price-testing-and-elasticity

name	price-testing-and-elasticity
description	Use when optimizing course price. Price testing = experiment to find optimal price point.

Price Testing and Elasticity

Test prices: A/B 2 prices, measure conversion + revenue. Find: lower price = more buyers but lower revenue; higher = fewer buyers but more revenue.

A/B price testing setup

1. Two prices: A (control) vs B (test, +20% or -20%)
2. Random visitors see one price
3. Measure: visitors, conversions, revenue per visitor
4. Compare: revenue/visitor at each price
5. Statistical significance (100+ conversions per arm)
6. Implement winner

Price elasticity examples

From historical course data:

• $99 → $149 (50% increase): 30% fewer buyers, +5% revenue (marginal)
• $99 → $199: 50% fewer buyers, -10% revenue (lower revenue)
• $99 → $79: 25% more buyers, -5% revenue (slight loss)
• $99 → $49: 80% more buyers, -10% revenue (lower revenue)

$99 was the sweet spot. Test 10-20% changes; find your sweet.

Optimal pricing factors

1. Audience income — premium for high-earners
2. Course depth — deeper = higher price
3. Outcome value — saves $$ = priced accordingly
4. Competitive landscape — vs alternatives
5. Brand authority — established brand = premium
6. Cohort vs self-paced — cohort 3-5× higher
7. Time horizon — quick win vs long transformation

Where this fits in the X3 empire

Price testing for CardPrepAI Academy.