MIT Study on Prices Ending with $9 - DailyBlogTips

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MIT Study on Prices Ending with $9 Posted: 27 Nov 2013 04:34 AM PST Did you know that around 60% of all retail prices end with a 9 digit? No one is sure about why the digit 9 in specific, but most marketers and economists know that ending a price with it tends to increase sales. For those who want empirical evidence, back in 2003 some MIT folks did a quite interesting study around the subject. The basically used a mail-order company that sells women’s clothing, and the priced the same pieces at three different levels: $34, $39 and $44. Care to guess the results? The $39 price tag outsold the other, by a factor of 15% up to 30% in some cases. If you didn’t get the insight yet, let me re-phrase it: the same product sold more units with a price of $39 then with a price of $34! The same results were found when they used $44, $49 and $54 price levels, as well as $54, $59 and $54. In other words, the price tag ending with a 9 virtually always outperformed the other price tags, were they higher or smaller. Here’s the conclusion from the paper: We have presented three ?eld experiments demonstrating that $9 price endings increase demand but that the effect is context dependent. The effect is stronger for new items that customers have seen less frequently in the past. Pretty interesting huh? Here’s the link to the PDF if you want to read it in full. Wanna learn how to make more money with your website? Check the Online Profits training program!

Are You Building a Business or Just a Blog? Posted: 26 Nov 2013 12:17 PM PST Not every blog makes money. And not every blogger wants to. That's fine. But if you're blogging with the hope of making money, and you're currently getting little or nothing for your efforts, you might need to stop thinking of your "blog" and start thinking of your "business". Some bloggers will say that their blog is their business. Here’s a different way to look at it. Your blog is a publishing platform that allows you to market to people around the world, 24/7. That's a pretty amazing thing! But your blog by itself doesn't bring in money. You could write brilliant posts, draw in thousands of readers, and still not make a penny. Yes, you can run ads on your blog – but you'll need lots of traffic for those to pay off. (I make a living blogging, but I'd be making less than $100/month if I relied on ads alone.) Most bloggers find other ways to monetise, even if they use ads as well: we've covered the key ones here. And whether you're selling a product or a service, or even promoting someone else's product with an affiliate link, you need to think and act like a business. Today, take some time to think about your business, not your blog. Consider: How does your blog make money? Do you need to make your products / services / affiliate links / etc more prominent? What could you or should you change to be more business-like? As I said at the start, of course you can simply have a blog in order to share your thoughts with the world. If you want to make money, though, you need to stop thinking of yourself as just a "blogger" and start thinking of yourself as a "small business owner". Let us know in the comments whether this brings up any new thoughts for you – and tell us what you're going to change. Wanna learn how to make more money with your website? Check the Online Profits training program!

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