So you want to know what converts better
$1,499 or
14.99 or in other words you want to know if a comma impacts the way people perceive your price well
Here's how selling works first you make an offer
then
Potential buyers look at the value and the price of your offer and they compare the two if the value is greater than the price
They buy the value is lower than the price they don't buy
simple
But there's more to it
Hey, I'm Derek Halpern
And you're watching planet Derek the place entrepreneurs come to get ahead in business and in life and today. We're talking about
Pricing my favorite topic if you're new here go ahead subscribe to this channel and by the end of this video
I have a sneaking suspicion you're gonna hit that notifications bell
So let's jump right in some people think it's worth it to buy ridiculous amounts of sparkling water with almost no flavor
Some people spent $400 on sneakers
But they won't spend $2 for softer toilet paper, nope well, how much is the water?
I'm gonna get warm through it. I paid $3 for a bottle of water
ridiculous the point is
value is in the eye of the beholder and
pricing isn't as simple as
Is it worth it, or is it not of course if you're selling anything?
It's your job to communicate the value of your product or service sometimes
It's about inherent value about what your product is physically worth other times
It's about the value that your customer derives for your product, and how it makes them feel
But this in fact is your first job
You want to make the perceived value bar as high as possible, and then you want to deliver on it?
Now there's a flipside
Price is about perception so instead of increasing the perceived value you can also lower the perceived value
Notice how I didn't say lower your price. I
said lower the perceived price nothing revolutionary here
I know I've talked about choosing a price to Optima conversions before but did you know that you can change the?
Perception of your price with a tweak so simple it only takes about two seconds the best part
You don't have to change your price. You just have to change how you present it
I'll explain in a study published in the Journal of consumer psychology
researchers tested different price formats specifically they tested
$1,499 against
1499 so the first format included a comma the second had no comma I know I said it differently to
Emphasize the difference here, but as you could see on the screen?
$14.99
Then the researchers asked people to say these prices out loud
And here's what happened when people read the price without the comma ninety-three percent of them said
$14.99 when they read the price with the comma
eighty-four percent of people said one thousand four hundred and ninety-nine dollars
Isn't that interesting how that works? What's happening is this with the comma people frame it as a
Thousand something price without the comma they think of the price in hundreds, and they say it differently
This is important because with the comma it takes more syllables to say the price and as researchers found this makes the price seem
higher
Plus the price with the comma looks bigger on paper or on the screen simply because it takes up more visual spaces
too
Now I know a bunch of stupid internet marketers will start putting some commas and some sense into
their numbers when they talk about how much money they're making
But ignore those people I hate those people too the way we see a price
Changes the way we think about a price which changes the way we say a price which changes
How we assess a price the good news is that the lesson here is straightforward?
Don't put a comma in your price and people will perceive the price to be lower
However, be careful. There's one caveat
Things might change if you're selling an offer in the six figures like real estate
Maybe even in the high four and five figures in these cases leaving out the comma is likely to be counterproductive
Why because now the price gets difficult to read?
There are just too many digits speaking of too many digits. Don't you hate when people give their phone number like this
With no dashes. No commas no spaces every time someone does that to me on my phone?
I'm ready
All right, that's site
You're selling a product in the 1,000 to 3,000 dollar range leaving out the comma can be a smart
Tweak finally one more thing about formatting your prices the same study that tested commas also tested prices
with and without decimals so for example
1049 9.00 verse 1499, but the results here are a little harder to interpret
Especially because there's a lot of evidence that price is ending in $0.99 prices could convert better however
Here's what I can tell you you totally shouldn't add decimals with no value like two zeros that just takes up more space
It makes the price look bigger than it needs to
Cool cool so remember kill the commas kill the decimals if you don't need them now
I know you may be tempted to start to split testing this stuff
But here's an you know even though I'm talking about this
I highly discourage it I even warn you about why I hate split testing in this video right here here here
I don't know where it is
We got to figure this out in the end a comma is not going to make or break your business
And that's why I really filmed this video
I wanted to get your attention with something as simple as what converts better
And I wanted to let you know that if you're worried about this you probably have bigger problems
To solve you don't need to worry about a comma or no comma or zeros or no zeros
Just put the price find the right people sell them a good product
that's how you build a
remarkable business if you like this video here's what I want me to do leave a comment and tell me about a time when you
Chase down something as silly as a comma or no comma in your pricing and realize it was a big waste of time
I want to hear every story
leave it in the comments below like this video if you agree subscribe to my channel and
Hit that notifications Bell. I'll see you tomorrow
You