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Pricing Psychology: 4 Popular Strategies in eCommerce

Have you ever had such a situation when leaving a offline store the thought creeps in your head that you were deceived and you just “blew up” your monthly budget? Frankly: there must have been! Experienced marketers are on the alert and most likely powerful psychological pricing strategies have worked out against you that made you spend more than planned! Such techniques have long been used in retail, they can also be successfully used in eCommerce. Further in the article, we will consider the 4 most popular pricing strategies that can psychologically affect the buyer and significantly increase the sales of your products. By the way, the psychology of pricing is a much broader concept than prices with the last figure of 9!

1. Offer expiration date

In retail stores you have probably come across ads like “only today, only one day will last a super-sale of products, 70% discounts!” The most interesting thing is that such days of “sharp drop in prices” are held regularly. Thus, an artificial shortage of products is created and offline stores often use this method. In electronic commerce, you can also effectively apply it. So, if buyers think that the time frame for the sale is limited, this speeds up the decision-making process and the seller will be sure that the transaction will take place today and not sometime later.

К тому же люди боятся упустить выгодное предложение и это создает ажиотаж вокруг покупок. Можно воспользоваться этой психологической стратегией для продажи любой категории товаров, и она действительно работает на практике.

There is another way to apply the restriction method. You can change the sales strategy (if it is relevant for your business): positioning the offer as an exclusive product for a certain circle of consumers and falling into this “narrow circle of lucky ones” is a great success. At the same time the value of your product in the eyes of customers increases significantly.

But before applying the restriction strategy you should understand all the risks so that such actions do not harm the reputation of your brand and bring profit rather than a budget damage.

2. The magic of the number 9 - a strategy tested by time

Most buyers and marketers are already fed up with prices that end in "9". And this is not surprising, because this method has been used in offline and eCommerce for many years. The question arises: is it relevant today? Surprisingly, this time-tested strategy still works with a bang. You should agree, the price difference between $ 5.99 and $ 6.00 is only 1 cent, but psychologically the buyer perceives the first amount as the smallest and more profitable. This is because we read the text from left to right, and the leftmost digit in the price is associated as the final amount of the product. In fact by forming a price with an extreme number of "9" you convince a potential buyer that this is a bargain.

3. The visual appearance of the price

The appearance of the price affects the customer’s perception of the value of the product. Once in an expensive restaurant pay attention to the prices on the menu. Most likely they will be typed in small print and without “00” at the end — for example not “21.00” but “21”.

Опять-таки, на это есть психологическое основание. Чтение «длинных» цифр отнимают у нас больше времени, поэтому подсознательно они кажутся нам выше, хотя с математической точки зрения эти суммы абсолютно одинаковы. Кроме того, такие цены кажутся более дорогими еще и потому, что мы, глядя на ценник, проговариваем ее в уме и это занимает больше времени, чем чтение простых чисел.

Поэтому, советуем сокращать цены до целого числа. Несмотря на свою простоту, эта стратегия реально работает… Почему бы Вам не применить его на практике?

4. Promotion: buy one product, get a second as a gift!

The psychological basis of this approach is elementary greed. When a buyer encounters such an offer his thinking generates benefits. The main emphasis is on the purchase of products at full cost to obtain a free "bun".

We advise you to be creative and diversify the already familiar version of the promo. Here are some examples you can take note of:

  •  buy product now and get 25% on your next purchase;
  •  buy one product and get your choice of any 3 bonuses in the amount of $ 50;
  •  buy one product and get a second as a gift;
  •  1 1=3: buy two products and get the third as a gift, etc.

Как видим, вариаций для акции – масса, при этом важно учитывать выгоду для бизнеса от подобных маркетинговых «фишек».

We strongly recommend you use discounts and promos correctly! Without a systematic approach and clearly measurable goals they can cause significant harm. If you often arrange big discounts and sales there is a risk that buyers will be fed up and demand more from you. They may get the impression that real prices are too high so you can take the time to close a deal and wait for an even greater drop in prices.

Чтобы максимально эффективно отработать метод предоставления скидок, советуем объяснять покупателям, почему Вы ее запускаете.

Here are some examples:

  •  seasonal sale;
  •  launching a new product on the market;
  •  sale of balances from a warehouse etc.

Также следует учитывать и то, что размер скидки может существенно повлиять на смену Вашей целевой аудитории, как следствие – на Вашу репутацию и уровень потенциальных доходов.

Важный момент! Не теряйте из поля зрения ценовые стратегии Ваших конкурентов и ситуацию на рынке в целом. В этом Вам поможет Z-PRICE – автоматическая платформа для мониторинга цен в интернете. Благодаря данному сервису, Вы будете владеть ценной и самой актуальной информацией, анализировать данные, не отвлекаясь на рутинный, многочасовой сбор данных.

Конечно, это далеко не все стратегии в психологии ценообразования. Для Вас мы исследовали и описали наиболее популярные, которые могут с успехом применять в eCommerce как вердоры, так и ритейлеры на разных категориях товаров. Советуем ориентироваться на Вашу целевую аудиторию и ее запросы, так Вы сможете определить лучшие методы для Вашего бизнеса.

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