“Change the way you look at things and the things you look at change.”
― Wayne W. Dyer
Pricing is one of the critical aspects of any business. Right after value proposition which sits firmly at the top.
You probably already know a lot about pricing.
For example, charm pricing: showing $9.99 instead of $10. People see it as a better deal because the dollar digit on the left will seem lower by comparison.
Or anchoring. Controlling what price the customer sees first so that they then compare everything to that price, which becomes an anchor.
Because this high-ticket item is the first thing the customer sees, they compare all prices and products to that item to determine value. This influences decision making.
Another one is unbundling. When you consider charging a small fee for shipping, versus including it in your retail prices. The idea is that, because the customer sees the lower cost of the product, they are more likely to buy even with the added shipping costs.
In addition to describing these tactics, the article shows the results of two real-life tests, with wireframes and all the results.
Test #1: Are dollar-off discounts or percentage-off discounts more motivating for online shoppers? (Is it better to show “$50 off” or “20% off”?)
Test #2: How does the visual presentation of sale prices affect online buyers’ perception?
Did you know? Consumers relate visual difference to numerical size. The online shopper looks at the larger original price and then compares the difference both visually and numerically against the sale price.
I have run many pricing tests. Some principles are more or less universal. Some depend on the product. Some depend on demographics. But each time pricing was one of the aspects of the business which, if done right, generated the best results.
How to use pricing psychology to motivate your shoppers: Two test results