The Science of Pricing: Pricing Strategies to Increase Sales

$cience ofThe

Pricing

What's theWhat's the Best Price Best Price for Your Product?for Your Product?

The Right Price Will Make You Earn Money

The The WronWrongg Price Price Will Make Will Make You Lose MoneyYou Lose Money

But...

There's More!There's More!

There are Secret Pricing Strategies...

...that will ...that will Increase Your SalesIncrease Your Sales......

...and Your ...and Your EarninEarningg Per Sale Per Sale

3 Awesome

Pricing Strategies

Decoy Pricing

1

In a study, were offered 3 types of In a study, were offered 3 types of magazine subscription to 100 students: magazine subscription to 100 students: web ($59), print ($125), print+web ($125).web ($59), print ($125), print+web ($125).

No one was taking the print only version, so it was removed and the experiment repeated.

As a result less As a result less print+web subscription were sold.print+web subscription were sold.

Takeaway

Offer different options with similar (or almost equal) prices for two of them.

Of the two, one is a decoy, and the other is the more attractive choice you wish

for the consumer to make.

Anchoring

2

Researchers invited real experts and Researchers invited real experts and undergraduate students undergraduate students

to appraise a home for sale. to appraise a home for sale.

The seller listed his house at different prices and as a result both students and experts made different evaluations.

The higher the priced listed, the higher was the evaluation.

Takeaway

Put very expensive products near the productthat you want to sell.

Bracketing

3

Tests showed that between a premium beer ($2,50) and a bargain beer ($1,80) people preferred the premium beer.

Adding a third super bargain beer ($1,60)

people preferred the original bargain beer ($1,80).

Replacing the super bargain beer ($1,60) with a super premium beer ($3,40), people preferred the premium beer ($2,50).

Takeaway

Include three options, and put the one that you want people to buy in the middle.

Make the luxury option really expensive: some people will buy it,

no matter the price.

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7Studies[Infographic]

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