BUSINESS NEWS & TRENDS - Pricing Strategies
5. Quantity Suggestive Pricing: Consumers are receptive to purchasing items in suggested
quantities. This is the strategy that is responsible for people eating too many Boston Pizza’s
sandwiches. The offer typically reads “10 for $10.” When you suggest how many you want your
customers to buy and give them an attractive price, they will
do what you tell them.
6. Large versus Small Losses: Offer your customers
multiple payments of less money. Think QVC (the shopping
TV channel) offering items for 4 easy payments of $29.99
which is more appealing than $119.96. This strategy plays
well with strategy #2 — multiple payments promote greater
satisfaction. So your customers will not only perceive a
lower price, but actually appreciate your offering more
because they will pay more frequently.
7. Stuffing the Bundle to Convey Value: But wait there’s
more! Consumers perceive more value when there is more stuff included in the bundle. You can even
call this a form of value-building. TV informercials are notorious for this strategy. They introduce a
main product and keep adding more and more items to the mix to build value — while
simultaneously “discounting” the retail price.
8. Everyone Loves a Bargain: Using banners announcing large discounts increases purchases.
There are two kinds of discount store shoppers: (i) those who are price sensitive because they can’t
afford to spend more, and (ii) those who are price sensitive because they are bargain seekers and
don’t WANT to pay more — they want to feel like they got a great deal. Big “Sale” and “Discount”
signs make both sets of shoppers feel good about their purchase. If your price compares favorably
in the marketplace and you’re offering a product or service for less — tell your customers so. Do not
be afraid to show them how much less your price is or how much more they will save.
Use any of these strategies, or a combination of several of these strategies and see how you can
uncover hidden profits in your business.
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