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Mark Wickersham (UK):
When you go shopping do you ever really
take notice of the prices? Next time have a quick scan of the
receipt. How many of the prices of the things that you bought end in 9? Chances are, a vast majority.
Why?
Because 9 is a hugely powerful number
when it comes to pricing and price psychology. There have been numerous studies into its power but one of my favourites involves three experiments carried out by Anderson and Simester in their research paper “The Effects of $9 Price Endings on Retail Sales”. One of those experiments saw them
testing an item in a catalogue at three different price points to see how the price affected conversions. The results will surprise you.
How a mid-price option
proved the most popular
At $34 they sold 16 units
At $39 they sold 21 units
At $44 they told 17 units
Look again.
The cheapest did not sell the most.
The most expensive did not sell the least. In fact the price point that
converted best was the mid price point of $39.
It outsold the $34 price point
despite being more expensive. In fact it converted 24% higher despite
the higher price. So imagine if you put your prices up
from say 34 to 39 and you increase your sales by 24% as a result. Your total turnover goes up
much more and because
your costs hardly change the impact on bottom line profits could be double. That’s powerful.
But don’t overuse it
Of course it could be tempting to end
all your prices in a 9. But don’t. It could begin to look
overused. It could look techniquey. Instead understand the power of a range
of price endings – and their implications. Find out more about how to use the
power of 9 in this video. You can watch the video here.
The Power of Price Psychology.
In my training program I take you
through more than 25 different techniques that you can use to ensure your price seem fairer and get more people saying yes. Click here to find out more
https://www.wickersham.co.uk/a/1878/wWVxKzFL In case you missed this: (More of Mark!)
Better pricing = higher profits
If you have a service business, you can
earn much more from this series. Also, Mark runs a programme called
Price Consulting, and he teaches
accountants/bookkeepers how to help their customers with their pricing. Thank you for the positive response to
posts on this topic and the action taken. Please tell your friends!
Those links again:
Effective Pricing for Accountants (book)
Monthly Mentoring
The complete guide to menu pricing – NEW!
(video training programme) How to build a successful bookkeeping
business (book) How to build a successful bookkeeping
business (video training programme) The Value Pricing System
The Power of Price Psychology
Grab them NOW and claim the true income
that you earn!
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