How Much Would You Pay For These?

[Vick]

I'm deciding on a price point for our sunglasses.

I would like to get some feedback on what people would pay for these> http://iwear8.com/v1/

Please be honest. Much Thanks!

 

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[PeteLife]

I vote $199 ... I wish you had that as an option.
Its a psychological pricing strategy to end with "99" or ".99"
From $169-$199, you still have the same customer base, so why not take advantage of a couple more dollars in your pocket.

Our brains are programmed to read from left to right so we associate a $2.99 product, as spending a $2, rather than the $3 which it actually is. At a higher price model, such as $199, your customer base is the type willing to spend in the $100's ($150+) for a particular product, but not greater than $200.

So other than the fact that the person willing to pay $189 for a product, will also pay $199 for the same product, you have the added benefit of listing so close to that $200 mark that you are considered a "high-end" product.

Think about that. Why not capture both audience: The type who want a premium product and willing to pay a premium price ... as well as the lower end of the market who want to spend a $100+, without dipping into the $200s (which they will anyways once you add tax and shipping.)

I think $199, is the best possible price for this. I wouldn't recommend going into the $200s for the first product (maybe for version 2.0 you can go for that). You will be killing a huge percentage of your customer base. You would be surprised the number of people who would buy a product at $199 but not $201 ... its all a psychological thing.

p.s ... your listed pricing options in the poll is a testament to this... 149, 169, 189, etc ... they all end in 9 to decieve the customer into thinking they are paying 140, 160, 180 respectively ... The mind is a funny thing :smx4:

 

[CommonCents]

Nice design and photography, but I didn't see your unique selling proposition. Why are these worth the price? superior optics to give what benefits? better vision/safety etc... flexible memory frames that wont break if you sit on em etc.... anti fog for cold weather outdoor sports..... what is your target customer? Millions of pairs are on rotating displays in gas stations, grocery stores etc..for 9.99-15.99, how are yours different?

I noticed oakley oil rig(have them) and gas cans are 80-150 FYI. Also people have many retail outlets to try them on before buying online. I suggest you really address mitigating the risk of buying from online to get people to order them to try them. think zappos or amazon ease of returns to reduce ordering resistance.

Think about getting celebs/sports figures to wear them. Good luck!

 

[Vick]

Nice design and photography, but I didn't see your unique selling proposition. Why are these worth the price? superior optics to give what benefits? better vision/safety etc... flexible memory frames that wont break if you sit on em etc.... anti fog for cold weather outdoor sports..... what is your target customer? Millions of pairs are on rotating displays in gas stations, grocery stores etc..for 9.99-15.99, how are yours different?

I noticed oakley oil rig(have them) and gas cans are 80-150 FYI. Also people have many retail outlets to try them on before buying online. I suggest you really address mitigating the risk of buying from online to get people to order them to try them. think zappos or amazon ease of returns to reduce ordering resistance.

Think about getting celebs/sports figures to wear them. Good luck!

Ya I'm aware of all that. The website was done quickly. And just temp until manufacturing is done in March. I'll add some info pages soon. But... What I've noticed about selling these(pre-orders), is a very small percentage of people actually ask those questions, very small percentage. Trust me. What I've noticed is people just want something that looks cool.

I'm not too worried about the online buying thing. I've already reserved over $10,000 worth at our special pre-order pricing of 119.99$

If they don't fit people right. They can return them. Easy peasy.

 

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[JAJT]

Re: Psychology,

The ending of 99 and 98 are certainly great tools to portray value.

On the other hand, whole numbers are strongly associated with premium and luxury goods. Look at high-end restaurants as an example - you see a lot of "25" and "50", and almost never see a decimal place (or dollar sign for that matter) on the menu.

An A/B test between a $199 and $200 price point would be interesting for your product.

 

[Bigguns50]

Love the way the colors change. The images look high quality and design. "Wow". That's what I think most people say when they see this.

I'm saying $199. PeterLife mentioned you can go higher priced with newer, "improved, special edition, etc" models. I agree.

