Our company sells an array of health products. Our normal conversation rate hovers constantly around the 2-10% range. Increased page session counts and referrals keep our growth fueled.
However one particular product has a 28% conversion rate. It's a 4oz tube of moisturizer for $12.99 that we think is modestly priced -- with a ~25% profit margin. However we also thought our shampoo was reasonably priced at $9.99 until an employee made a clerical error, entering the price as $19.99 and sales were still rolling in-- so we left it.
As with any pricing change, I'm afraid of pissing people off and don't know the best strategy to analyze or make a move. Could the high conversation rate be indicative that we should raise prices?
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