When you’re setting prices for your products, services, and packages, how do you know what price points will appeal to potential customers and inspire them to buy? Pricing is a delicate balance of marketing and science. Here we are going to use both to increase your chances of making the sale.
This is quite possibly the oldest and most used trick in the book - because it works.
If a product is advertised as costing, say, $9.99, rather than $10, the brain is so quick at encoding numbers that it registers the smaller number so the price seems much less than only 1 cent cheaper.
Cancel the comma
Prices seem much smaller when you remove the comma. For example, write $12,495 as $12495.
Pinch the pennies
If your price is a round number then don't use the decimal. For example, write $10.00 as just $10 because it makes it look much cheaper.
Remove the currency symbol
Notice how a lot of restaurants don't use a currency symbol in their menus? That is because, without it, the item appears to cost less. So use 9 instead of $9.
Odds and evens
Customers are more likely to choose a price that ends in an odd number that is below an even number?!? Confused? For example $8.97.
Use numbers with fewer syllables
The more parts a word has when you repeat it to yourself or someone else the more expensive it seems. Try and use numbers like 2 rather than 7 or 12 rather than 11.
Use words that relate to or mean small
For example in your sales pitch use 'low fuel consumption' rather than 'high fuel efficiency'.
Offer three options
For varieties of items or packages/bundles offer three different price-pointed items. Most people will not choose the cheapest as they perceive it as inferior (or don't want to be judged as cheap) and are more likely to choose the middle or top tier price. Think about buying wine at a restaurant. The cheapest is not the most often chosen - the bottle at the next price up often is.
Closely tied to the above, offer three prices but make the upsell only negligibly more expensive. For example when purchasing a coffee the small may be $3, the medium $5.50 and the large $6. Most people will opt for the large because it is only $0.50 more and represents better value. The medium size is only there to encourage sales of the large.
Put your target item near a much more expensive item even if they aren't related. It will make your target item appear much cheaper. For example, a $30 t-shirt positioned beside a pair of $400 headphones will make the shirt compare favourably. The same works for menus. Add an overpriced item you know won't sell so that other menu items look cheaper.
Use the biggest possible way to discount
For example, a $200 shirt could be discounted by 10% or $20. They are both the same discount but the $20 figure looks like a larger amount and therefore gives the perception of a better discount.
Discount in stages
If you have a massive sale don't immediately end it and return to full pricing. Try and offer a lesser discount. The fear of missing the discounted price can be enough for people to purchase so they don't miss out again.
Break it down
Our brain automatically picks up on small increments even though logically we know the total price so where possible break prices down to instalments instead of a lump sum or periodic pricing like weekly or monthly instead of yearly. Better yet compare the small amount to something we already purchase in our daily lives like a cup of coffee.
Be careful with this one, especially with personal distancing rules but research has shown that a woman touching either gender (in a safe place like a shoulder) makes them feel more comfortable about spending money. An old salesperson's trick related to this is to match the body language of those you are trying to sell to in order to create rapport and trust which aids the sales process.
An original price that is different in colour and size to a discounted price will draw attention to the discrepancy and make the sale price seem more appealing.
Men see red
Research has found that men are more likely to purchase products when the prices are displayed in red. To them, red equals a discount whether there is one or not.
Offer options for paying
If you don't already, make it easy to pay without cash so debit or credit card for example. People are more reluctant to part with cash as it seems like the item is more expensive than if paid for in a cashless way.
Make the production of the product seem more expensive
Phrases like 'hand-crafted', 'organic', 'heritage' etc increase the perceived value of a product and can be much more effective than saying a simple 'looks great'.
Make it exclusive
Loyalty membership is a great way of providing exclusive discounts. People will want to belong to your club which also then adds another valuable lead to your contact list.
Sell the benefits not just the features
People respond to knowing how their life will improve or a pain point removed by using your product or service. So don't say your camera is a billion MP - focus on the precious memories that will be captured for a lifetime.
People pay more for nostalgia
Speaking of making memories, research has shown that people pay more for products that inspire a feeling of nostalgia - you value money less, and feel more willing to part with your money.
So use these hacks wisely to tip your prospects into paying customers!