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5 ways to make your prices look better! (12)

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Based on a local article hereby some tips for you goddamn webshop owners!

1) Show how much the product/service (would) cost per month, next too the total price. The periodical cost gives a cheaper perception to the product.

2) Be precize when it comes to huge prices, for example 350.291 does way better than 350.000. People experience exact numbers with "cheap", in this case too. And if not, at least you attract people with the "strange" numbers.

3)Show your prices at the right moment. Behaviour research showed people base a product or service on quality first, when price isn't shown directly. When price is shown directly, people judge the product/service on cost first.

A Tiffany diamond ring will be presented product first, with no price or at least presented very small!

4) Sort prices from HIGH to LOW. A test in a bar showed that presenting the most expensive beer at first, gained more revenue.
People take the first one as a reference, so everything below will be experienced as cheap. Also, with every comparison people do with the presented products lower, feel like a quality loss, so choosing the most expensive one feels best.

5) Get rid of the euro/dollar/pound sign. These signs refer mostly to spending/costs etc, which are negative associations in general.

Please show your results if applied!

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Great tips!

One more: if you possibly can, use "price anchoring". This is the technique of making things look cheaper by presenting more expensive alternatives first. It's the reason why every infoproduct on the planet is on permanent discount, and includes the "price" of all its extras.

Just try to mention a more expensive price before your product's price, in some way. Comparison to other products, cost savings, whatever.

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Interesting addition, since it's very contrary to point 4. If you show more expensive products, people likely to buy the cheapest/middle one? Probably CR wise you will be more effective, while the beer story aiming for more revenue in the shop, right?

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I think it's pretty much the same actually, or very similar.

In the beer example, you list the expensive brand first, which makes all the rest look cheaper and people won't be hesitant to buy them, even though they might still be pricey or over-priced. So people might not take the most expensive one, but they will take the 2nd one, which might be overpriced as hell Those who believe the most pricey variant is also the best one, will buy the most expensive beer which is now easy to spot on the list, so another gain for the shop.

Caurmens example works in a similar way, it just targets different audience, people looking for bargains and special deals. So first they show them a bundle of products at a crazy price, then all of a sudden, they are available in a special deal

One trick that always worked well for me regarding pricing, is using the 9's, so 19.90, 24.90, 2590.90, 5999 etc ... pretty much everyone rounds the numbers down

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Nice tips!

For more information on pricing-related behavioral psychology exploits - see the "Decoy Effect" and "Anchor Effect" in this post:

https://stmforum.com/forum/showthrea...=psychological



Amy

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Yep, exactly as Matuloo says - it's the same pricing psychology again.

Same reason why every SaaS product you'll ever see that was designed by someone competent has an "Enterprise" tier with ridonculous pricing (well, that and the fact that occasionally enterprise customers turn up and pay that without blinking).

Sometimes you'll get someone who wants the best possible quality and doesn't give a stuff about price - so they auto-buy the most expensive one - and a lot of the time you'll get people who are concerned about price, which is where price anchoring kicks in and makes them think "well, the middle tier's a solid balance between value and quality".

The "Anchor Effect" that cmdeal mentions in the thread Amy links is very similar.

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I wonder (since I am deeply in it) how sweeps can convert better/worse when a voucher could be won of €500 / €499 / 500 euro or 499 euro could be won?

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I would say, in this situation the rounded prices like 500 are better than 499, for example. A 9 at the ends make the user feel the number is lower than it actually is, so this is not something you'd want in case of prizes.

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Agree. This is why all the voucher offers we see, have amounts in nice whole/round numbers.

Along the same topic: When I was running sweeps very briefly way back when, I did some testing on the number of prizes available. I know how every advertising book talks about introducing scarcity in the ad copy, but apparently when it comes to prizes in a contest, it could be the opposite. Don't quote me here because I haven't done a ton of testing to prove this, but based on initial testing, I found that having a greater number of prizes available (i.e. "We're giving away 30 iphones" instead of "We only have 3 more iphones left to give away!") worked better. This makes sense to me, because the more prizes there are, the more hopeful I'd be that I could actually win one of them. Guess someone would need to do more testing to confirm whether my findings were an isolated case or skewed results from insufficient data, or whether they reflected an actual and general trend.

Speaking of trying to make prices look cheaper - here in Canada, before we did away with the penny, all the prices would be $x.99. $9.99 instead of $10.00. It did look and feel like you're spending less money. (Now that we don't have the penny anymore, stores have switched their pricing to $x.95...still the same idea.)


Amy

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I can confirm this with a real life experience, I've helped to organize a few raffles (like a draw/tombola on a ball) and the more prizes we offered, the more tickets we were able to sell. Funny fact was that it didn't have to be expensive prizes at all, the combo that worked the best was 1 grand prize (TV for example) and a ton of small almost useless prizes (we used ton of branded apparel that we were able to get for free). The grand prize was valuable enough to raise the interest and the ton of supportive prizes made people enter with the idea of winning at least something, should they not be lucky enough and win the grand prize.

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Thanks buddy! That just gave me an idea for our gamification plan....


Amy

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Great insight Vortex, I am going to split test with a pin submit advertiser on this; 5x100 or 250 euro vs a 500 euro voucher.

EDIT: more insights regarding pricing people?

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