OnDemand WTP Pricing Research

How repositioning a product allows you to 8x its price | a smart bear

Pricing is often more about positioning and perceived value than it is about cost-analysis and unconvincing ROI calculators.

As a result, repositioning can allow you to charge many times more than you think. Here’s how.

You’ve created a marketing tool called DoubleDown that doubles the cost-efficiency of AdWords campaigns. You heard that right folks — as a marketer, you can generate the same impact, the same number of conversions, the same quality of sales leads, but with half your current ad-spend. Wonderful! Who doesn’t want higher ROI.

What can you charge for this tool? Clearly you can’t charge as much as the money the customer is saving on AdWords, otherwise the net result is no savings at all. Let’s say you can charge 25% of the savings and still find many willing customers.

Here’s what your sales pitch looks like to a specific customer who spends $40,000 per month on AdWords:

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How repositioning a product allows you to 8x its price – @ASmartBear – WP Engine.

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