How to Run Profitable Pricing Experiments?

Summary

In collaboration with our A/B testing partner Shoplift, we rolled out our first batch of pricing experiments this week.It triggered a realization that hit me like a ton of bricks: Running pricing experiments is fundamentally different from standard A/B testing.Pricing Experiment live in Shoplift DashboardI find it problematic that most content on this topic focuses entirely on the _mechanics_—how to change a digit on a screen—while ignoring the microeconomics at play. This superficial approach is dangerous. We need to dig deeper, because interpreting pricing data incorrectly isn't just a failed test; it’s a solvency risk.When we test a new PDP layout or a complex variant picker UX, the goal is usually friction reduction. We want to smooth the path to purchase or a micro conversion.The results are extremely limited:Variant B improved conversion rate (CVR) or Add-to-Cart (ATC) rate? Roll it out.Variant A won? Keep it.Results are inconclusive? Try choosing a bigger change to test.Pricing experiments are a different beast entirely. They are not about friction; they are about value perception and unit economics. A pricing test involves a high-stakes tradeoff between Volume (Conversion Rate) and Value (Margin).You might run a test where conversion rate drops by 10%, yet the experiment is a massive financial success because your net margin increased by 25%. Conversely, you might boost conversion by 20% with a price cut, only to realize you’ve destroyed your profitability.The Economics of Pricing Experiments: Intent vs. RealityTo run successful pricing experiments, you need to shift your mindset from "CRO" (Conversion Rate Optimization) to "Revenue Optimization."In a standard UX test, "more orders" equals "better." In a pricing experiment, more orders can actually mean "worse", if those orders are coming at a Customer Acquisition Cost (CAC) that your new lower margin can't support.The "Willingness to Pay" (WTP)At the core of every pricing strategy, and therefore a pricing e...