Psychological pricing is a strategy designed to directly influence consumers' behavior and purchase decision through emotions. One study found that psychological pricing entices customers to take a look at products, which motivates them to make a purchase.
So here are some tips that can help your psychological pricing strategy have positive results.
1. Avoid whole numbers
This is one of the most used techniques in the psychological pricing strategy; in fact, few companies use rounded numbers to set their prices. The use of digits provokes in the consumer a reduction of the normal price and, therefore, an illusion that he is paying less.
2. Differentiate the cost of shipping and handling
You can reflect the price separately, that is, show the cost of the product, which is usually less than what it will be worth with shipping. However, at some point during the purchase you must show the total cost before the sale is finalized. This strategy attracts more customers interested in your product and distances them from the competition.
3. Divide the total cost
Dividing the total price of your product or service into deferred installments can be more attractive to consumers. This strategy works when the cost of the products is very high: it is not the same to see that the price for an all-inclusive trip to the beach costs $12,500 or to know that you can cover the fee in 5 payments of $2,500 per month.
4. Establish fixed prices for periods
This strategy is very common for streaming services, such as Netflix, which has a fixed monthly cost for the use of its service. In this way the consumer gives less importance to the impact of paying for this service over a longer period and they do it for a fixed monthly fee.
In this case it is important to be clear with the specifications regarding subscriptions and cancellation of plans. A good offer in the price can be affected by a bad communication in the legal notice and, therefore, there will be a decrease in your sales.
5. Underline discounts
If you have made a discount on the original price of your product, it is important that you emphasize it so that the consumer can see it. When a customer realizes the savings he will be making by buying that product, he will understand the benefit of his purchase and will not hesitate to do so.
The order of the numbers is important, as well as the color and size of the font. That's why the final price should stand out from the original reference price. If you want consumers not to be confused and have a positive understanding of your message, position prices in the right place and in the right way.
6. Use percentages
The percentage is a resource that helps highlight promotions on products. This allows consumers to compare offers regardless of price value. Remember to specify what the percentage savings is.
Follow these psychological pricing tips with one guideline in mind: always go after the benefit of your customers. These tactics can help you boost your sales, but always keep the facts and features of your offer in plain sight (no surprises!).