Probability Pricing

“What Priceline did for the travel industry, Probability Pricing is doing for the e-commerce industry – completely reinventing pricing.”

• Scott Case, Co-Founder, Priceline

What is Probability Pricing?

Probability Pricing began with a simple idea. What if stores could charge different prices to different customers based on what they were willing to pay?

For those customers willing to pay more, the store would make a little more margin. If a customer wanted to pay less, the abiding store would be less likely to end up with an abandoned cart.

Time is Money

Probability Pricing uses a customer's own time playing the game to identify his or her unique optimum price point -- the highest possible price they will pay for your product. In essence, we give you a crystal ball into each customer's price sensitivities and allow you to charge different prices to different people.

• With Probability Pricing, you can provide deeper discounts to customers who are more price sensitive, thereby decreasing abandonment and improving conversions.
• At the same time, you can provide lower discounts to customers who are not as price sensitive, which increases your margins.

A Game Changer for E-commerce Stores

Game mechanics makes Probability Pricing highly addictive and fun. After 5 plays, your customers are prompted to provide their email. In addition to boosting margins and conversions, you now have an amazing lead generation tool that collects emails in an exciting new way.

How does it work?

• Kate finds the item she wants in your store, but decides the price is too high…
• Instead leaving to purchase it elsewhere, she sees a little button called “Get Discount.”
• After proving she’s not a bot, a window pops up with a slot machine. She clicks it, receives a variable discount, but thinks it’s too low.
• She plays again.
• After 5 plays, she’s asked for her email address, which she provides in order to keep playing.
• After 10 minutes, Kate gets the discount she wants and makes the purchase!
• Now Mary comes along. She is very price sensitive and plays for 30 minutes before making a purchase. Her discount is higher than Kate's because she played longer.
• Finally, Jennifer, who is not price sensitive, rolls in on her diamond encrusted iPhone, doesn’t play at all, and pays full price.
• Kate, Mary, & Jennifer all have different price sensitivities, all were offered different prices, and all were converted at the optimal price point. Boom!

We're here to help

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