Using these pricing tricks to bring in more profits.
Experts agree that the way people spend their money is heavily influenced by pricing and marketing psychology. What are some of these pricing tricks and how can you use them to help you sell more? Here are some things you definitely need to know.
Useful Pricing Psychology Tricks for Business Owners
Provide multiple pricing tiers. Providing more than one pricing option allows you to capture a wider range of consumers. Some people will buy the lowest priced option since it definitely looks like a great bargain while some will gravitate toward the highest priced option since it confers a perception of exclusivity. Most people would choose the middle priced item since they do not want to look cheap by buying the lowest priced item but are also not willing to pay a hefty price for a particular product when there are more affordable alternatives available.
Drop the zeros. Most people have an aversion to zeros. They also think that they are getting a nice discount or a better deal by buying products with price tags ending in 9 (or any odd number). In fact, numerous studies indicate that prices ending in 9 boost sales by up to 24%. Consider this when setting a price for your products.
Make it easy to calculate. When marking down products on sale, use whole numbers to make it easier to calculate. This little trick also gives consumers the impression that they are getting a better deal. So, instead of saying “was $15, now $12.99”, say “was $15, now $13”.
Give away free stuff. By giving away something for free, you can attract more people into your brick-and-mortar store or business website, and entice them to buy other products.
Do away with the dollar sign. Studies indicate that including the dollar sign in your price tag or price list significantly reduces consumer spending. This is the reason most upscale restaurants omit the dollar sign on their menus. They want their customers to focus more on the food and not the price.
Create a false sense of urgency. Entice your customers to buy your products by providing an impression that you have extremely limited stocks or by promoting it as part of a limited time offer. Either of these strategies will push your customers to make a now-or-never decision.
Use small fonts. Rather than emphasizing the sale price of the product by using a larger and bolder typeface, consider using a smaller font instead. This creates an impression that they are getting a better deal.