Testing Your Price? Watch "The Number on the Left"

In a price of $40, the number or digit on the left is 4, and the digit on the right is zero. Be careful when changing the left digit.

Example: a service business found no price resistance raising price five dollars from $40 to $45. But when they raised price another five dollars from $45 to $50, they encountered huge resistance.

Source: Marlene Jensen, “The Tao of Pricing,” www.TaoOfPricing.com

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Triple Your Orders by Not Cashing Your Checks

In a “30-day hold” offer, you tell the customer she can try the product free for 30 days. And you also promise not to cash the customer’s check – or charge her credit card during that 30-day trial period. If the customer is not 100% satisfied, she may return the product. You, in turn, return her check uncashed (or put no charges through on her credit card) … which means she has used your product for 30 days for free.

According to marketing legend Gary Halbert, a “30 day hold” offer can triple your orders … but will also double your refunds.

Is this a good thing?

Well, consider that normally your promotion generates $1,000 in orders, and with a 10% refund rate, you net $900. If you triple the orders and double the refund rate – from 10% to 20% – you will gross $3,000 and net $2,400. Wouldn’t you be willing to put up with more refund requests if you would multiply your net revenues by 2.6, as in this example?

To read more of Gary Halbert’s genius marketing ideas, visit: http://www.thegaryhalbertletter.com