In 2016 Envato Team introduced Author Driven Pricing on the Envato Market. Some of the authors were happy to see such kind of innovations and some of them got annoyed because of it. Anyway, there are no one left indifferent to ADP.
We’ve chosen some random items that had rapid increase in sales during discounts and compared numbers with their average sales without discounts for the same period of time.
All data is exclusevely provided by Stattie.
The most important thing about discounts is finding the perfect balance between the price of the item and the possible cost of support.
The definite underachiever in this is TheFox: it made even less revenue while discounts, but got more customers for the same period (63 sales for $3717 vs. 86 sales for $2494).
But even that wouldn’t compare with Fevr, that made twice more revenue but got almost 11 times more customers.
UPD: The totally different situation happened with ROSA. The item got same amount of sales during the week after the price was increased(9th of October - 15th of October) but more revenue than during the week before price was increased(2th of October - 8th of October). This can be defined as a great move and a good, considered use of ADP.
It’s notable, that every item from the selection got more increase in sales(customers that may request support), than in revenue(except ROSA). Here are other items that we’ve chosen:
907 - 5 times more sales and 1.5 times more revenue.
The7 - 2.7 times more sales and 1.8 times more revenue.
Bimber - 2.7 times more sales and 1.4 times more revenue.
Foundry - 2.5 times more sales and 1.3 times more revenue.
BeTheme HTML - 2.2 times more sales and 1.1 times more revenue.
Sahifa - 9.4 times more sales and 4.8 times more revenue.
That can mean two things: at first, if you as an author aren’t confident enough about quality of your items maybe there is no need to lower your prices in the pursuit for number of sales? Secondly, if your items are selling good enough for their usual price there may be absolutely no sense for discounts.
What do you think on ADP and discounts in general? Can you give some examples of positive effect of discounts?
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