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12 pricing psychology tips to help you sell more stuff:
Before we dive in... 1. What you’re about to learn is powerful—use it for good (ie. to sell great stuff that actually helps people) 2. If you read this post all the way to the end, there’s a surprise for you 🎁 Ok. Let’s get into it...
BIG font = BIG price Our brains confuse the visual size of a number for numeric size If we see $25 in large font, our brain notices how BIG the font is and assumes the price is big Lesson: display prices using small fonts (not large ones) Like this ✅ Not this ❌
Dollar signs can trigger our “pain of paying” When we pay for things it’s literally painful Paying with cash is more painful than paying with plastic but still hurts Lesson: leaving $ signs off signage can persuade more people to buy as it reduces association with losing money
Exact numbers appear larger $1,302,859.53 seems much bigger than $1.3 M Lesson: If you want a number to feel BIG, streeeeeeeeeeetch it out with commas and decimals
Abbreviated numbers appear smaller $12K seems smaller than $12,000.00 Lesson: If you want a number to feel small (like the price of your services or products) abbreviate it
High prices anchor our expectations When listing items—like a wine list—seeing higher priced items near the top of the list creates a price anchor and changes our perception of other items on the list Lesson: list higher priced items first to encourage people to spend more
Numbers in red feel like a bargain Studies show that when prices are shown in red, we assume that they’re a great deal Red pricing works particularly well for men Lesson: show sale prices in red Wanna up the effect? Use smaller fonts for sale prices than the original price
Numbers that end in .99 seem cheaper Psychologically speaking, $9.99 seems smaller than $10 Why? We automatically round down and see 9 instead of 10 This is known as “charm pricing” and it’s a staple practice for discount retailers Lesson: Use charm pricing to appear cheap
Odd numbers seem like a better deal than even ones In our minds... numbers that end in 5, 7 or 9 appear smaller than ones that end in even number or 0 So $120 seems more expensive than $117 or $119 Lesson: end prices with an odd number to appear smaller (without looking cheap)
Round numbers = more expensive When brands don’t use charm pricing or odd number ends, we perceive those products to be more expensive This works well for luxury brands like Louis Vuitton or Prada that want to appear expensive Lesson: use round to sell luxury
Specific numbers anchor our expectations If we see “$70 and up” $70 becomes the anchor price Snickers grew sales by 38% simply by changing the anchor from ‘them’ to ‘18’ Lesson: Use specific numbers to encourage people to spend more
We’ll buy more to get something for $0 If given the choice between “Buy One Get One Free” or “50% off when you buy 2" the BOGO offer is more compelling Lesson: free often beats discounted
Comparison numbers help us decide As Einstein famously said, “It’s all relative” We seek comparisons to help us evaluate a product Without another item to use as comparison, we won’t know if we’re getting a “good” price Lesson: Choose your brand’s comparison set strategically
Did you find this thread helpful? It took me 4.5 hours to create If you’d share it (which will take about 0.3 seconds) I’d be so grateful 🙏 <a target="_blank" href="https://twitter.com/KateBour/status/1544647157579481091" color="blue">x.com/KateBour/statu…</a>
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