On other occasions we have talked about the importance of certain elements linked to the price perception by potential customers. Hence, it is necessary to take into account multiple psychological factors when pricing. The presentation of the figures and the image of the price are only two of these factors that directly influence the effect caused on the consumer. Similar to these there are many other techniques that can be implemented to fully exploit the possibilities of selling each product.
The psychology of prices is one of the most studied areas by pricing experts and marketing strategists. In fact, it is part of one of the most innovative trends in this field: neuromarketing. When it comes to getting a sale, user perception is everything. Of course, the price is a fundamental part of this. Most of the resources in pricing psychology are focused on making the prices of your online store appear lower, thus motivating potential customers to make purchases. However, these same techniques can also be used to attract more users with other perspectives, such as the emergency call or benefits included in the price.
From this point we will make a list of 36 tricks and good practices that will allow you to use psychological pricing tactics in your ecommerce, grouped by the type of element that each action affects.
Psychological prices according to the figures
Modifying aspects of prices based on the figures they show is one of the classic practices of both physical and online sales.
1. Reduce the number of integers by one, or more, points. €5.00 or €4.99? This is one of the most used techniques (and the most abused) in the entire field of retail sales. Few businesses can be found that use exact figures to reflect their prices, especially when they are not too low. Fashion stores, technology, major sports brands, etc. Reducing the total price figure has achieved in all these sectors arouse the illusion that the price is even lower. It is the human brain has the ability to easily memorise the leading figure, which, in the face of the question asked, each potential customer will identify the price of our ecommerce as being cheaper when compared to the competition
2. Remove commas from complex figures. Simplifying the presentation of longer prices helps them to be perceived as cheaper. Eliminating the commas of the figures from the thousands will shorten the impact on the client. This is a technique that is used, especially in English speaking countries, where numbers with thousands can be read two by two. Extra TIP: This is an important change to take into account when keeping prices in-line in an international strategy.
3. Reinforce the cheap component of your prices with written prompts. Some eCommerce’s choose to accompany the price of their products with the advantages that it includes. In these cases, it is best to find a way to highlight the factor that reinforces the "cheap" component of each. For example, instead of highlighting the ‘premium’ quality of a product, pointing out that it has ‘minimum’ maintenance will reinforce the idea of the lowest price.
4. Value the inclusion of costs and expenses in the price. This characteristic is as personal and intrinsic to the market as its culture. This means that it is an aspect that needs the use of an a/b test to check which is the best option. In any case, we would be talking about two options: enter a lower unit price + cost per shipment, or reflect a total price with all expenses included. Giants like Amazon opt for the first option, but in other eCommerce’s where shipping is standard over the total purchase, it will be more appropriate to reflect the total cost once the sale is finalised.
5. Divide prices into instalments when financing is available. If the purchase of your products can be financed, or maybe is the default payment method, highlighting the cost of each instalment may be more attractive than the total cost, at least in the first instance. Of course, do not try to cover-up what the final price of the product will be, since the user will understand it as a bad practice and possibly an attempt to deceive. Make it clear that the price you are seeing is only that of one of the deadlines.
6. Stipulating a daily price for services. Along the same lines as point 5, the tactic of showing a price as a daily cost reduces the overall cost perception. With this new dimension, the user relativises the impact of the purchase on their daily economy, significantly reducing their sense of spending. This tactic is used, above all, when selling services, but can also be transferred to the cost of using an appliance or even the price per cup in coffee or tea, etc.
7. Avoid rounding up higher priced articles. Whole figures are more likely to be studied and compared with other market alternatives. The fact that your price is detailed helps users to feel like they are opting for a fair, measured to the millimetre, price and that you are offering the very best possible deal.