On 2/5/2013 1:11 PM, Nathan wrote:
I have concluded my experiment. I have concluded that there is price
resistance between 9.99 and 10.99.
Although I cannot isolate all factors, I do believe that out of 100
people looking at the price, 10 may be dissuaded by seeing 10.99
instead of 9.99.
I think that price resistance is probably greater than between 0.99
and 1.99 and greater than between 3.99 and 5.99, although certainly
much less than between 0 and 0.99.
Last time I looked for it, I couldn't find it, but a while back I read a
PopCap (casual game company) study about prices for their games. They
tried a number of price points: $4.99, $9.99, $14.99, and $19.99, IIRC.
They found a few strange things. First, they didn't sell enough more at
$4.99 to make it nearly worthwhile. Second, if I'm remembering right,
they ended up selling MORE units at $14.99 than at $9.99. And while the
raw units at $19.99 were lower, the profit curve was best at that point.
I think the number sold at $14.99 and $19.99 were very similar as well;
they may have even sold more at $19.99, but I wouldn't swear to it.
There are a lot of variables. I'm sorry I misplaced that link, because I
think that data would be applicable to more than just games. But you
might try a short experiment at $19.99 and see if you keep more than 50%
of your users. :)
Tim
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