Three Underrated Pricing Tricks That Work Mighty Magic

August 25, 2011 by  Filed under: Marketing 

Can you believe that pricing is actually the biggest mistake most business owners and companies make? It’s fine if you ask them, but in fact, they are earning just enough money to cover up their expenses, years after years, they never generate a good amount of fortune.

By utilizing psychology, which some companies gave it a shot, as you might have guessed, they began generating more money ever than before, some businesses even managed to boost their sales up to a whopping 45%!

Listed here are three psychological pricing little tricks that effectively work:

#1) Kick Off the Dollar Sign

It is actually wise to remove all dollar signs from your menus, posters, price tags…etc Why?

Because you want to remove all signs (or hints) of expenses away from customers, instead of letting them think of how much the costs are and how much they will need to spend to get it, drive their full attention towards the actual product.

Why does this work? Simply due to the fact that the two words “spending money” is our of their focus, the customers are more engaged into the products and not the prices of them.

As an alternative you could try using three dots “…” instead of the “$” symbol.

#2) Pricing Simplicity – Easy Maths

What do you think is the most popular and effective pricing strategy in the world? If you can’t think of one, I’ll tell you, it is fractional pricing, which is pricing items at $9.99 or similar instead of displaying a full whole number of $10.

Fractional pricing works because consumers often perceive a $9.99 price to be extremely lower than a full $10. It’s psychology, no one can deny this.

However, a major downside of using odd prices is the complication when calculating the maths, all those remaining pennies and you know… how annoying and frustrating it would be for people to do those maths in their head?

Tests suggest that by pricing in a more simple way like $9.99 instead of $9.87, people are more likely to purchase those particular products, this concept is called computation fluency.

#3) $10 for 10 Deal

Looks a little confusing, right? But if you carefully take a look at it in a mathematical way, it honestly is just another way of promoting a particular product as $1 for 1.

However, not all consumers look at these numbers in the math way, they tend to look at these catchy numbers in a psychological point of view that causes them to think this is a great discount of some kind.

Tests have shown that some people see things in a way that they believe in order to get this deal, they must purchase at least 10 of these items as requirements, in reality which isn’t the case, but to us, it’s more cold, hard cash!

Take note that these psychological pricing tactics do not work in all industries, for example, if you sell high-end products like perfumes or automobiles…etc Avoid using these tricks, the term for this avoidance is called prestige pricing, if you break this rule, your pricing efforts will horribly backfire.

About The Author:

Harrison warmly invites you to check out how you can utilize psychological pricing to increase sales up to a whopping 45% right now with little-known human psychological strategies. Learn more over at psychologicalpricing.net.

Article Source:
http://EzineArticles.com/?expert=Harrison_Li

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