07-14-2006, 10:29 AM
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Confirmed User
Industry Role:
Join Date: May 2001
Posts: 8,313
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Quote:
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Originally Posted by SteveLightspeed
Ok, let me ask this, TawneeStone.com used to sell individually for $34.95. You guys reviewed it and said "That's too much".
Ok, I dropped the price of her site to 29.95, and your sales DROPPED. And your reviewers still said "That's too much".
So I said, "What if we give 5 full sites for $34.95, effectively dropping Tawnee's site to $7?" You guys reviewed it, and said "Only 5 sites for 34.95? Thats too much."
Ok, how about TEN sites for $39.95 -- we're down to $4 per site now. You guys reviewed it, and said (paraphrasing) "HOLY SHIT, $40!!! That's ridiculous!"
To me, I've slashed my prices by offering bulk discounts. Your latest was "Only 10 sites? Why not all for $40?"
I'm constantly adding sites to our network. 10 sites for $40 is $4 per site. 20 sites for $40 is $2 per site. 40 sites for $40 is $1 per site, but you guys will still say "Thats TOO EXPENSIVE!"
Well, I'm sure you understand that ADDING sites to my network doesn't LOWER my costs!
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Steve you mention that you are dropping sites to $7 a site. The truth is you aren't dropping any price. You are increasing the charge on the client's card from $29.95 to $34.95. You aren't adding any costs to your bottomline, you are simply re-packaging your product to milk an extra $5 from the surfer and put yourself in a situation that will improve your retention as the client has a higher perceived value of the purchase they just made. |
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