a single source, nothing corroborates it

Let the top tier carry revenue, the cheap one count

Unit share and revenue share point in opposite directions, and only one of them pays you. The cheapest package routinely takes half the orders and a fifth of the money while the expensive one takes a quarter of orders and most of the money, so tracking copies sold hides where the business is. Do not assume nobody will take the expensive option either, because the buyers who genuinely need it move first.

The method

1. 01

   Offer several tiers and expect the cheapest one to carry most of the unit volume while the expensive tier carries revenue.

2. 02

   Watch share of revenue rather than share of units across price tiers: the top package can be a quarter of orders and most of the money.

3. 03

   Price high with three tiers if what you want is revenue: the top tier can bring in nearly as much as both lower tiers together.

4. 04

   Do not assume nobody will take the expensive option: the buyers who genuinely need it move first.

What it returned

• $195

  Marketing for Developers launched with a $195 complete package (18% of launch sales), an $85 premium package (6%), and the $39 book alone (75%).

• 163

  163 sales of The Book (48% of units) produced $4,897, or 16% of revenue; The Book + Videos took 88 sales and $7,072; The Complete Package took 89 sales, 26% of units, and $18,011, which is 60% of revenue

• $29

  $29 / $59 / $129 packages produced $22,680 in two and a half weeks: 181 base sales for $5,500, 115 middle for $7,000, and 81 top-tier for $11,200

• The first three purchases after the launch email went out were all the complete package, within four minutes of hitting send

Sources

• How I price productsJustin Jackson · justinjackson.ca · How I price products · undated
• How Nathan Barry and Sacha Greif Sold $39k Worth of eBooksNathan Barry · nathanbarry.com · Pricing Strategy · 2012-10-03
• Self-doubt and launch statsNathan Barry · nathanbarry.com · Sales stats · 2013-05-28