There are various types of pricing policies worth implementing, given by the experts in the field. Almost all of these strategies were able to endure the test of time firmly since they use some psychology elements in them.
It is seen that people generally associate the number nine with value and zero with quality. The point here is not about gaining some additional sales, but it is all about what the pricing communicates about your product.
Retail Technology. It is up to you to decide what you want to communicate about your product. Value or quality?After deciding you can price the product accordingly.
Refrain from offering a one-time payment, if you do so then the customers might perceive the product free after a while- thereby limiting satisfaction from the offering. The customers, who make payment frequently for a product / service, use it more often and perceive more satisfaction from it. Therefore, it is more useful to charge monthly rather than taking a one-time fee.
Strategies for Online Merchants. Higher price often connotes higher quality. The perfect example of this strategy is the luxury brands. Merely improving the overall look, packaging, delivery or promise of your product you can justify higher price and thereby support a prestige pricing strategy.
Customers use the highest priced model within a category as an anchor, particularly when they are unfamiliar with a product. For example- The Private Label brands in the supermarket. These are generally placed close to the branded product and the price is typically lower.
Consumers are generally willing to purchase items in suggested quantities. You need to suggest your customers that how many you want them to buy and give along an attractive price offer, and then they will do exactly what you tell them.
According to this strategy you must offer multiple payments of less money to your customers. This strategy and strategy #2 has the same goal- promoting greater satisfaction through multiple payments. Therefore, the customers will perceive the price lower and is more likely to appreciate your offering more.
If the bundle appears stuffed then the consumers would perceive the offering to be more cost-effective. This can be appropriately called a form of value-building. Companies keep adding more and more items to the main product and produce a mix of products to build value- at the same time they give the customers some discount as well.
Banners and hoardings screaming large discounts attract customers and thereby increase the sales. Generally there are two types of discount store shoppers: The ones who are price sensitive because they can’t spend more, and those who are rather bargain seekers and don’t WANT to pay more — they want to feel like they got a great deal.
Big “Sale” and “Discount” signs are used to make both the sets fell good about their purchase. If you are offering a product/service for less as compared to others- do tell this to your customers. Never be afraid to show them how much less your price is or how much more they will save.
You can use any of this strategies or a mix of several strategies to see how you can uncover hidden profits in your business.