdays. You have to run your testing around these parameters, or the results will be skewed. Or you should test a price change once for the middle of the week, put the price back for another week, then do the same price change for the weekend. Something like that.

  • Yes but you only tested one side of the curve. You could test to see if a higher price would give you more sales. Sounds counter intuitive but your product might have the reputation and equity now to carry it off. Let us know how it turns out.

  • Very interesting. Thanks for sharing the numbers. I’ve actually found the opposite. That is, raising my price has increased sales. I’ve tested lowering the price and sales have pretty much stayed the same but raising the prices has increased sales by about 10%. Now, I manufacture my own products and have a luxury, premium brand so that certainly has an affect.

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