3 Research Studies That Reveal Smarter Pricing Tactics. It might be the easiest way to make an instant impact on your bottom line. Tinkering with your prices. Pricing your products is an insanely important part of maximizing your sales, yet many times entrepreneurs are comfortable going with their “gut” on pricing. That’s unfortunate, because there are numerous techniques that entrepreneurs can utilize that guarantee increased returns and higher profits, all from simple pricing adjustments. If you are looking for smarter pricing tactics, look no further than these three research studies. 1 – Price anchoring As it turns out, chest-thumping about low prices may not be the smartest move to make in your pricing efforts.
New research from Stanford University reveals some interesting effects that the process of “price anchoring” has on our minds. In a test that involved selling CDs on the auction site, eBay. The researchers then “flanked” this $1.99 album with two other albums. Guess what happened! Could your offering benefit from a higher price point? Mind Mapping Software - Create Mind Maps online. Our plans & prices. How to Increase Your Mobile App Sales With A/B Testing. Marketing your mobile app can often feel like a dark art. With over 600,000 apps competing for sales in each app store, an app’s icon acts like a mini banner ad, so choosing the right one can mean the difference between success and failure. But when you’re presented with 3 icon options, how can you be certain which one will perform the best?
If you drop your price from $1.99 to $0.99, will your sales double? Or triple? Or more? Should your description start with your ranking “#3 Best Selling Zombie App!” Or with a list of features? Many app marketers will do their research, compare competitors and best sellers and then answer these questions based on gut feeling and intuition. The iTunes app store and Google Play don’t allow for proper, scientific A/B testing, so marketers are forced to make their choices this way. How to “Micro Test” Your App There is a better way to make these decisions. How to Find the Perfect Icon During development they had 3 design concepts to explore. Set Up an A/B Test. How to price: Lessons learned from our first attempt. With today’s launch of a whole new pricing model on Filepicker.io, we figured it would be a great opportunity to share with the community our experience around selling and pricing a SaaS product as a startup.
As the folks at 37 Signals say, this is based on our experience, so use good judgement in applying it to your situation. Lesson #1: List prices on your website The temptation when you’re first building a product is to shy away from making a commitment to a certain pricing scheme. It’s understandable - you’re afraid about writing down a price when there is so much more you want to learn about your customers, their willingness to pay, the features and functionality that they would pay for, etc.
When we first launched, you had to ask us for a price - we would ask you all sorts of questions about what you were building, whether you would pay $X for Y, how many users you had, and all sorts of other questions. Lesson #2: Price on value, not on cost Lesson #3: Iterate Discussion on HN. Entrepreneurs: Please do your homework on the competition | The Social Analyst. Choosing the right market opportunity will make or break a startup. Unfortunately, most entrepreneurs choose to tackle markets that are over-saturated, not realizing their mistake until it's too late.
I've listened to thousands of pitches from thousands of startup founders. Most of the time, these pitches don't stand up to my scrutiny for one reason or another. Some don't have differentiating features while others simply don't tackle big enough market opportunities. One of the biggest stumbling blocks that trips up most entrepreneurs though is their lack of market and competitive research. They come up with a startup idea and start writing code without even realizing that somebody has already done it.
I experienced this issue last weekend when I hosted the Angelhack hackathon. The problem is simple: too many entrepreneurs jump into fundraising long before they've done their due diligence. Journalists and investors are walking startup encyclopedias. Data Extraction, Web Screen Scraping Tool, Mozenda Scraper.