Good Marketers Know That to Generate More Sales You Need to Offer Multiple Pricing Tiers or Several Pricing Options for The Customer to Choose From.
Your Pricing Strategy Doesn’t Have to Be an Entirely Emotional or By-The-Numbers Exercise. The Most Important Thing Is to Offer Quality Products/Services and Ensure That Customers Perceive That Doing Business with You Is on The Right Side of the “Risk Vs. Reward” Equation.
As consumers, we have a very hard time recognizing a business’s investment in expensive and specialized tools, or paying for a person’s knowledge or acquired skills. All they see is that they are paying a lot for something that didn't seem too difficult for a person or business to deliver.
The human desire for fairness can distort the perception of value and can have unexpected and often catastrophic outcomes, if not handled properly in your marketing.
Consumers are predictably irrational especially when it comes to customer satisfaction. In fact, when you pay has more to do with customer satisfaction than what you pay.
Consumers have been conditioned to focus more on what they are spending than on what they are buying. Consumers buy things today not because they need them, but because they are convinced that they can get it for a great price.
If you are facing stagnant or declining sales on one or more products and services, it may be because the way you are either packaging or pricing (or both) is not resonating with your prospects and customers.
One of the biggest obstacles that prevent a buyer from making a purchase decision is the fear that they will pay too much. From the seller's perspective, there is also the fear of pricing a product or service too high or low leaving money on the table.
In a perfect world, what a customer spends for something should be based on their opportunity costs. However, customers are irrational when it comes to money. By distorting a customer perception of their opportunity cost, a savvy business can make the customer spend more and be happy to do it.
Is it really better to price your product or service at $59.99 vs $60.00? I’m pretty obsessed with the idea of pricing and the psychology at play. In fact, there is a science that applies to pricing.