[text_block style=”style_1.png” align=”left” font_size=”19″ font_font=”Tahoma” font_style=”normal” font_color=”%231b1c1d” font_shadow=”none”]Here is the raw fact.
…I have seen a dead ad instantly pick up just because of a little tweak in the price.
As a matter of fact, if a campaign is doing very poorly and I have done EVERYTHING I mentioned in the Sneak in Marketing Training and it still doesn’t pick up…
…all I do is simply use the following ‘’Price Tricks’’ and it usually works to increase conversion.
Without much ado, let’s get right to it.
Price Trick #1: To Reduce the Size of a price in the mind of a customer, move the price down into a .99 tail.
I will explain.
When someone sees or hears a price tag, he usually has a perception of the size of that price in his head. For instance, if you say 2000 naira, it has a size in your head. The size of 2000 naira.
Stay with me. You will get it.
But, if you slash it down to 1,999, you do not see it as 2000 naira anymore. Rather, you see it as 1000 naira plus something on top.
Let me be graphical so you get it.
1999 vs 2000
2999 vs 3000
3999 vs 4000
When you look at these prices they feel different to the eyes, even though they are not really different.
Now, take a look at the next one:
149,999 vs 150,000 naira
Notice what just happened.
149,999 naira doesn’t exactly feel like 150,000 naira. Even though they are ALMOST the same.
This is a little mind trick that forces your customers to perceive your products as CHEAPER, when it actually isn’t.
Shoprite use this most times. And it’s pretty amazing. Maybe outside the mall they sell a box of detergent for 50 naira, the guys at the mall sell theirs for 4999
Forty Nine naira Ninety nine kobo.
You look at it, compare the prices in your head and then your mind tells you that the mall price is cheaper.
Usually this is done subconsciously and you do not think much about it.
Price Trick #2: Don’t Offer Free Shipping if The Product Feels Expensive Already.
This is particularly important if you sell physical products online. Usually what people do is to include shipping cost in the price of the product and then say shipping is free.
If your product feels expensive already, giving free shipping never works.
Let me explain. I am currently working with a client who wrote a book and wants to offer it at 4000 naira plus free shipping. A 100 page book. Already 4000 naira looks way too big, in people’s mind, for a book.
So already, it felt way too expensive.
In situations like this where customers already know the price of similar items, like shoes and bags, come out and tell them the price of shipping then you can add something on it and it won’t feel expensive.
So instead of saying the Book was 4,000 naira. I told him to do this
BOOK price; 2,500 naira + 1,500 shipping
When someone sees a price like this, they would go like : ‘’Okay the price of the book is 2,500 naira, Not bad’’.
You have made the book look less expensive, even though the real shipping cost could be 1000 naira and the extra 500 naira on the 1,500 is profit.
The book now doesn’t feel like 4000 naira anymore. Even though it’s basically the same thing you did when you included everything in the price of the Book and claimed you are giving free shipping.
So, when you are selling something online and people already have a sense of what the price is, you can separate the shipping and work on it like this.