Often our clients have new products or services that they are selling. In pricing them, it’s easy to just do what everyone else does. But there are a few strategies that can get you better sales. Here is a couple of them that you may not have thought about.
List your highest price first
While you probably think it’s best to avoid sticker shock, you can actually use it in your favor. Anchor the price of the most expensive offering you have by listing it first. Listing your options in this order makes subsequent offers seem like a bargain.
List your lowest price first
I just told you to list your highest price first, so why am suggesting now that you list your lowest price first instead? Well, if your prices are very close together, you can anchor the lowest price by showing it first. But this works best also if the other following prices offer significantly more value, which will make them look like a real steal.
Ending with nine
You see prices ending with nine all over the place. But does it actually sell better if you do that? The Journal of Qantitiave Marketing and Economics says that it does, and it does very well. Prices ending in nine are often able to outsell even lower prices for the same product!
The study they listed compared women’s clothing priced at $35 and $39 and found that when the price ended in nine, it outsold the other price by an average of 24%.
They also found that sales prices ending in five were able to sell more than the number nine. But, if the original price was slashed out and a sales price ending in nine was offered, then again, the nine sales price outsold the one ending in five by 20%.
Was $60, now only $45
Was $60, now only $49 (outsold the above 1 in 5 times!)
So, apparently, our pocketbooks love nines.
In conclusion
It’s so easy for us just to price our services and/or products the way we think everyone else is doing, but that’s not always the wisest move. There’s the herd, and then there’s the successful. Don’t hesitate to step out of the normal and see how a different pricing strategy might help you be more profitable!
Sources: Digital Psychology, Help Scout