Here at Harts, we always try to come up with something practical that you can use in business which we hope will help you to increase your turnover and profit.
Have you ever wondered why prices are shown in the way they are, well read on!
- Put your price in a small font – People will perceive prices to be smaller if they are in a smaller font. It’s because our brains blur the lines between a visual size and a numerical size. So, if you show your price in a smaller font, it gives the impression that it’s cheaper.
- “Anchor” your price – This means showing your price against a higher option. So show a competitors higher price for a similar product against yours to make yours look smaller. It also makes your price look more of a bargain. If you are comparing prices, show the higher price first and then show your price. People will latch on to the higher price first, so your price will then look cheaper.
- Take out the Comma’s and remove the currency symbol – Show your prices without commas and if possible, without pence. So show as 1000 and not £1,000.00. It does make your price seem cheaper. The currency symbol increases the pain of the spend, so if it can be removed, it lessens the pain. Or even better, show as 999 which again looks much cheaper than 1000!
- Add colour to your price – Men buy if the price is shown in red! According to research, men focus more on the price and if it is shown in red, they associate that with savings. Hence, they buy more when prices are shown in red. So, if you are selling to the male half of the population, it’s something to consider.
- Offer to pay in installments – Rather than show the full price of your product at say £1200 just show the price as being £100 per month. You are then using the tactic above, which is anchoring the monthly price against the annual one to make it look cheaper. It may not work with everyone, but it is just one of the reasons that we have seen a huge growth in subscription services. Think of your Amazon or Sky subscription and then think about what the annual fee would be. Would you still pay it?
These are just a few suggestions that you may want to consider when you next review your pricing strategy. None of them are expensive to implement and can prove very effective. There are plenty of others out there and we would be happy to run through these with you to see how Harts can help you to improve your sales and make more profit.
Hear Steven Glicher discussing Pricing Psychology in this short video, or take a look on our YouTube Channel
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