Framework

Price Testing

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TeachingFrom the source
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

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