I paid $240 for my current shades. Part of their Warranty is if you break them for whatever reason, you can buy another new pair for 50% off retail.....I did this. Part of the reason I bought them was because the sales person explained how the 7 layers of polarization was manufactured into the plastic lenses...not just sprayed on like most.

With a $200 pair of shades, I expect to see and feel the good quality of the product. I would also expect a nice hard shell case with a cleaning cloth.

people just want something that looks cool.

That's us Americans all right.

 

[PeteLife]

On the other hand, whole numbers are strongly associated with premium and luxury goods. Look at high-end restaurants as an example - you see a lot of "25" and "50", and almost never see a decimal place (or dollar sign for that matter) on the menu.

An A/B test between a $199 and $200 price point would be interesting for your product.

I agree... an A/B testing would be interesting ...
You are 100% correct about whole numbers being associated with premium and luxury brands. But that generally applies to product that are already branded; Products that people are searching for directly; Product that has a following. Starting out, with no brand and following this luxury pricing style would be an instant killer if he dont got the marketing funds to back him up ...

There’s a huge difference between $199.99 and $200. Studies show that this $.01 difference increases conversion rates by approximately 30%. Thats a big pot of gold to be leaving on the table if he jump into the whole dollar value luxury pricing system without a brand or the big money for marketing. The companies who list at premium prices don't need that extra 30% to put food on their table but you might.

 

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[nevergiveup]

$219.99 all day every day!

 

[MJ DeMarco]

On the other hand, whole numbers are strongly associated with premium and luxury goods. Look at high-end restaurants as an example - you see a lot of "25" and "50", and almost never see a decimal place (or dollar sign for that matter) on the menu.

Great point.

There’s a huge difference between $199.99 and $200. Studies show that this $.01 difference increases conversion rates by approximately 30%.

The .99 ending implies the consumer is being cost conscious. If you are going for a luxury brand image, I'd stick with the whole price. If your trying to be a volume mid-brand, I'd say go with the .99 ending. When I order the Alaskan Halibut on the menu, it says $50 -- not 49.99.

The whole price implies a luxury brand.

As for conversion increases mentioned by Pete and the "studies", I don't doubt these numbers. However, was the study based on luxury goods? Or just some random consumer good? If we're talking about a carton of eggs, I'm sure the 2.99 eggs do better than the $3 ones.

 

[RHL]

I also want to toss out there that "what would you pay?" is a notoriously bad way to figure out what the market will support. Better to find an existing product you can legitimately compete with that's selling and start there.

 

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[Vick]

The whole price implies a luxury brand.

It's funny you guys are bringing this up.

My wife wanted me to do the 'whole numbers' thing, she doesn't like the idea of 'tricking' people with numbers, she's one for simplicity and honesty.

Originally, I did have them 'whole number' priced, but I changed it because of the Psych thing.

I do want to be a luxury brand.

So I think I'll go back to my 'whole numbers' strategy.

Maybe I should listen to the wife more. She's actually been right about a lot of stuff. Regardless of her knowledge of entrepreneurship.

 

[nevergiveup]

Just looked around and it looks like most of the premium brands are using whole prices. I'd keep the price above the $200 mark, the market will determine if you need to lower or raise the price once you start moving these.

 

[Vick]

I also want to toss out there that "what would you pay?" is a notoriously bad way to figure out what the market will support. Better to find an existing product you can legitimately compete with that's selling and start there.

legitimately compete with?

 

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[MJ DeMarco]

I do want to be a luxury brand.

When you do your branding with real life people, may I suggest modelling them "around" the brands you want to be associated with.

Your male model should be wearing the glasses in a Lamborghini, Mercedes, or a Ferrari. Now I'm not suggesting you shoot with those brands directly, but indirectly. I can spot a Lambo miles away, and I don't need to see the emblem, or the entire car. If you have a woman in the shot, I'd suggest the same (have her with a high-dollar bag, Gucci/Louis, etc.).

Use implied association to your advantage.

 

[PeteLife]

As for conversion increases mentioned by Pete and the "studies", I don't doubt these numbers. However, was the study based on luxury goods? Or just some random consumer good? If we're talking about a carton of eggs, I'm sure the 2.99 eggs do better than the $3 ones.

