13 psychological pricing tips to help boost sales
You’ve likely figured out best practices for mobile marketing, design, and internal communication for your business. It seems like you have a pretty good system in place, but it gets a little tired. You find you and your team are stuck in the monotony of brainstorming, creating, and implementing content to drive sales.
No change will come from doing the same thing over and over again. So, what can you do to make a difference in your income statement?
The answer is psychology. Or, more specifically, price psychology.
It’s no secret that sometimes the human brain works in odd ways that allows us to make decisions more quickly. It stems from the beginnings of homo sapiens, when snap decisions were the key to survival. Our brain essentially provides shortcuts to help us come to a conclusion.
It is in this way that pricing psychology can drive sales. For example, using the words “small” or “low” with regard to the price of an item can have a larger effect than you think. Consumers will associate the actual cost with the words related to small magnitudes, automatically deducing that the item is cheaper than others.
To expand on this topic, Wikibuy put together the infographic below for more tips on how to drive sales by tapping into the human subconscious.
Psychological pricing hacks
Display pricing in small fonts
Consumers perceive prices to be smaller if they’re displayed in a smaller font size because the brain blurs visual size and numerical size.
Show premium option first
Consumers rely on the first information offered when making decisions. Placing expensive items next to less-expensive ones leads them to view the second as a bargain. This cognitive bias is known as “anchoring.”
Use bundle pricing
Sell as set of goods or services at a lower price than consumers would pay if they bought them separately. Bundle pricing convinces consumers they’re getting a higher-value purchase when they otherwise wouldn’t buy the additional items.
Remove the comma from prices
Consumers perceive prices with less syllables to be lower. Removing the comma changes the way consumers say the prices out loud.
Price in instalments
When you give consumers the option to pay in instalments they “anchor” their mind to the smaller price and see it as a deal. Consumers compare prices subconsciously, making them likely to compare the payment plan price to the full price.
Offer three items
Offer 3 items of varying prices with the one you want people to buy in the middle. This technique is known as “bracketing.”
Position low prices on the left
People conceptualize smaller numbers as belonging to toward the left, so positioning them there can trigger the idea that the price is lower. Consumers conceptualize numbers growing larger as they move from left to right, so the left is associate with the smaller figures.
Price depending on purchasing intent
Consumers are drawn to rounded numbers or exact prices depending on if the purchase is motivated by feeling (want) or rationality (need). Use rounded numbers for emotional purchases and non-rounded numbers for rational purchases.
Price from high to low
Sorting prices from descending rather than ascending order makes consumers more likely to choose the more expensive option. When priced from low to high, consumers see each new option as a loss in quality.
Add visual contrast
When looking at items on sale, customers interpret visual differences like font, size, and distance to mean greater numerical differences. Change the font, size and colour of the signage for a sale and place it slightly farther away from previous pricing.
Use words related to small magnitudes
Consumers gravitate towards words they associate with small size. When pricing, use words like “low” and “small.”
End prices in “$9”
Consumers perceive nine-ending prices, like those ending in “9” and “99,” to be smaller. It’s also referred to as “Charm Pricing.”
Remove dollar signs
Numbers-only products without currency symbols are perceived as less expensive. In a Cornell study, customers spent 8% more when the dollar sign was eliminated.