Does Lowering Your Prices Really Result In More Sales?

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  • The Porn Nerd
    Living The Dream
    • Jun 2009
    • 19784
    #61
    Originally posted by Far-L
    Is there even one program here that is actually testing based on conversions and retention what the most profitable price point is?

    Pretty much everything I saw was pure speculation as far as I could tell.

    If you go by what you think the end user perceives in terms of price/value/prestige/quality then you are not listening to the numbers but what your own internal dialog believes to be true.

    A $19.95 that rebills for 6 months with overall retention of 30% beats a $39.95 that only retains 10% for two months but the only way anyone would know that and adjust their pricing accordingly is if they tested first to make an educated guess, which is still 99% better than a hunch any day of the week.

    And that doesn't even factor in the come back offer discounts, etc.
    Well you must've missed the part where I said I A-B test everything. LOL But that's okay, I missed the part where you said I was awesome and your #1 inspiration. :D

    Just kidding. But I did test differant price points and concerning rebills I found that no matter how low I dropped the rebill price the buying pattern for MY customers was almost always a 2-3 month rebill cycle. We had one period 3 years ago where rebills lasted 3-4 months but that's gone now, with even more in the Members Area and 3x the number of websites to the network.

    When I raised the rebill price $5 however I actually saw an increase in rebills! The other issue, for my company, is I do splits with partners and affiliates so lowering prices makes the pie much smaller. If my traffic were 3x-4x what it is now maybe I would try that $19.95 price point. LOL
    Last edited by The Porn Nerd; 11-11-2013, 07:52 PM.
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      • Femjoy Michael
        Confirmed User
        • Sep 2012
        • 171
        #62
        Originally posted by beaner
        It comes from stores like target, walmart, years and years of sales research. You want to get $30 for something but make the person think they are paying in the $20's.

        Same with gas. $4.38 [99/100]. You are actually paying $4.39 but I don't know one single person who goes by a gas station and rounds that figure up.
        I think he meant where did $29.95 came from specifically. I believe that was the original MSRP for a DVD. It's still the suggested MSRP for mainstream DVD releases.

        Adult DVD releases were priced higher, but the studios tested different price points too.
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          • bean-aid
            So Fucking Banned
            • Jun 2011
            • 16493
            #63
            Originally posted by Femjoy Michael
            I think he meant where did $29.95 came from specifically. I believe that was the original MSRP for a DVD. It's still the suggested MSRP for mainstream DVD releases.

            Adult DVD releases were priced higher, but the studios tested different price points too.
            Very well could be. I started blind and started at $19.95 bc of prices i knew from store prices. Changed to $29.95 to just test it... no difference.

            When i saw those results i thought the world was my oyster ;)

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              • duk75
                Confirmed User
                • Feb 2012
                • 741
                #64
                Originally posted by Kolargol
                I agree, lowering prices didn't work, but I run a microniche site with 100% exclusive content so that's probably not very typical situation.
                Foot fetish is micro niche?
                ...Nice.

                  Comment

                  • ruff
                    I have a plan B
                    • Aug 2004
                    • 5507
                    #65
                    I thought the $19.95 and $24.95 pricing originally came from the amateur solo girl sites. Nearly everyone still left is pricing at that level.
                    CryptoFeeds

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                      • Far-L
                        Confirmed User
                        • Feb 2002
                        • 6065
                        #66
                        Originally posted by The Porn Nerd
                        Well you must've missed the part where I said I A-B test everything. LOL But that's okay, I missed the part where you said I was awesome and your #1 inspiration. :D

                        Just kidding. But I did test differant price points and concerning rebills I found that no matter how low I dropped the rebill price the buying pattern for MY customers was almost always a 2-3 month rebill cycle. We had one period 3 years ago where rebills lasted 3-4 months but that's gone now, with even more in the Members Area and 3x the number of websites to the network.

                        When I raised the rebill price $5 however I actually saw an increase in rebills! The other issue, for my company, is I do splits with partners and affiliates so lowering prices makes the pie much smaller. If my traffic were 3x-4x what it is now maybe I would try that $19.95 price point. LOL
                        Yes, sorry, I missed where you said to test. I also admit that it is still taking time getting used to the new moniker so I may have lapsed in my daily acknowledgement of your awesomeness.

                        It sounds like your issue has less to do with price points and more to do with retention because if they are not staying longer at any price point that you have tested then I would be looking more at user engagement than pricing.

                        Without having seen your member's area I can only speculate, but I think it might be the multi-site approach. While I believe that was effective years ago, I don't think it is the way to go nowadays because it tends to dilute the brand more than enhance it from instances I have seen.
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                          • The Porn Nerd
                            Living The Dream
                            • Jun 2009
                            • 19784
                            #67
                            Originally posted by Far-L
                            Yes, sorry, I missed where you said to test. I also admit that it is still taking time getting used to the new moniker so I may have lapsed in my daily acknowledgement of your awesomeness.

                            It sounds like your issue has less to do with price points and more to do with retention because if they are not staying longer at any price point that you have tested then I would be looking more at user engagement than pricing.

                            Without having seen your member's area I can only speculate, but I think it might be the multi-site approach. While I believe that was effective years ago, I don't think it is the way to go nowadays because it tends to dilute the brand more than enhance it from instances I have seen.
                            This is true for some amateur networks I have seen, where they keep adding (cheap-ass) sites and have like hundreds. LOL What I may end up doing is only advertising 16 (of my best) sites while also noting I have x number of others. Can't really kill them off or combine them as most make money.

                            Members Area is definitely key. Mine are not 'dynamic' at all, tho I have bonus material that's updated daily. I know I could do better with either rotating content or updating more but then I'm not sure about that. LOL I've talked with program owners who do just that (update and have highly interactive MAs) and their rebill ratio is not much better (if at all).

