price-test-analysis-tool

8/7/2019 price-test-analysis-tool

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Price Testing Evaluation Worksheet

Business CostsCost of Goods Price Point 1 Price Point 2

Fixed costs ($/mo) $- $-

Variable cost ($/unit) $- $-

Cost of Sales

Advertising cost

Monthly fixed fees ($/mo) $- $-

Variable Cost ($/unit sold) $5.18 $8.60

Test Results

Price Testing Results Price Point 1 Price Point 2

Price Point $10.00 $12.50Total Clicks 8978 8978

Average CPC ($/click) $0.09 $0.09

Total Sales (Qty demanded) 156 94

Total Test Revenue $1,560.00 $1,175.00

Total Test Advertising Cost $808.02 $808.02

Conversion Rate 1.7% 1.0%

Nominal Gross Profit for Test Period $751.98 $366.98

Nominal Test ROI 93.1% 45.4%

Test period (days) 4 4

Estimate Monthly Impact

Computed Daily sales (Qty) 39 23.5

Computed Daily Revenue ($) $390.00 $293.75Computed monthly sales 1170 705

Computed monthly revenue $11,700.00 $8,812.50

Computed Monthly ProfitabilityRevenues $11,700.00 $8,812.50

Costs $6,060.15 $6,060.15

Net Profit (Revenue - Cost) $5,639.85 $2,752.35

ROI 93.1% 45.4%

2005 Digital Trust, Inc.

This tool is for estimation purposes only. MEC makes no warrantees or repreYou may distribute this tool freely provided you do not charge for it, and that you not remove

www.marketingexperiments.com

[email protected]

If you discover any inaccuracies or you have suggestions for enhancement, please send the
http://www.marketingexperiments.com/mailto:[email protected]:[email protected]://www.marketingexperiments.com/


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PPC Quick-calc

Avg CPC ($/click) $0.09

Avg Clicks/mo 8,978

Avg PPC Var Cost ($/mo) $808.02

Price Elasticity Quick-calc

Change in Price $2.50Change in Qty Demanded (62)

In-range Price Elasticity -1.59

entations about its accuracy or usefulnessor alter the MEC banner or copyright notice.

to us at [email protected].

Usage Notes:oYellow cells are for entering input data.o Green and Gray cells are computed values generatedby the evaluation tool.

o If you are interested mainly in evaluating the results ofa specific test and its nominal revenue and grossprofitability, then ignore the "Business Costs" section atthe top and go directly to the "Test Results" section.

o If you want to compute the estimated business impactof a price change on monthly profit and ROI, includingboth fixed and variable product and advertising costs,then fill in the Yellow cells in Both the "Test Results" andthe "Business Costs" section. Then refer to the"Computed Monthly Profitability" section at the bottom.


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Free Trial Profitability Calculator

Site Metrics

Unique Visitors a Month 80,000

Monthly Recurring cost of Supporting each Member $8.80

Monthly Subscription Price $17.95

Days free trial offered 14

Conversion without free trial 0.80%

Conversion with free trial 1.25%

Average Number of Monthly Renewals with free trial 5.7

Average Number of Monthly Renewals without free trial 4.3

Free Trial Profitability Comparison*These numbers are automatically generated

Without Free Trial

Monthly Subscriptions 640

Clicks per Subscription 125

$9.15

$39.35

$25,180.80

First Month ROI 104%

ROI of LTV 104%


This tool is for estimation purposes only. MEC makes no warrantees or representaYou may distribute this tool freely provided you do not charge for it, and that you not remove or alt

First month Profit/(Loss) per Subscriber

LTV (Life Time Value) of a Subscriber

Projected Monthly Profit (Subscriptions * LTV)


[email protected]

If you discover any inaccuracies or you have suggestions for enhancement, please send them to

2

1


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With Free Trial

1,000

80

$0.77

$43.78

$43,778.33

9%

87%

tions about its accuracy or usefulnesser the MEC banner or copyright notice.

s at [email protected].

Here is how to use this spreadsheet:

1. Enter your site/subscription specifics. These numbersshould come from your statistics program or internal stats.

3. Review the profitability comparison (They should begenerated automatically).


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Conversion Calculator

Monthly Advertising Budget $10,000 Enter any ValueAverage Cost Per Visit $0.75 Enter any Value

Number of Unique Visits Per Month 13,333

Conversion to Free Membership from Initial Visit 50% Enter any Value

Total Free Members 6,667

Conversion from Free to Paid 10% Enter any Value

Total Paid Members (Subscribers) 667

Monthly Subscription Amount $29.00 Enter any Value

Cost per Subscriber $15.00

Total Monthly Revenue $19,333

Return on Investment Calculator

Average Retention Period (Months) 3.00 Enter any Value

Lifetime Value of Subscriber $87.00

Cost Per Subscriber $15.00

Margin on Subscription Product 65% Enter any Value

Gross Profit Per Subscriber $56.55

Net Profit Per Subscriber $41.55


This tool is for estimation purposes only. MEC makes no warrantees or representations abYou may distribute this tool freely provided you do not charge for it, and that you not remove or alter the ME

[email protected]

If you discover any inaccuracies or you have suggestions for enhancement, please send them to us at supp


6/9

ut its accuracy or usefulnessbanner or copyright notice.

[email protected].


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Dmin 74

Price Test Results Dmax 156

P0 P1 P2 #points 10

Demand $10.00 $12.50 $14.95 1

Day 1 33 19 15 Demand 74

Day 2 30 21 18 D(p0-p1) 61.58Day 3 49 29 16 D(p1-p2) 30.92

Day 4 44 25 25 D(p0-p2) 87.22

Total Demand 156 94 74

Total Revenue $1,560.00 $1,175.00 $1,106.30

Elasticity (P0-P1) -1.59




This tool is for estimation purposes only. MEC makes no warrantees or representations aYou may distribute this tool freely provided you do not charge for it, and that you not remove or alter the M


[email protected]

If you discover any inaccuracies or you have suggestions for enhancement, please send them to us at su

74 83 9-60

-40

-20

0

20

40

60

80

100

De

Pr

ice


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Incr

9.11

2 3 4 5 6 7 8 9 10 b(Di) Slope

83 92 101 110 120 129 138 147 156

55.85 50.12 44.39 38.66 32.92 27.19 21.46 15.73 10 108.1290 -0.629022.53 14.14 5.74 -2.65 -11.04 -19.43 -27.83 -36.22 -44.61 99.09 -0.92

78.64 70.06 61.48 52.9 44.32 35.74 27.16 18.58 10 156.91 -0.94

bout its accuracy or usefulnessEC banner or copyright notice.

[email protected].

101 110 120 129 138 147 156

mand Curves for Price Test

D(p0-p1)

D(p1-p2)

D(p0-p2)

Demand


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dP dD

$2.50 -62$2.45 -20

$4.95 -82

Documents

price-test-analysis-tool