How to set a more efficient product price?


    How to set a more efficient product price?

  • 1 First number in price has the strongest effect

    A price set at 29.99 will have much more buyers than a price set at 30.00 - despite the difference being only 0.01. This is known as the anchoring effect, where the first number in the price determines further decisions the most.

  • 2 Rounded prices sell better when there's an emotional reason

    When buyers buy a birthday gift, for example, they are more willing to buy products with rounded prices. These prices are more easily processed in the mind and have a stronger impact when spoken out loud than prices that are not rounded.

  • 3 Prices that are spelled out faster are more popular

    When a buyer sees a price, he will read it aloud in his mind. Those prices with less letters are more popular among buyers.

  • 4 Fragmented prices are more popular

    Fragmenting the price will achieve a much better response from buyers. A traveling arrangement priced at 2,000 will not be as effective as one that says 1,200 hotel + 800 booked flight.

  • 5 Position and color of price play a role as well

    Research showed that positioning the price at the lower left bottom of the product's image is the most effective. If there's an old price and a new price, they work better if there's more spacing between them and one is of different color.

  • 6 Focus on the smaller values, not big ones

    Stating that the 'prices are low' will have a much better effect than a 'big sale'. This is because the subconscious mind usually doesn't associate 'big' with 'low'.

  • 7 Start bargaining with a higher and precise price

    Bargaining will yield much better results if the initial price was set to be higher and precise, not rounded. Putting the extra load on the mind will make the buying decision seem as a rational one.

  • 8 Any number in the perception field influences the decision

    For example, stating that something is priced at 49.99 is much less effective than having that same price accompanied by extra information such as this - 'proudly owned by 3,968 buyers' positioned very near the price tag.

  • 9 When selling a new product, don't put the old one on discount

    Research showed that launching a new product while putting the old one on a discount will make the buyers feel like the new one is too expensive. The right way to launch a new product is to slightly increase the price of the old one, which will make the new one an immediate best deal.

  • 10 Decoy pricing is effective

    Decoy pricing says that if you have two options, adding a third one, which is partially inferior to one option and completely inferior to the second option, will increase the sales of the second option substantially.

  • 11 Rule of 100

    It is more effective to say 25% discount then a $5 discount. This is the so called rule of 100, where buyers react more favorably to larger numbers in their favor regardless if the end amount is the same.