Business 2 Community posted this article with several tips for presenting pricing information to customers. These pricing strategies take into account the way a consumer’s “irrational” brain will interpret different presentations of pricing information. Some of these tips include:
- Display your pricing options in decreasing price order. Consumers will feel like the lowest price is a “bargain” after being exposed to the higher pricing options. This works even if the cheaper package gets you less value for your money.
- Add an “obviously bad” option. Customers are more likely to go for a more expensive package when the “bad deal” makes it appear like a value by comparison.
- Don’t make printed prices look like a price – remove dollar signs and .00 after the number to avoid triggering the negative emotional reaction that is linked to price.
This quote from the article stood out for us here at Profit2:
Fear of loss motivates us twice as much as the potential for gains.
We say almost the same thing when coaching distributors who are launching a new pricing optimization strategy: “Fear is Stronger than Greed“
Instead of persuading consumers to choose a more expensive pricing package, however, our work involves persuading sales people to ask for more margin on incidental items that aren’t price sensitive. To learn more about how we coach distributors to overcome fear, read about our methodology here, or contact us for a personal call from one of our distributor pricing experts.
