Pricing is oftentimes one of the most underrated, yet crucial, features of any great product page.
How do you ensure that your price not only reflects the value of your product but also appeals to the consumer’s psyche?
Inspired by insights from Nick Kolenda’s “The psychology of pricing,” let’s deep-dive into my favorite three transformative tactics.
🎯 Visuals in pricing: more than meets the eye.
🎯 Framing: the art of contextual pricing.
🎯 Detailing costs: building trust through transparency.
With these tactics, you’ll not only set a price but craft a compelling pricing narrative.
Step 1 – The power of visuals
Why size matters
Believe it or not, the size of the font you use to display your prices can influence how customers perceive the value. A smaller font size can make a price seem less daunting. For instance, a price tag that reads “$100” in a large, bold font might appear more intimidating than the same price in a subdued, smaller font.
Example: Think of two online stores selling similar designer shoes. Store A displays the price “$250” in a massive, bold font, filling a significant portion of the screen. Store B showcases the same price, but in a smaller, elegant font, positioned neatly below the product image. To many consumers, Store B’s price might feel more approachable, even if it’s the same figure.
Step 2 – Framing the price
It’s all about perspective
Our brains are wired to understand value in relative terms. By presenting a price within a particular context, you can influence how “expensive” or “affordable” it seems.
Example: Imagine you’re browsing an online store for a quality wristwatch. One page displays a watch priced at “$500.” On another page, a similar watch is priced at “$500” but is placed next to a label reading “Crafted from premium materials used in $5000 luxury watches.” The latter not only seems more valuable but the price more justified because of the framing.
Step 3 – Break down the cost
Creating a transparent value proposition
In an age where consumers crave authenticity and transparency, breaking down the costs that go into your product can be a game-changer. By offering a detailed insight into where their money goes, you’re not just justifying the price but building a bond of trust.
Example: Consider two artisan coffee brands. Brand A sells a pack for “$20” with no further information. Brand B sells a similar pack for “$20” but provides a breakdown: “$8 for premium beans sourced from sustainable farms, $5 for eco-friendly packaging, $4 for local employment initiatives, and $3 for brand development.” With Brand B, customers don’t just buy coffee; they invest in a cause and understand the value behind each dollar.
In conclusion, pricing isn’t just about numbers. It’s a blend of art and psychology, tailored to resonate with the consumer’s mind and heart. By employing these tactics, your eCommerce venture can stand out, not just for the products you offer but the stories your prices tell.
For an even deeper dive into the psychology of pricing, I recommend exploring Nick Kolenda’s comprehensive guide, “The Psychology of Pricing.”
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For feedback, queries, or a brainstorming session over your next pricing strategy, connect with me at andrea@grow.scalingdavids.com