Two Services/Products Pricing Strategies

Share on facebook
Share on linkedin
Share on twitter

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 

Kama Wilson

Kama Wilson

Kama Wilson is a designer and web design strategist. She's also the one that manages Smitten. Her biggest obsession isn't in the managing though. It's in crafting transformations that allow people to fall in love with her clients' businesses.

Want to discuss? We're all ears.

Wishing people could fall in love with your business faster, easier and deeper?

We're obsessed with this kind of stuff. Pretty much it's all we think about. There's a possibility we might be available to help you.

About This Little Agency: Back in 2007, in a little town on the southern border of Washington State, Trevor and Kama Wilson braved the naysayers saying it was absurd to try to earn their full-time income together online. Despite criticism and even moving into a single car garage for awhile so they could pursue their dream, they worked unearthly hours, studied endlessly, made costly mistakes, and figured out how to make their entire income online. After successfully running 700 websites (and living entirely and well off the profits), they opened Smitten (formerly Peppermint) to use their inborn, honed obsessions for alluring design, captivating content and personable branding to help other business owners get more ❤ too. 

Connect with us.

© 2018 SMITTEN, LLC (formerly Peppermint)  All Rights Reserved