                            If your average is 6 months then I bow to you Sir. (I do anyway, with your history of long-term success.) I've only been doing this about 4 1/2 years.

                            In the end I'm focusing on traffic. I offer one-time non-recurring options and those are my best sellers so, for me, it's more about front door sales then retention.
                            Last edited by The Porn Nerd; 11-12-2013, 03:05 PM.
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                              • bean-aid
                                So Fucking Banned
                                • Jun 2011
                                • 16493
                                #68
                                Originally posted by ruff
                                I thought the $19.95 and $24.95 pricing originally came from the amateur solo girl sites. Nearly everyone still left is pricing at that level.
                                Who really knows...

                                But check out target.com . Almost everything is .99 and most clothing is 29.99... 24.99... 22.99

                                The question originally asked I took as why .95? The reason, and I do believe this, is that it follows suit with pricing you would normally see in stores and gas stations, etc.

                                Reason for 29.99 or 29.95 is to get 30 bucks but make member think it is actually cheaper.

                                It's just... well... what it is.

                                  Comment

                                  • Far-L
                                    Confirmed User
                                    • Feb 2002
                                    • 6065
                                    #69
                                    Originally posted by The Porn Nerd
                                    This is true for some amateur networks I have seen, where they keep adding (cheap-ass) sites and have like hundreds. LOL What I may end up doing is only advertising 16 (of my best) sites while also noting I have x number of others. Can't really kill them off or combine them as most make money.

                                    Members Area is definitely key. Mine are not 'dynamic' at all, tho I have bonus material that's updated daily. I know I could do better with either rotating content or updating more but then I'm not sure about that. LOL I've talked with program owners who do just that (update and have highly interactive MAs) and their rebill ratio is not much better (if at all).

                                    If your average is 6 months then I bow to you Sir. (I do anyway, with your history of long-term success.) I've only been doing this about 4 1/2 years.

                                    In the end I'm focusing on traffic. I offer one-time non-recurring options and those are my best sellers so, for me, it's more about front door sales then retention.
                                    Getting the surfer there and into the site is the hardest and most expensive part of the process, even organic traffic is costly to generate. Keeping a member is a much cheaper and easier way to increase revenue. Many programs focus so much on traffic, and trying to throw sites/niches down to attract it that they lose focus of that aspect. (Not saying that is your case, since you obviously care about your user experience).

                                    However, since you are focused mostly on the one time non recurring sale and with a focus on paying affiliates for the traffic, my guess is that only leaves you with slim margins to work with. Therefore, since you already have tested pricing, finding ways to make the site stickier seems a much easier path to better margins on the bottom line.
                                    HomegrownCash.com, the affiliate program of Homegrown Video - The Largest Collection of Amateur XXX - Est. 1982.
                                    Contact                                     - Email: farrell AT homegrownvideo D com Skype: hgfarl
                                    Newsweek Magazine - "Homegrown Video, the longest running series in the history of porn."

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                                      • The Porn Nerd
                                        Living The Dream
                                        • Jun 2009
                                        • 19784
                                        #70
                                        Originally posted by Far-L
                                        Getting the surfer there and into the site is the hardest and most expensive part of the process, even organic traffic is costly to generate. Keeping a member is a much cheaper and easier way to increase revenue. Many programs focus so much on traffic, and trying to throw sites/niches down to attract it that they lose focus of that aspect. (Not saying that is your case, since you obviously care about your user experience).

                                        However, since you are focused mostly on the one time non recurring sale and with a focus on paying affiliates for the traffic, my guess is that only leaves you with slim margins to work with. Therefore, since you already have tested pricing, finding ways to make the site stickier seems a much easier path to better margins on the bottom line.
                                        Again, I agree with you in principal but the problem on my end is I don't shoot my own content (generally). So I have limited content and must bolster the MAs with bonus material like daily-updated feeds. Considering this my rebills are pretty strong. LOL
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                                          • Rat King
                                            #71
                                            Sorry I wasn't specific enough. I get why $29.95 or $29.99 looks cheaper than $30, but wasn't sure where that general "around $30" price point originated from. The DVD makes sense though!

                                            Btw, nice advice Far-L.

                                              Comment

                                              • The Porn Nerd
                                                Living The Dream
                                                • Jun 2009
                                                • 19784
                                                #72
                                                Originally posted by Rat King
                                                Sorry I wasn't specific enough. I get why $29.95 or $29.99 looks cheaper than $30, but wasn't sure where that general "around $30" price point originated from. The DVD makes sense though!

                                                Btw, nice advice Far-L.
                                                If I remember correctly (and really, who knows) the $30 or so price point came from marketing, as in $1 a day (30 days in a month, generally). You could then join for a $1 a day, a trial, then convert that to a monthly.

                                                Now, where they get the $1 a day thing from....I know it used to take more than a buck's worth of quarters back in the day to get me off in a Times Square Peep Show booth (ahhhh those were the sticky days).
                                                Last edited by The Porn Nerd; 11-13-2013, 07:07 PM.
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                                                  • BFT3K
                                                    Too lazy to set a custom title
                                                    • Dec 2005
                                                    • 10764
                                                    #73

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                                                      • 1726cash
                                                        cipriani
                                                        • Jun 2011
                                                        • 652
                                                        #74
                                                        Sure. Test is the best idea. In the personal if i like one site i dont care about price. But...
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                                                          • scarlettcontent
                                                            www.scarlettcontent.net
                                                            • Mar 2006
                                                            • 6031
                                                            #75
                                                            Yes lower prices works better


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