More than anything else, pricing involves maximum usage of psychological techniques. It is all about the customer, making them first of all buy a product, and when they decide to buy, influencing them to buy more.
Here are three examples of some high potential pricing techniques:
- Analogy:
Position your product price against something that is commonly known.
Such as: for less the cost of a latte, like a Netflix monthly subscription.
When the customer learns that the new purchase is similar to something that they are already buying without a second thought, they are influenced to buy.
2. Creative Sizing:
For products that have a sizing dimension, you create an asymmetrical price differential between any two sizes.
e.g. instead of pricing Small at $4, Medium at $6 and Large at $8
you can price Medium at $7 and Large at $8.
This (almost) eliminates the Medium option and influences the buyer to go with Large.
Popcorns at movies use this technique and sell more large than other sizes.
This is explained well in this blog.
3. Bonus offer:
People just love free stuff. The term “bonus” indicates something that you are getting for free, in addition to a purchase.
Instead of saying “Buy A, B, and C for $x”, the technique suggests “Buy A for $x and as a bonus we will give you B and C for free”.
Same thing, differently stated.
Other way (usually seen on TV ads) is to say, if you order within the next 30 mins, we will ship the product for free. Or we will give you a second one for free, if you order within a specified time frame.
Pricing techniques work on psychology. They also involve creativity in writing and presenting to the customer, reader or your executive. This is a skill that can be sharpened with practice.
Accelevaite provides guides and courses help you write better and get noticed. This post shows examples on how you can position your product pricing and influence your customer purchase decision. Better writing is a sure way to find your next job, get customers to take action and generally have your ideas and thoughts recognized.