Common Pricing Practices Worth a Try
One sure way to promote your brand is through proper pricing. Your product’s price tag may either make or break your business. Marking up too high, for instance, may cause your brand to be unappealing to your customers. On the other hand, placing a price tag too low may seem like almost giving your product away for free.
One option is to sacrifice the quality of your products for cheaper price and greater market gain. But you don’t want to do that, given the fact that it may cost you your reputation. Fortunately, with some knowledge about how pricing affects consumer behavior, you can now determine the best price that will appeal to your customers while raking considerable profit at the same time.
Consider playing around with these interesting pricing practices from Pricemanager.com to get the best price for your merchandise:
Number 9 Could Be Very Powerful
Several studies have shown that putting a price tag ending with a 9 is way more appealing than making it $4. In a study conducted by the University of Chicago and MIT, a woman’s dress worth $39 had the biggest number of sales as compared to similar dresses worth $34 and $44.
It may not seem logical, but you should keep in mind that customers don’t rely on science when buying, they rely on their gut feelings.
Comparative Pricing Might Not Always Work
You may feel that it would be effective to explicitly compare your price with those of the competitors to let potential customers know that yours is cheaper, and that they should buy your product. However, a study says the contrary. In fact, they might be choosing your competitor’s product not because it is cheaper, but because something had triggered them not to buy yours.
Explicit comparison gives an impression that they are being tricked. For instance, they might think that the product’s cheapness compromises quality, so choosing the more expensive one would be wiser. As such, letting your customers do comparative pricing on their own would most probably do the trick.
Pricing Intelligence is the Key
Whatever your pricing strategy is, it is important to monitor minimum advertised price to ensure that your prices remain irresistibly appealing. Apart from an effective pricing scheme, an up-to-date intelligence on pricing with the help of experienced MAP policy monitoring firms could help you rise above the competition through well-researched price tags.
You have to strike a balance between keeping your business healthy and keeping your customers engaged with your products. With the help of these pricing strategies, backed with intelligence about current prices and competition, you can establish a strong foothold in the market through your irresistible price tags.