There are many factors influencing the selling of a product. The most important ones are its quality and price. As long as the product does what it’s supposed to, as advertised, people will pay a higher price for it. However setting the right price for any product or service, a whole new science had to be created. The pricing science appeared in the 1980’s to help establish airline ticket prices.
Statistics, economic modeling, and other methods, are used to determine the right price. However for many the price is just a number that better reflects in the amount of sold products. Most likely some of the methods used in the beginning are now proven obsolete, thus new ways replaced them. Below are different strategies on how to price your product!
Studies revealed that a certain product sold more when it had a median price. The median number chosen was ending with a 9, while the other two prices end with a 4. The number 9 also gives the impression of a lower price, and this is why you see it everywhere in stores.
Various tests and observations indicate that most customers prefer the item in the middle. A premium beer in a regular size glass was preferred to the premium beer in a large glass and to a normal beer in a regular size glass. As expected, the preferred beer also had a median price.
REMOVE THE CURRENCY SYMBOL
Researchers removed the dollar symbol from a restaurant’s menu without changing the actual price of the dishes. When the dollar sign was missing, the patrons perceived the price as lower.
USE A DECOY SERVICE
You want your clients to return or to use all of your services. If you have a printer newspaper as well as an online one, offer the subscription for the printed one at the same price as the subscription for the printed and the web one together. Research proved the virtual service together with the real life one were preferred by the majority of customers.
RESIZE THE FONT USED FOR THE PRICES
Do you have the impression that large, big numbers used for a price, reflect a higher price than if it was written in a small font? If you answered ‘yes,’ then be happy to know you were not the only one feeling this way. If you want to increase your sales, write your price in a small font. Ideally, the discounted price uses a smaller font than the original. This way it is clear that the new price is lower, and helps the person save some money.
These are not all the methods used to determine how to price your product, but they are the most effective ones. Use them to skyrocket your sales’ volume. Here are the 2 final ones that we recommend you applying to your prices.
TAKE AWAY & ADVICE
So the take away from this whole blog post is to follow any of these strategies, and stick with it, as well as become a bad ass problem solver and you’ll be well on your way to generating more leads and even a nice six figure income from your business website or blog.
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