When customers look at online prices, which of the following do you think they're most likely to buy at -- $197, $195, or $199? And when online customers see the following numbers -- $166, $197, or $122 -- which price do you think they will choose for their purchase? You might be surprised. The numbers you use in your prices matter a lot, according to “Pricing Psychologist” Graham Jones. (Especially in this world of competitive pricing, I might add). In this video, “Perfect Pricing,” Jones tells how to set the right prices for your online products and services -- and explains why these prices work.
“Pricing correctly is of real value to you,” says Jones. Here are some pricing insights from the video:
1. Use numbers that "sound" right. (e.g. one, six, and seven are good numbers with which to end your prices... Seven and six are two numbers much more likely to get you sales... people like the number seven because of the short vowel sounds).
2. Customers tend to round up even numbers. (Numbers like "8" will become "9", i.e. higher, in the customer's mind).
3. Customers tend to round down odd numbers. (Odd numbers, like "7" feel smaller than even numbers do, to the customer).
4. Consonants that make the number sound small are more desirable. (Consonants like x, s and f -- as in the numbers six, seven, and four -- have a soft sound).
5. Consonants associated with long vowel sounds suggest a stronger or bigger price. (e.g. Nine -- as in "99").
Jones says the key to Perfect Pricing is: "Charge the right amount”. That is to say, “charge the maximum price you can charge that will get the maximum number of people who are willing to pay it." Get the sounds of your numbers right and you’re going to make much more money on the Internet. (Here's how to reach Graham Jones for more information on competitive pricing).
What secrets do you have for your pricing? I'd love to hear them. Gilon