How does your experi
[2023-05-26 05:36:18 AM] : How does your experience of pricing stack up with mine? I'm trying to put together a kind of audience price sensitivity. This is very imprecise for a number of reasons but I've now got data for free, low (£59), mid (£250) and high tier (£400) pricing for the same topic. Has anyone else done something like this before? (corrected image in thread)
1 Reply
[2023-05-26 08:05:52 AM] : File hidden by Slack limit [File hidden by Slack limit]
[2023-05-26 08:12:39 AM] : this is fascinating way to view it - what do you take away from it?
[2023-05-26 08:29:27 AM] : TBH I'm still trying to get my head around it!
• The main thing is total revenue sensitivity increases with unit price.
• This means you need to convert A LOT more % at a lower price to get a meaningfully higher revenue which has a disproportionately higher impact on more expensive unit priced items. (for example 0.4% at £400 is £1500, 1% at £400 is £4000... the same ratios at £250 are 0.4% £1000 and 1% £2500)
• The £150- £250 range seems like a bit of a sweet spot.
• You can't see this but the numbers are from different list sizes and launch techniques. I think our approach (building anticipation) is between 0.5-1% more effective than (hey buy this)...
• That this is such a numbers game and I need more people on my list!
What do you see? Does this stack up with your own data?
[2023-05-26 08:32:18 AM] : I don't think our data is clean enough for this, but I would love to figure out how it lines up
[2023-05-26 08:34:24 AM] : That second to last bullet - anticipation vs "just buy" - is that a .5-1% more effective, or .5-1% higher conversion? (Hard numbers would help me understand)
[2023-05-26 08:47:27 AM] : Does this make sense? It is % conversion up lift. I've now done two lines on what I expect - verses what is real data in the top chart. [File hidden by Slack limit]
[2023-05-26 11:28:19 AM] : got it! so it's not 1% more effective, it's somewhere around 20% more effective (e.g. 6% is 20% more effective than 5%)
[2023-05-26 11:29:58 AM] : Yes, if you put it like that. How does that stack up with your feel for the approach? If I've got it right the difference is 50% more effective at the higher prices
[2023-05-26 11:35:29 AM] : The £400 is a bit if a guess but the others are based on some level of data. [File hidden by Slack limit]
[2023-05-26 04:59:34 PM] : that sounds about right to me, and also matches that effectiveness increases with. higher prices.