Scenario: Woman comes home from shopping carrying a bunch of packages. Husband says, “Oh, I see you’ve been shopping.” Wife says, “Don’t worry dear, it was $50 off.” Husband says to self, “$50 off of what? What number did the discount come off of? There’s a big difference between $50 off of $100, or $50 off of $1000..." And that’s the first example in Jon Manning’s video, “10 Ways You Can Better Present Your Pricing.” (Manning is Founder & Managing Director of Pricing Prophets pricing company, and pricing expert for Upstream Commerce). For the rest of Jon's list on pricing, take a look at the video:
Review of Jon Manning's 10 Ways To Better Present Your Pricing:
2. Do you really want half price? If so, what half of the product don’t you want? Give discounts where discounts are due (i.e. If you’re going to give half off of something, get something in return, like a larger sale).
4. You don’t have to mention prices at all. Just highlight that you have a competitive price.
5. Show just a few prices (commonly known as KVIs, or “Known Value Items”). If you can’t get away with showing no prices, show just a few. Show where you’re competitive without diluting price points of other items you can sell once the customer is in the store or viewing your pricing pages.
7. Do your prices reflect cultural sensitivities? Certain numbers and colors have greater appeal; i.e. represent greater luck (or unluck) for certain cultures.
8. If you have to ask the price, you probably can’t afford it.
10. For a sale, do you take money off of the higher price, or do you add money to a lower price? Although it’s the same in the end, fifty cents off of the higher price looks a lot better to the customer than adding fifty cents to a slightly lower price.
I'd like to hear some of your positions on pricing. Thanks. Gilon.