If you’re anything like me, you spend hours thinking about how your business can solve problems, give customers value, but also make a nice profit.
Those thoughts usually lead to pricing and when it comes to running a profitable business, pricing is everything.
Charge too little and you run the risk of not getting enough revenue. Charge too much, and potential customers will run for the hills.
It’s important to get it right, and it isn’t as simple as just charging what you feel is best.
It’s about getting into the mind of consumers to understand what they’re happy paying so you can effectively price your product to increase sales.
The thing about pricing, it’s comparative, never absolute. Nothing is ever cheap or expensive, without first having something to compare it to.
Without a thorough understanding of economic theory, it’s hard to price your products just right—at the sweet spot that encourages people to buy.
But whether you like it or not, our decisions are guided by a degree of cognitive biases.
The same goes for pricing. That’s why psychological economists put so much time into studying the spending habits of consumers.
So, with that in mind, here are 9 pricing strategies you can use today in your online marketing:
The 9 pricing strategies
- Charm vs. prestige pricing
- Comparison pricing anchor strategy
- Bundle extras
- Fragmented pricing
- Selling time over money
- Adding a sense of urgency to purchases
- Raising or lowering prices
- Reduce the pain of paying
I've researched all the pricing strategies above and found real-life examples of all the strategies in action. I've turned it all into an epic blog post.
Remember, people respond to pricing subconsciously. it evokes emotion. And it’s important to get it right if you want sales. Don’t sell a product or service—sell value.
Once you’re in the habit of selling value, your pricing will speak for itself.