Tactical & Practical Overcome Tariffs By Price Testing
Apr 15, 2025
Discover effective strategies for price testing in the face of rising tariffs. Learn how to navigate potential profit losses due to increasing costs of goods. Gain insights into data-driven methods that help identify optimal price points to boost both revenue and profit margins. The discussion emphasizes the importance of adapting to economic challenges to thrive in the marketplace.
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IntelliGems Impact
- Nate shares his experience using IntelliGems for price testing, resulting in increased profit per session.
- He highlights the software's impact on their CRO strategy, leading to millions in incremental revenue.
Optimize for Profit per Visitor
- Don't base prices on target gross margin goals, as this optimizes for profit per unit sold.
- Optimize for profit per site visitor by letting data from price testing guide your pricing strategy.
Benchmarking Price Tests
- If COGS double, find the new price netting the same margin dollars, not percentage.
- Use this price as the benchmark for your first round of price tests.