Recommended Reading 46 Ways to Raise Prices – Without Losing Sales Check out the link to read a FREE chapter! Also notice $20-discount savings for Pricing Psychology Report. The Price Advantage One of the best for pricing B-to-B physical products. Great analysis of the "price waterfall" opportunities. Pricing Psychology Report The only book that looks at consumer psychology and how it affects the prices you can charge. (Save $20 on it here: RaiseYourPrices.com) The Strategy & Tactics of Pricing The "Bible" of pricing, this book covers everything. Used as a textbook in MBA pricing classes.

Have you been green with envy (as I was) while big companies got to double and triple their profits by using Taguchi (multivariate) testing? While you and I did A/B tests of two items at a time, companies that could afford $1,800/month were able to test 30 different items – with 4 options for each -- all at once. And all with reliable results.

Well… the only green I’m seeing these days is increased cash from two multivariate tests. This issue tells you what I’ve learned about headlines, prices, offers, and copy from using it at my www.PricingPsychology.com website. Next issue will tell you about tests at the www.NewsletterContentGuru.com website.

Most important -- I’ll also tell you how you can start bumping up your own profits with your own (inexpensive!) multivariate program!

Should you use a combo offer?

We tested whether a combo offer (an extra option) would hurt or help e-book sales.

1. Offer was only Pricing Psychology Report for $47
2. Offer was either Pricing Psychology Report alone for $47 or in combo with 46 Ways to Raise Prices – Without Losing Sales for $99.

Results: The combo offer more than doubled the number of buyers. Further… 43% took the combo offer, which was 47% more cash. Net cash result was an increase of 249%. This shockingly high result may be partially due to a perceived increase in credibility/authority by someone who has written two instead of just one book on a topic.

Headline tests

Below are 3 headlines we testing for the Pricing Psychology Report e-book.

1. Intelligence you can use TODAY - to increase profits (our control headline)
2. PRICING PSYCHOLOGY: Learn the secrets of making your prices irrestible!
3. Prices Buyers Can't Resist! The psychology of profitable pricing.

Results: Our control headline stunk compared to either of the other two. The middle headline was the winner, but the confidence level (given by the software) said there’s a 38% chance that the third headline could be the real winner. Instead of waiting for enough orders to make that number to go below 5%, we’re going with #2 and backtesting #3.

New copy block test results

We also tested whether a new paragraph would help or hurt responses. Below is the copy we added:

New! Learn how you can test lots of items all at the same time and still have valid results! You'll get 2 LOW, ONE-TIME-COST solutions that give you the same multivariate, Taguchi-style testing that companies are currently paying $1,800 a MONTH for! With this software, you can test lots of prices -- as well as headlines and anything else you think might make a difference!

Results : Adding the copy block lowered response by almost 40%. Monday-morning quarterbacking says maybe it made the book sound too complicated for some potential buyers.

How you can get your own program for peanuts!

There are actually two companies with multivariate software, each charging a 1-time fee of $495. (For those of you who may be thinking "$495 isn't peanuts," consider how tiny an increase in your sales you'll need to pay for it!)

I went with Split Test Accelerator – because that program is more professional. For example:

• The program does not work by redirecting, so there’s no problem using it on pages where you send Google AdWords traffic.
• The program uses a temporary cookie with visitors – so that if they return to the site they will see the same version they previously saw -- essential for valid results.
• The program calculates a confidence level for you for each item tested. This is critical for website owners who may not get enough traffic for fast results. We actually ran it for 2-1/2 months before we were confident enough to stop and act on the results. Sometimes the confidence level is high enough to discard one choice before you can be sure of the winner. That allows you to make decisions faster to get rid of a dog.

My e-book biz partner Harold Fann got it up and running with just one snag. You can only use letters and numerals in your password; we used a different symbol and it caused problems. But Jim Stone, the software developer, checked it out for us the same day we asked and after that it was up and running.

Check it out for yourself! How much more money could YOU be making from YOUR website(s)?

Copyright 2006-2007 PricingStrategyAssoc.com

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