Written by: Vickie Sullivan | January 13, 2015
Behavior Studies For Pricing Strategy
Like all things strategic, price setting is a blend of art and science. So this post about the psychology behind price strategy can come in handy.
Yes, many examples don’t apply to us. Ignore them. Pay attention to these findings:
- If you want to promote lower-priced items, compare them to the premium-priced options. Example: my consulting fees start at XXX (enter big bucks here), but you can get all my ideas and process here for XXX (enter bargain item here).
- Don’t nickel and dime the buyer. Example: for travel reimbursement, it might be easier to agree to a per diem instead of itemizing every purchase. No one wants to quibble.
- The bigger the price increase, the more attention buyers give it. (Also known as Weber’s Law). Example: colleague wants to double his speaking fee. My advice: add more follow-up work so it doesn’t look like an arbitrary (and huge) price jump. If you want to boost prices without blow-back, think about 10%.
And finally…look at the structure of this post. This grouping of a variety of studies under one theme makes the poster look smart and plugged in. Can we do that? Absolutely.
Other Resources You Might Like:
- Are You Treading Water?
- When The Price Isn’t Right: Responding To Bargain Shoppers
- Talking To Strangers