Pricing strategy is a key element of sales. How much? It can make or break a deal. It is used from branding (i.e., “prestige pricing”) to selling soon-to-be discontinued product lines (i.e., false urgency).
So how do you price your product/service? There’s cost pricing, which just covers your costs and expenses and maybe leaves a little margin. Then there’s prestige pricing, which sets the price very high so the customer can feel special for paying so much. There are many other strategies too.
For example, if you want to sell a $25,000 car, you sell it next to a $40,000 car. Suddenly, $25k doesn’t seem as expensive. This is an example of Anchoring. Anchoring is the human tendency to rely too heavily on the first piece of information (i.e., the “anchor”) offered when making a decision.
This great article from Blue Perks discussed many more pricing strategies you should and shouldn’t use.
Contact us today to nail down your pricing strategy!
