Comments on: Grasshopper Test

By: Geoffrey Moore

Geoffrey Moore — Thu, 22 Oct 2009 02:10:39 +0000

I was an old gotvmail customer and just the other day went to that page. I was part of the low to high group. Interesting.

By: The Power of Conversion Optimization

The Power of Conversion Optimization — Mon, 12 Oct 2009 15:18:40 +0000

[...] 24% more reoccurring monthly revenue – Grasshopper.com [...]

By: Stan

Stan — Thu, 17 Sep 2009 20:09:09 +0000

This was a fantastic test. I can’t reach out to my webmaster fast enough now to make necessary changes…

By: David Pavlicko

David Pavlicko — Thu, 16 Jul 2009 03:30:52 +0000

Wow! – big eye opener.
What’s funny is that I am all over that type of pricing when talking with clients, but I blew it on this. I should know better…

I wonder which one got the most $199 sales. Of course, I’m sure the revenue from the 49% increase in mid-range pricing more than makes up for any loss or minor gain in those. Great test. Love the site.

By: Karen Butler

Karen Butler — Wed, 08 Jul 2009 17:24:30 +0000

When you see the lowest price listed first, then that’s where your eyes stop. Listing the higher option in first place makes you look beyond that price to a lower option, hence the middle choice.

By: Jeremy Butler

Jeremy Butler — Thu, 02 Jul 2009 18:27:23 +0000

Thanks for the write up Anne – great post.
Brian you hit it exactly – with the first thing on our page before being the $9.95 no one saw past it, but with $199 being the first thing now its drives people to the $49 price point.
Thanks for the positive follow up.

By: Chris Goward

Chris Goward — Thu, 02 Jul 2009 16:45:36 +0000

Another great example, Anne!

You’re right, Drew, that the left-to-right eyeflow can have a psychological effect.

In my years in sales I learned the power of starting with a high price and slowly moving down, and also the benefit of giving three options with the one in the middle being the one you actually want them to choose.

Many sales and direct marketing principles transfer seamlessly online.

Chris

By: Brian Massey

Brian Massey — Thu, 02 Jul 2009 03:34:13 +0000

The left-most price would be the first to be seen. This established the value of the product. In case B, $49 was a discount. In case A $49 was a expensive compared to $9.95. This is one reason that “freemium” business models are so hard to make work. Once it’s free, anything is expensive.

By: Stephen M. James

Stephen M. James — Wed, 01 Jul 2009 20:30:49 +0000

I thought the test was asking which was easier for the consumer to understand–not the bottom line of the company. You might want to be more clear in your questions.

By: Drew Eric Whitman

Drew Eric Whitman — Wed, 01 Jul 2009 19:08:36 +0000

Great site Anne!

This same price-ordering is effective–and is a recognized rule of thumb–for direct-mail donation drives.

Here’s the psychology behind it: the presentation of the first, higher amount, makes the lower amounts seem less intimidating… more appealing… and more “do-able” from a budget perspective.

It’s tantamount to a late-night infomercial announcer shouting, “No, you won’t pay $200… not $150… not even $100…. you get the entire system for just $49.95.”

The “set up” of presenting the higher amounts makes the smaller dollar figures look that much lower.

Keep ‘em coming, Anne!

Success!

Drew Eric Whitman, D.R.S.
Direct Response Surgeon(tm)
http://www.AdSurgeon.com
http://www.Cashvertising.com