Every item has a price and that is a critical part of a sales conversation. Often times, the price is what makes or breaks a potential sales deal. In this post, I will outline a few sections of an article I recently read on how different pricing strategies affect sales.
The first strategy has to do with price similarity. An experiment was run where people were given the choice of buying a pack of gum or keeping the money they were given. They had to choose between 2 different packs of gum at the same price. The study showed that only 46% of customers bought the gum when the two packs were the same price. In another round of testing, they priced the one pack slightly higher than the other pack. The study showed that 77% of people purchases the gum when there was a price difference. I think this is very relevant on the topic competition. If you are selling a product that is identical to another, there needs to be some sort of differentiating factor. That differentiating factor can often times be price.
The second strategy is on what number to end your price in. Oddly enough, ending a price in the number 9, will outperform a lower price. One of the most common uses of this trick is running a sale and reducing the price down to a number that ends in 9, for example: “Was $100, now just $79”.
The last strategy I am outlining is called price anchoring. A consumer tends to base their information off of the first thing that they see. So if you put a cheap watch next to a very expensive one, the buyer will keep going back to thinking about the watch that is cheaper when they are trying to make their decision to go with a potentially more expensive option.
BoweryJE22
As a buyer who often has a problem spending money, I feel this absolutely applies to myself. If the product itself has a major differentiating factor, it makes the act of spending more to be justified.
This was a great post! Price is very important to most people, including me! Sometimes price is the determining factor that makes or breaks a sale. I did not know about the number 9 rule, that is very interesting how prices ending in the number 9 are often more appealing. Overall, I enjoyed this post.
Hey Cayden, this was an awesome post! I had no idea about the number 9 rule, so that is something that I might try and implement in my new sales associate role post graduation. Price is definitely a very important aspect when selling, and I think you hit the nail on the head with this post.