While there are plenty of practical reasons people buy things, the emotional component is the every constant “x” factor. That’s why your pricing strategy is critical to your success, as it sends subtle messages and psychology to reach potential customers.
Consider the time-tested price strategies, reviewed by Ivana Taylor at Small Business Trends, as you are creating your price points:
- The Nine and Zero Effect: People associate the number nine with value and zero with quality. That’s why it’s the 99 cent store, and not the $1 store. Think about what you want to communicate to your customers and price accordingly.
- Prestige Pricing: Higher prices connote higher quality. By simply improving the look, packaging and delivery of a product you can justify a higher price.
- Large Versus Small Losses: Taylor suggests offering your customers multiple payments at a lower rate, versus a higher fee. This also plays into another strategy, that multiple payments promote greater satisfaction because customers perceive a higher value.
- Stuffing the Bundle for Value: Consumers perceive more value when there is more included with their purchase. For instance, offer things like free cleanings and maintenance on the jewelry you sell.
Take The Tip:
Click to read more pricing tips at Small Business Trends.
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