Price Point, Price Counterpoint

What’s a direct marketer to do when the CFO insists on raising prices to boost quarterly revenue?

Assault is frowned on in most workplaces. So the best course may be to read a recent white paper from Marketing Experiments, an online sales-research firm, on how to find the ideal price point.

The company provided several scenarios. One involved a Web-based reference book publisher. Marketing Experiments assumed that the firm’s goal was to generate as much top-line revenue as possible.

The publisher’s control offer was $69.95 for unlimited access to its Web site. As everything was delivered online, the publisher didn’t have to deal with incremental costs like printing and shipping expenses.

As part of the test, Marketing Experiments proposed several different fees