It was not primarily focused on luxury brand, just products in general. They even did one of their testing on housing, $300k vs $299k etc, and it still produced the same results. (is housing considered a luxury?) I spent a good amount of time about 2 years ago doing these research for a project. the numbers were crazy. Definitely opened my eyes to a whole bunch of "tips and tricks" that play a role in pricing psychology.

I am not against going after the luxury edge of whole pricing, but i highly doubt the OP want to take the potential sales lost of going that route. Gotta remember that th OP was a guy who had no intention to even sell at these luxury pricing. He even think his original $120 pricing was too high before we (the forum) tried to tell him it should be more. And even in his current posts you can tell he is still hesitant to raise the price by much. (OP correct me if Im wrong lol) I wanna see Vick succeed like we all do, but thats a huge hit on conversions for a "one-man" company being built on a budget. Like i said, certain companies (big ones) are willing to take that lost, but not worth it for the little guy sometimes.

p.s. My suggestion is $199 ...not $199.99

 

[LibertyForMe]

Use implied association to your advantage.

This is why I think you would KILL it if you got a few jewelry stores to put your sunglasses in the display next to the watches.

What other brands and items do people want to be associated with besides high-end cars and luxury clothes/jewelry?

Maybe location based associations; like a popular and fancy ski resort or a prestigious golf course?

 

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[brycer9]

I found from personal testing that 189.99 is a great price point for conversions

 

[RHL]

legitimately compete with?

Right. If your competitor's product cures cancer and makes you lose unwanted fat, you don't legitimately compete if your product gives a temporary sugar buzz. I mean, if your build quality, lens quality, design quality, etc. is similar to another brand, like D&G or Oakley, and you think that your distribution is good enough to mitigate the aggravation of not buying from a brick and mortar from a big name, where you can put them on your face, that's your target.

Look, as someone who bought his fair share of ultra-premium sunglasses in his sidewalking days, but who has no intention of ever getting near the retail of sunglasses as a business, this is my $0.02, and might not be worth even that:

The undiscovered country of online eyeware retail is the ability to anticipate fitment. As someone getting into this category, you must know that a vanishingly small percentage of people have perfectly symmetrical faces. Almost every person has one eyebrow slightly higher or differently curved than the other, and quite a few who look perfectly normal at a glance actually have ears or eyes that are slightly different shapes or sizes. Those minute differences show up when you put a machined, perfectly square set of glasses on, and having one eyebrow stick up slightly, or the glasses look a tiny bit crooked the whole time you wear them, makes you feel really stupid when you spent $450. You'll put those back on the shelf.

Design a system that integrates with webcams and somehow scales faces accurately to allow people to remotely see the fitment of their glasses including alignment, and you've got a breakout for your brand. Better yet, once you design it, ditch your own brand and license it to the big guys, then sit back while they pay you for their sales.

 

[RHL]

I can spot a Lambo miles away, and I don't need to see the emblem, or the entire car.

This. Subtlety saves you licensing fees and gets the same effect. Any gearhead can spot the door frame of a 458 or Gallardo or R8 V10 without seeing anything else.

 

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[MJ DeMarco]

Luxury marketing is a whole different ball game than normal consumer marketing. It's really a fascinating sub-genre in the marketing world.

The power of brand marketing is what makes people buy things 3,4, sometimes 500% more than a 'normal' version. They're buying an IMAGE, a STATEMENT, a FEELING.

Think: The $400,000 Lamborghini Aventador isn't loosing sleep because the Mustang GT is $350,000 cheaper. And yet, they're both CARS.

 

[FDJustin]

Design a system that integrates with webcams and somehow scales faces accurately to allow people to remotely see the fitment of their glasses including alignment, and you've got a breakout for your brand.

That kind of thing already exists actually. Ditto uses it for example.

 

[splok]

I'm deciding on a price point for our sunglasses.

I would like to get some feedback on what people would pay for these> http://iwear8.com/v1/

Please be honest. Much Thanks!

