- Business and Employment
Three Delusive Psychological Pricing Tricks That Work Ninja
Pricing can sometimes be a frustrating issue to business owners, in fact, pricing, as a part of the marketing mix, has been confirmed to be the biggest mistake most companies make, pricing is one important decision to be made.
If a product has been priced wrongly, the results could be devastating, not only will you be leaving loads of cash on the table, but you will even lose your brand's trust and credibility, these things cannot be risked!
Below are three sneaky pricing tricks that are test-proven and supported by psychology:
#1) $8 for 8
Sounds familiar? You might be able to see one of these promotion techniques in supermarkets, it's basically a smarty-pants form of advertising $1 for 1, so what's the trick here? Instead of saying $1 for 1, expand the ratio to something like $10 for 10 or $25 for 5.
Consumers often get a little confused with the maths here, and the psychology behind this causes them to think this is a great discount or a good deal of some sort.
In some cases, consumers believe they have to purchase 10 items to get the deal, so they end up buying more than you would expect.
Of course, this trick doesn't work in all scenarios such as selling high end products like perfumes or jewelery, it will backfire terribly.
#2) Dollar Sign Elimination
As the title says, you should eliminate the dollar sign, can you guess why?
You probably know it. The reason is to eliminate all signs of expenses away from customers, your goal is to make your customers focus more on the goods and products, rather than the money they have to spend.
It works simply because money is out of their attention, they are more attracted to what you provide or offer, in other words, customers first, money second.
There are restaurants in the world that in their menus, never use the dollar $ symbol, but actually three dots “...”, weird but effective, obviously, this trick is industry-specific, meaning you can't use it in all situations.
#3) Simple Math
You know the popular odd pricing strategy, right? Using $9.99 rather than rounding it up to a full $10, just this little tweak could improve sales up to 24%.
However, some companies just totally overdo it, they don't realize the fact that not everyone likes math.
By all means, simplify your prices, for example, if a price was $10 and you've decided to give it a little discount to boost up your sales, then reprice it with $8 as a whole number and not $7.98, why? Because it causes confusions to your customers.
Just imagine how annoying it would be for someone to look through their expenses on the receipt. Researches have shown that by making your numbers more calculation-friendly, people are more likely to purchase the particular product, it's called computation fluency.
Utilize the $8 for 8 trick
Remove the dollar sign in appropriate situations
Be math-friendly and simplify your prices
Bear in mind that these tactics, as I have said earlier, do not work in all industries, before you decide to use one, make sure you know your target audience and whether they would be comfortable with the changes or not.
Want Pricing Strategies?
Did you know that using psychology can help increase sales up to a whopping 45%? Learn more about the famous "$9.99" fractional pricing strategy.
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 potential profits untouched.