The $7 Product – Myth, Reality, Or Self-Fulfilling Prophecy?
By Mike Adams
You may have noticed the explosion of $7 products and the $7 script phenomenon. You could hardly miss it!
This all started when a well-known marketer released an ebook in which he contended that $7 was the perfect price point for impulse buys. He claimed that if a product was $7 or below, people were more likely to buy because the price was in the ballpark of what they would pay for other impulse buys, like going out for lunch. And of course he then released a $7 script designed to sell things for, you guessed it, $7.
The next thing you knew, products that were previously selling for $19.95 or $27 were selling for $7. $7 products were everywhere.
Now most direct marketers will tell you that if you that if you have a good offer and good copy, you are usually better off selling for more rather than less. Logically, it makes more sense to sell a $97 product than a $7 product. Theoretically it’s the same amount of work.
I have noticed though, at least with my lists, that there really does seem to be a dramatic increase in sales when the product is priced at $7 or under. I often get as much as an 8% conversion or more at $7 compared to a 1-3% conversion at $27. That seems weird to me. After all, $27 isn’t really a huge price tag either in today’s economy. But with that difference in conversion, a product may actually produce more dollars in total sales at a $7 price point than at a $27 price point!
So is there really something magical about the $7 price point? I think there is. But I think it’s the magic of expectations. You see, so many people bought into the $7 phenomenon that tons of products were released for $7 each. So it’s become a self-fulfilling prophecy. People are used to seeing ebooks priced at $7, and even collections of multiple ebooks priced at $7.
People are so used to it that when they receive an offer priced at more than $7, they subconsciously feel like it is overpriced. They could be getting 30 ebooks of 100 pages each for $27 – less than $1 per ebook. The problem is that with so many people selling things for $7, it starts to feel like a bad deal whenever the price of anything is more than $7, even though logically they would never expect to be able to purchase books so inexpensively in a bookstore.
I have noticed that even at $9, conversions can drop precipitously. There can be much more of a change than one would expect with only a $2 difference. After noticing this repeatedly, I can only assume that the $7 phenomenon has become an expectation, a self-fulfilling prophecy.
So the question becomes what to do about the $7 phenomenon now that it has become such an expectation. The easy way out is to just price things at $7. And I must admit that I often do that, as it makes for easy fast sales. But I don’t always do that, because I’m not sure it’s good to feed the expectation of such a low price point. Most good products really are worth more than $7.
Maybe it’s time that someone comes out with a report extolling the magic of the $97 price point! After all, I would much rather be getting an 8% conversion at $97 per sale than $7 per sale, wouldn’t you?
Mike Adams is the owner of Gigantic Resale Rights. Looking for tons of resale products to feed your $7 (or $97) sales? Get all of the resale rights products you will ever need with a membership at Gigantic Resale Rights.
This article courtesy of SiteProNews.com