I think I have a bit of a mental sticking point at $200 for sunglasses. Bumping the price over that might be possible, but you'd have to really make me want them somehow. However, 150 or 200 isn't going to make a difference. However, I'd also never buy $200 sunglasses without being able to try them on first, for whatever that's worth.

As for making people want them, i still remember seeing the Oakley displays showing them getting shot with a 22 or shotgun pellets or something. I forget exactly, but it made for a great story. There aren't many ads I remember from 20+ years ago.

 

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[PeteLife]

Luxury marketing is a whole different ball game than normal consumer marketing. It's really a fascinating sub-genre in the marketing world.

The power of brand marketing is what makes people buy things 3,4, sometimes 500% more than a 'normal' version. They're buying an IMAGE, a STATEMENT, a FEELING.

Think: The $400,000 Lamborghini Aventador isn't loosing sleep because the Mustang GT is $350,000 cheaper. And yet, they're both CARS.

Great point.. Luxury marketing is indeed different. i don't think you can compare these as apples to apples though... Lamborghini has its brand... gucci and those other whole pricing products has their brand. When someone wants a luxury sunglasses or car, they go and search directly: "2012 Lamborghini Aventador" or " Gucci Sunglasses" ... No one is searching "8 sunglasses" ... unless they are looking to buy 8 different sunglasses. So in other words, these already established brands can do that since they are not taking the direct 30% hit since people aren't just buying them for their price but their name as well.

Another thing to keep in mind is that this pricing psychology doesn't generally work in reverse. Meaning that even though people will buy something at $199 but not $200 ... someone who is willing to buy a shades at $200 wont turn down a shades marked at $199.00. It just doesn't happen. As a matter of fact, they still look at it as a $200 glasses.

My reasoning for the $199 model is that if you can build a following of 30% more people, you are essentially putting your brand in 30% more mouth (word of mouth impact), 30% more facebook posts and tweets (social media impact), and on 30% more faces (people seeing it and inquiring about it...impact).

This all leads to people going to your website and seeing this luxury product being modeled in lambos and ferraris. Its an instant luxury and they want that. Why not build your brand and once you get a good following, simply add the $1 and make it a whole price unit?
People do see whole number as luxury, but they don't necessarily see an item that isn't whole number and automatically categorize it as unluxurious, so the $1 won't kill your image.

~My .02 cents
Whats your thoughts on that MJ... building a large audience first with the 99 strategy then switching to whole dollar pricing once you establish some credebility. Or do you think its best to just go whole dollar in the initiation stages?

 

[Rawr]

Luxury marketing is a whole different ball game than normal consumer marketing. It's really a fascinating sub-genre in the marketing world.

The power of brand marketing is what makes people buy things 3,4, sometimes 500% more than a 'normal' version. They're buying an IMAGE, a STATEMENT, a FEELING.

Think: The $400,000 Lamborghini Aventador isn't loosing sleep because the Mustang GT is $350,000 cheaper. And yet, they're both CARS.

Diamonds.

 

[Peterb]

Voted for 149,99.

Don't know if your waiting for this, but wanted to give my opinion on your website

One thing i im not seeing is a sales pitch where your tell my why they should buy your sunglasses and why i should do it today.
Think you need to get product specs and customer benefits up there on the main page + a couple of real life pics of people wearing them and giving testimonials.
Just my 2 cents

 

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[Vick]

Voted for 149,99.

Don't know if your waiting for this, but wanted to give my opinion on your website

One thing i im not seeing is a sales pitch where your tell my why they should buy your sunglasses and why i should do it today.
Think you need to get product specs and customer benefits up there on the main page + a couple of real life pics of people wearing them and giving testimonials.
Just my 2 cents

Product is being made.

Website is just temp.

 

[CommonCents]

http://www.swiftwick.com/hockey-socks-15-ctg.htm

a great case study on bringing innovation to a product.

 

[mzee99]

In my opinion, 169$ should be the pre-order price and then bump it up to 229.99 for final price. 119$ for a pair of sunglasses that look that good is very cheap. It'll definitely sell, but if you're looking to be a luxury brand, 169.99$ for pre-order and 229.99$ looks better.

 

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