As a member of Earn1KADay, I find it probably the source on the Internet for interesting discussions relevant to Internet Marketing.
As it’s a private forum I can’t reveal the exact contents here, but I recently read an interesting discussion about high and low value ticket items, as tested by a number of forum members.
The results may surprise you.
High ticket items don’t convert as well as low ticket items, but they give more profit.
This means that selling an item at $47 is more profitable than selling an item at $17, even if they are essentially the same product (perhaps with a few extra bonuses for the $47 product).
But, there’s an even more important reason for pricing items higher.
With less products, you have less customers to deal with. These are customers who might have questions, or who might ask for refunds.
In fact, the evidence from Earn1KADay showed that the proportion of refunds was lower the more the item cost. So, as well as grossing less money, this also caused less time to be needed.
Of course, $47 is only the tip of the iceberg. Imagine what happens when you try and sell a $997 or $1997. You have people who are making a substantial investment and who have already mentally committed to a project. The evidence suggests that these people are much more likely to leave you to get on with much of the process and, again, less likely to ask for refunds.
That’s only really scratching the surface of the results, but I’m sure, like me, you’ll find them interesting. Do head over to Earn1KADay if you’re not already a member and check out the full discussion.
Does your experience tally with these results? Let us know using the reply box below.