“Test different prices systematically rather than assuming you know the right price. Eben discovered that raising his ebook price from $29.95 to $39.95 actually increased both the number of sales and total revenue, defying conventional wisdom about price-demand relationships.”
About Price Testing
Price testing is the systematic experimentation with different price points to discover optimal pricing through head-to-head comparisons. He emphasizes that internet businesses have a unique advantage in price testing due to lower testing costs compared to offline businesses that face challenges with printed materials and split testing logistics.
Eben's own ebook provides compelling proof - when he raised the price from $29.95 to $39.95 (a 33% increase), he achieved his record sales day, selling 10 copies and demonstrating that higher prices can increase both revenue and sales volume simultaneously.
Misconception
“Higher prices always reduce sales volume”
Higher prices can actually increase sales volume because they signal greater value to customers
Relevant Clips35
- Teaching
Raising Price From $29 to $39 Increased Both Sales and Revenue
Test different prices systematically rather than assuming you know the right price. Eben discovered that raising his ebook price from $29.95 to $39.95 actually increased both the number of sales and total revenue, defying conventional wisdom about price-demand relationships.
- Teaching
Always Test Higher Prices on Every Launch
Yes, always test higher prices. Sometimes higher prices actually increase sales volume while obviously increasing revenue. Test multiple price points on every launch - even a 10% price increase that maintains conversion rates can double your profitability.
- Teaching
Commitment Bias Makes Entrepreneurs Blind to Failure the Longer They Build
The commitment and consistency principle causes humans to adjust their self-image to fit their actions, making entrepreneurs more convinced and blind to failure the longer they work on untested projects
- Teaching▶ 7:03
Seven-Step Niche Validation Sequence
A 7-step niche testing sequence starts with keyword research and traffic analysis, progresses through surveys and consultations, and ends with full product launch only after validation
- Teaching▶ 18:01
Understanding Opportunity Is the Heart of Entrepreneurial Success
Emotionally detach from your business ideas, put them in the marketplace, measure everything, and judge them on merit rather than pursuing ideas you personally like for years.
- Teaching
Reveal Price at the Start Not the End
Experiment with revealing prices at the beginning of webinars instead of waiting until the end to reduce presenter anxiety and maintain audience engagement
- Teaching
Price Testing Can Increase Both Sales Volume and Revenue Simultaneously
Price testing can dramatically increase both sales volume and revenue simultaneously, defying conventional wisdom about price-demand relationships
- Teaching
Premium Prices Attract Clients With More Skin in the Game
When you charge premium prices, you attract a different caliber of client who has more skin in the game and greater commitment to results
- Teaching
Use Affiliate Marketing to Identify Winners Before Building Your Own Product
Affiliate marketing serves as market research to identify winning products before investing in creating your own products and services
- Teaching▶ 1:39
Reference Live Training Prices to Justify Digital Pricing
Reference your live training prices to justify lower digital product pricing - 'If this was live training, I'd charge $2,000+'
- Teaching
Professional Sales — Understanding Needs and Moving Prospects to Purchase
Raising prices can actually increase sales volume, not just revenue, because higher prices signal greater value to customers
- Teaching▶ 8:23
If You're Convincing People to Buy You've Already Lost
Successful marketers have no attachment to what works or doesn't work - they test everything systematically like McDonald's
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- Teaching
Price Testing Reveals Counterintuitive Customer Behavior
Price testing is a fundamental marketing strategy that can reveal counterintuitive results about customer behavior
- Teaching▶ 31:24
Price Testing — Raising Prices Sometimes Increases Sales
Price testing can dramatically increase revenue - raising prices sometimes makes people buy more of your product
- Teaching▶ 3:09
Teaching What You Learn Immediately Accelerates Your Own Learning
Price testing can reveal that higher prices actually increase both sales volume and revenue simultaneously
- Teaching▶ 3:37
Customer Testing Is Ongoing — Not a One-Time Research Phase
Testing and customer focus should be an ongoing activity that never ends, not a one-time research phase
- Teaching▶ 9:21
Customers Only Tune Into WIIFM Not Your Brilliant Ideas
Nothing works until the customer votes with their money - customer purchase is the only true validation
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Systematic Price Testing With Head-to-Head Comparisons
Price testing should be done systematically with head-to-head comparisons to discover optimal pricing
- Teaching▶ 7:56
Expert-itis: When Knowledge Makes You Blind to Marketing
Marketers expect customers NOT to buy and know that 8 or 9 out of 10 marketing attempts won't work
- Teaching
Internet Businesses Can Test Prices at Lower Cost
Internet businesses can test prices more easily than offline businesses due to lower testing costs
- Teaching▶ 6:01
10% Price Increase With Same Conversion Rate Can Double Profitability
A 10% price increase that maintains conversion rates can double the profitability of an offer
- Teaching
Higher Prices Can Increase Both Sales Volume and Revenue
Testing higher prices can dramatically increase both sales volume and revenue simultaneously
- Teaching▶ 7:34
A 10 Percent Price Increase at Steady Conversion Can Double Profitability
A 10% price increase that maintains conversion rates can double your profitability
- Teaching
Raising Prices Can Increase Both Revenue and Sales Volume
Raising prices can actually increase sales volume, not just revenue per unit
- Teaching▶ 0:37
Test Multiple Products Simultaneously to Make Money Fast
To make money fast, test several products and services simultaneously
- Answer
Why Most Marketing Attempts Fail and What to Do Instead
Marketers expect most attempts to fail - knowing that 8 or 9 out of 10 ads, appeals, or products won't work. This realistic expectation makes them test systematically and create better marketing because they're not attached to any single approach.
- Answer
Price Testing Revealed $300 Outsells $200 for the Same Course
Run head-to-head split tests with different price points. Test one price for a period, then test another, measuring both sales volume and total revenue. Eben found his course sold better at $300 than $200 through systematic testing.
- Answer▶ 5:40
Why Higher Prices Signal Quality and Drive More Sales
Higher prices signal quality and value to customers. When Eben raised his book price from $30 to $40, he sold 10 copies in one day—his best sales day ever—because customers perceived the higher-priced product as more valuable.
- Answer
Price Signals Quality More Than Product Content Does
Price signals quality to customers. Two identical books can have vastly different values—one selling for $10, another for $1,000—based purely on how customers perceive their worth and the price point signals quality.
- Answer
Price Testing — Systematic Method to Find Optimal Price
Price testing involves systematically changing your product prices to see how it affects sales volume and revenue. It's a fundamental marketing strategy that can reveal counterintuitive customer behaviors.
- Answer▶ 9:16
Customer Purchases Are the Only True Validation of Strategy
A marketing strategy only works when customers vote with their money. Nothing is validated until actual purchases happen - theoretical value or expert opinion doesn't count as proof that something works.
- Answer
Higher Prices Signal Greater Value — Price Psychology
Higher prices can signal greater value to customers, leading them to perceive the product as more desirable and actually purchase more. Price testing is essential to find the optimal price point.
- Quotable▶ 1:27
Raising Prices Sometimes Makes People Buy More
you can do things like raise the price sometimes and people will buy more of the thing
- Quotable▶ 9:44
It Only Works When the Customer Votes With Their Money
It doesn't work until the customer has voted with their money.
- Quotable▶ 5:51
The Day the Price Increase Sold More Books
the day that I raised the price I sold more copies of the book