Online Business Strategy – Secrets to Pricing a Product
There are different ways of pricing a product, others just base it on their cost then comparing it with their competition’s price, others just do the standard (cost x 3 = price) formula, while others… because of being oblivious about pricing a product just decides to pull a number out of the hat and base everything on feelings. If they feel that price is good enough then everything’s history!
Friends, I cannot stress to you just how dangerous this kind of thinking is to your business. For your business to remain competitive let alone survive, you should at least have an idea about how to price your product.
On this article, I’ll teach you some psychology about how pricing works. I’m not really going to tell you which method to use when pricing your product but if you ask me, I’d go with the cost x 3 formula.
I’ll be talking about the factors that increases the chances of your product from being purchased based on pricing.
Here are some of the secrets that you need to know about pricing.
1.) The Hideous $ sign
I’m guessing that you probably didn’t know but the “$” can reduce the chances of your products from being sold.
An experiment was made where a product was priced for the same amount but on the first product, it was priced as “$29” and the other one was priced as “29”. Amazingly, the product with the higher conversion is the one with “29” only.
2.) The Mysterious Number 9
Apparently, the number 9 has its way with getting your products sold. According to studies, products that are sold with number 9 at the end have a higher conversion compared to other numbers.
A study was made where they were selling identical products using different prices. The other one was sold at $20 while the other one was sold at $29.
You’d be amazed to find out that the one sold for $29 has higher sales.
These psychologies about pricing will help you increase you sales. Conversely, if you don’t use these techniques, you’d only be leaving a lot of money in the table.
Pricing does in-fact play a key role as far as your business’s success is concerned. Do not neglect these tips and the psychology behind them because if you do, it might lead to your business’s early demise.