10 Ways You Can Better Present Your Pricing, by Pricing Expert Jon Manning

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: 

1. Remember the shopper described above… and 50 dollars off of what?

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).

3. When’s your next sale? Don’t be predictable (this conditions customers to only buy from you when you are “on 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.

6. You have to know when the customer wants a quality item and is willing to pay for it (as in quality cosmetics). For these sales, stick to your higher price point, and offer bonuses and value ads.

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.

9. Align your pricing strategy with your corporate strategy. “Never Knowingly Undersold,” tells the customer a lot about your positioning (without saying you are the cheapest in the market).

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.   

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Gilon Miller, CMO

About Author

Gilon is a seasoned marketing, sales and business development executive with over 15 years of experience in the software and Internet business. He is the Founder and CEO of GuruShots. Previously, Gilon was the CMO of Upstream Commerce, VP of Marketing at iMDsoft and Director of Global Marketing at SAP. He earned an MBA at the MIT Sloan School of Management and a BS in Electrical Engineering from Tufts University.
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