- Business and Employment
"Buy 1 Get 1 Free" - The Effective Psychological Pricing Trick
In this huge society, there are thousands if not, uncountable amount of supermarkets and small convenience stores in existence, trading products every day, yet, how are they supposed to earn a somewhat nice amount of cash with such giant rivalries around them?
Obviously, human beings are able to constantly generate new working marketing strategies, several go out-dated within months but few still apply as impressive even to date, introducing the Buy One Get One Free pricing strategy.
You must be joking if you have never seen the "Buy One Get One Free" technique, it is effective all the time, why? Due to the fact that you receive something free, its value is oftentimes looked as a huge deal.
The strategy is impressive simply because we all like free products, we don't like paying for things, if something free has been offered right in front of us, why not take it for granted?
This is the reality of us and no one can pretend it does not exist. Even if you carefully take a glance at it in a mathematical way, it's pretty much only just a half-taken-off discount, but the psychological perception is way above that.
Yet, you really should take note that the "BOGOF" delusion does not work as strong in all cases, because if you intentionally send off another copy of your good, you're really saying:
No one is buying my products, I'll give you a discount and buy it for me please. (pretty much a bribe)
You wouldn't want to do that.
The obvious answer is that it will definitely lower your brand's credibility, you will turn socially disliked since you are trying to upsurge your sales, and most crucially of all, your product may actually not be that "good-quality".
To defend for a clean company reputation, it's about keeping your value up at a medium range, this is called image pricing, and your company will remain unhurt while your opposition rush selling their products.
Of course, using prestige pricing (also called image pricing) only runs successfully for high-end and luxury based products, not cereals. Meaning, the BOGOF trick works effective only at average goods that are not extremely pricey.
Due to the fact that a lot of people use this "Buy One Get One Free" tactic, people are beginning to realise they are actually getting tricked.
Since sometimes the "1" is usually priced higher than its original price to create the deal, so, a real effective way to prevent the customers from backing away is to take the strategy to a higher level like “Purchase 5 Now And Get 2 Free”.
Really, just simply be creative, play with math and by all means, always experiment and so you will know whether your target consumers like a certain pricing sneaky trick or if they ignore it.
Need Pricing Strategies?
Did you know that using psychology can help increase sales up to a whopping 45%? Learn how you can bundle multiple items together and raise your sales -- value bundling.
If you are indeed a business owner who sets prices...
Did you know that pricing is the biggest mistake most business owners make?
In fact, you guys are leaving loads of money on the table, thousands if not, millions of untapped pure profits.