“Strange, but true!” — so can briefly describe the 7 principles of pricing. They are not always explained by logic, and sometimes even contradict it, but experiments have proven that they work. This is because the consumer behaviour is also not always rational.
1. Bait
In the experiment, people were offered two options of tours to Paris (A) and in Rome (In). The choice was difficult, and sales — not too large. And then the conditions have changed: customers could choose a place in Paris with Breakfast (A), in Rome with Breakfast (b) or to Paris without Breakfast (). The relevance of the vouchers of the first type has increased dramatically: people were able to compare and see that he has the advantage.
Tip: offer buyers a “product-bait”, which will encourage them to purchase the product that you really want to sell.
2. Play on the contrast
All around — and including — are perceived in context. How does this apply to trading? The realtor may initially lead buyers in a few ugly apartments at a high price and then show a good option. People are ready to buy it, even if the price is a little more than I said in the beginning, they will realize that to find a house — “a great success”.
Tip: turn a line of product with a high price, against which other products will look acceptable.
3. The magic numbers “9”
The University of Chicago and MIT conducted an experiment. They sent out three versions of catalogs with different prices. The same goods in the first sold for $34, and the second for $39, third — $44. What do you think of what the catalog sales were the best? That’s right, from second! Price with a nine on the end buyers seemed attractive, even lower.
Tip: let all prices end in 9.
4. The attractiveness of new products
Dictate the rules of the game can be only when you are perceived as an innovator. Do this for objective reasons, whatever. The main thing — not to “discover America”, and properly present themselves.
Tip: be original, be different from all previous and all who came before you.
5. The importance of context
Supply of the product, its packaging and the brand have a huge impact on the choice of the buyers. Economist Richard Thaler demonstrated this in their experiment. Imagine: you are at the beach on a beautiful summer day. The warm sun, and you get a bad craving. What you choose to buy beer in normal grocery store or to try a unique beer at the bar in an expensive hotel? Many participants were willing to pay and chose the second option.
Tip: carefully consider the supply of the goods. Often buyers are willing to choose a more expensive option, for which you have created an attractive image.
6. The high price sells
In our minds fixed communication “expensive means good”. So many are willing to pay for “superior quality” pair of shoes or a new expensive gadget half. Often brands build all communication with the consumer, with an emphasis on high-price and premium products.
Tip: never underestimate the price. You don’t want your product associated with consumer goods?
7. Free
For something “free” people are willing to pay. For example, a free shipping when you purchase above a certain amount in the online stores. If you do this “bite”, think about whether you needed all the goods that you “get” the required purchase price.
Tip: offer free shipping for orders above a certain amount.
According to the materials: rusability.ru
