The right product prices can help you maximize profits.
But how do you know if you’re pricing your products too high or low? And how do you find the perfect price point?
Price testing helps you to determine the ideal price for your products and services. It also shows how your customers respond to different prices, thereby providing insights into their buying behavior.
3 reasons why price testing is crucial for DTC brands
Over 77% of organizations run regular split tests to create high converting offers. And it makes sense why: price testing can have a major impact on your bottom line.
If you’re not testing your prices, you’re likely leaving money on the table. Here are 3 reasons to start price testing.
1. Helps identify the right price
Let’s say Warby Parker is selling a pair of glasses for $95. They’ve done their research and believe this is the right price point. But what if customers are willing to pay $115 for the same pair of glasses? They would be losing money by not pricing the glasses higher.
Price testing allows you to determine the right price for your product or service. By running tests, you can see how customers react to different prices and find the sweet spot that maximizes conversions and revenue.
2. Boosts AOV and bottom line
Average order value (AOV) is the average amount that customers spend during a single transaction. When you have a low AOV, it could be a sign that your prices aren’t aligned with your customers’ expectations. That’s where price testing helps.
If Warby Parker finds that customers are willing to pay $115 for their glasses, this price test could instantly increase their AOV by 20%. That’s a significant boost in revenue.
You can also start with small price increases and keep testing as you gradually raise the prices. Once you find the sweet spot for one product, begin testing similar price increases for other products to boost your overall store revenue.
3. Informs future product pricing
Going from $95 to $115 doesn’t just help with the current product, it also informs future product pricing.
Once Warby Parker determines that their customers will pay more, they can price future products higher without worrying about losing sales.
As you run regular price tests, you gather valuable data to know the pricing range for your store. This will make pricing future products easier and more profitable thus increasing your margins.
What is Dexter?
Dexter is a Shopify price testing app that makes it easy and fast to launch price tests and see statistically significant results. You can test simultaneously on multiple products and variants and get simplified analytics to make informed pricing decisions.
Take a look at how you can launch a price test in less than 60 seconds with Dexter:
Here are some of Dexter’s key features:
- Fast, 3-step setup to launch a pricing test
- Simplified analytics to see how each price performs, at a glance
- Compatible with remarketing and cart recovery so users see the same price throughout their journey
- Change price within the same product instead of creating a new test product
- 24×7 support over instant live chat
Whether you want to increase revenue, boost AOV, or optimize your pricing, Dexter’s price testing capabilities can help you reach your goals.
What makes Dexter different?
While there are a few price-testing apps on the Shopify app store, Dexter is unique. Here are the three features that make Dexter a better choice for busy DTC brand owners.
Simplified simultaneous testing
Dexter takes the complexity out of running multiple tests. This means you can launch various price tests simultaneously and see which price works best for each product.
This also allows you to perform price tests for your products quickly. Additionally, with Dexter, you can launch price tests without editing any code.
Why make data complex, when you can simplify it. That’s our philosophy at Dexter. We designed our analytics dashboard to be super simple and easy to understand with actionable insights.
You can see how each test performs at a glance and quickly identify which price results in higher revenue. Also, you can look into exactly how much money the price change helped you earn so you can make the right decision.
Compatible across marketing campaigns
Dexter creates a duplicate product variant for your price testing. As the URL remains the same, you can continue to direct your marketing campaigns to the same product page when price testing.
Dexter will automatically identify unique visitors and display different prices based on your traffic split. It also tags the visitors so they see the same price they were shown the first time even if you bring them back later through remarketing or cart recovery campaigns.
Dexter vs. competitors – How does Dexter compare to other price-testing apps?
Dexter is best for DTC brands that need speed, simplicity, and accurate results. Our competitors may offer similar services and you may be tempted to compare. So, we did the legwork for you. Here are some of the top names in the game and what makes Dexter different from them.
Dexter vs. Intelligems
Both Dexter and Intelligems offer true split testing with one major difference. Intelligems offers additional customization options.
It lets you control how the traffic is split, the source of the traffic to test, which group sees a specific price, and more. However, not all users need these many choices.
Dexter on the other hand is pretty straightforward.
It has an easy 3-step price test setup wizard that takes you through selecting your product, increasing or decreasing the price by a certain amount, and splitting the traffic.
As such, Dexter is a better choice for those who wish to run their test quickly and without any friction involved.
Dexter vs. Leaflet
Dexter is the simpler of the two options and is geared toward those who want to perform price tests effortlessly. The complexity is taken care of behind the scenes so you can run price tests and view the results, without spending time learning the product.
Leaflet may be overwhelming due to its cluttered UI design and bugs.
A user has mentioned loading issues and the temporary disappearance of stats as potential problems.
“Wanted this app to work but after two months on Pro plan, the UI still has loading issues, freezes, and the temporary disappearance of stats glitches. We were told by the support they fixed it but the problems are still present, we don’t have more time to invest in trying to use this at this price point.” — Anabolic Health
However, if the complexity of the UI and bugs don’t deter you, the choice between both products will yield similar results.
Dexter vs. Prisync
Dexter and Prisync can be complementary products as they serve different purposes. Prisync is a competitor pricing app while Dexter is a price testing app.
Dexter helps you to identify prices that your customers like through tests and data tracking. You can run multiple tests for products across your store to determine the best prices for each product and boost AOV and conversions.
Alternatively, if you prefer competitor pricing, choose Prisync. It helps you sync prices of product prices directly from a competing Shopify store. If the competitor raises the price of a product you sync with, Prisync will automatically set the same price on your store.
If you were using Neat AB, Dexter can be a great alternative to Neat AB. It offers real-time price AB testing instead of how Neat switches between the variants at fixed intervals skewing the test data.
Have you updated your product prices yet?
Price testing is essential for all DTC brands. It helps you find the best prices that your customers are willing to pay, so you can boost your AOV and conversions.
Dexter offers a quick and simple way to get started with price testing right away and begin collecting results. And if you need any help with price testing or with Dexter, reach out to us. Our support team would be happy to help you get the price tests going for your store.
If you want to get started with price testing, sign up with Dexter, and talk to one of our support specialists right away.