Pricing is a nightmare exercise that every experienced salesperson has to go through at one point in their life. It is about making sense of all the costs, variable or fixed, and the perceived value they should charge their client. Unfortunately, there is no universal formula for these as every product varies in the market. Here are some quick tips I have picked up in my career, and I hope they will help you too!
Tip 1: Abbreviate The Figures
Abbreviated numbers appear smaller $12K seems smaller than $12,000.00
Lesson: If you want a number to feel small (like the price of your services or products).
Abbreviate it!
Tip 2: List Higher Priced Items First
High prices anchor our expectations.
When listing items — like a restaurant menu — seeing higher priced items near the top of the list creates a price anchor and changes our perception of other items on the list.
Lesson: List higher priced items first to encourage people to spend more, especially with a la carte items. If it is a bundle package, see tip 5.
Tip 3: Use Charm Pricing
This tip works mostly for B2C businesses. Numbers that end in .99 seem cheaper. Psychologically speaking, $9.99 seems smaller than $10 Why? We automatically round down and see 9 instead of 10.
This is known as “charm pricing,” and it’s a staple practice for discount retailers.
Lesson: Use charm pricing to appear cheap.
Tip 4: Offer BOGO
We’ll buy more to get something for $0 if given a choice between “Buy One Get One Free” or “50% off when you buy 2”. The BOGO offer gives us a more compelling lesson: The free often beats the discount.
Tip 5: Bundle Pricing
Bundle pricing is often used to bundle various deliverables in a package that can be difficult to have its cost listed down individually. As a salesperson, you have the ultimate leverage to adjust the price point based on the client’s perceived value. Make sure to clearly communicate the value of the package to customers, highlighting the savings they will receive by purchasing the bundle.
Conclusion
Pricing can be tricky for novice B2C and B2B business owners. But it all boils down to implementing attractive and effective strategies to stand out from your competitors. Hopefully, the pricing strategies and tips I shared above can help you drive your sales to the highest level!
Disclaimer note:
The opinions expressed in this post are those of the author. They do not purport to reflect the opinions or views of ThinkLogic Media Group or any company and their associates.
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