June 27th, 2009 by Bob Bly
Internet buyers LOVE discounts, yet most info marketers don’t use them nearly enough.
A case in point: on 4/9/09, we sent an e-mail to my list offering one of my e-books at the cover price of $79.
It generated 32 orders and $2,528 in revenues — not great, not bad.
Thursday of this week we sent the identical e-mail to the same list but added a P.S. offering the book at $49 — a $30 savings — if they ordered by midnight Sunday.
While orders are still coming in, we have already sold 155 copies at $49 each, generating $7,625 in revenues so far.
Does it bother me to let people have a $79 product for only $49?
Of course not. What’s important is not profit per sale, but profit per e-mail blast … which the discounting tactic will more than triple before the weekend is over.
P.S. Of course, discounting works with products where you have a large enough margin to sustain it — and in the case of e-books, the margin is close to 100%.
I wouldn’t do this with my own services, because discounting would lower my revenue per hour.
While my supply of e-books is limitless, time is not: you only have so many hours in the day to work, and when you work for less per hour, you are working harder to make less money.
Who wants that?
This entry was posted on Saturday, June 27th, 2009 at 7:17 am and is filed under Online Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.