How to Set Prices That Boost Sales Without Discounts and Promotions
Slashing prices in half isn’t always a solution to long-term profitability
You’ll probably never going to outcompete Amazon when it comes to monthly sales.
You’re just a business trying to stay afloat and make ends meet every month. But there’s something about the world’s biggest consumer platforms that you can apply to your business.
It isn’t how they strategize their branding. Nor how they expand their fulfillment center nationwide. It’s something subtle yet holds the power to take your business to the next level. No matter the size of your business.
Pricing is a marketing strategy
The price of your product or service is more than just numbers on a price tag. They are numbers with the power to influence buying behaviors. Savvy marketers use the ins and outs of pricing psychology to their advantage.
That’s why you see some marketing campaigns made millions. But some barely even make a profit. What separates these million-dollar campaigns from unprofitable ones is the mindset when setting prices for their offers.
Many marketers were misled into thinking that they are charging way less than they deserve. When in reality, their monetization model needs to be further optimized. I believe that’s what most marketers underestimate most — their monetization model.
The defining key to more revenue with low pricing
The old way of thinking about sales is to make more (if possible) upfront. That led to a surge of marketers increasing their prices despite selling products or services that don’t worth that much. Don’t get me wrong…what you sell might be worth that much, but not in the eyes of the customers.
In your customers’ eyes, they’ll only see the worth after they get what they want. This is key to your pricing strategy. So selling your offer at a high price upfront would only add friction into the buying process. The best way to make more money from one customer? A value ladder.
Value ladders tend to start with something small and easy to sell — like free offers — to build some initial trust and get the prospect interested in your brand. As they move their way up the ladder, you continue to make offers of increasing value and price until you finally get to the end — your “bullseye” offer. (VipeCloud)
What this does is it gets your customers’ feet at the door. It uses a front-end, low-priced offer to entice customers to buy from you. Once they see the value in your offers, they’ll then buy more from you if they choose to.
You’ll never need to offer promotions or discounts this way. The value ladder eases the customers’ way up to the main higher-priced offer. It’s a natural way up. What’s even better is you’ll get more front-end sales which increase the chances of more customers buying your higher-priced offers.
Pricing psychology to boost front-end sales
With that being said, getting people to buy your front-end offer is tough. In fact, the first sale is always hard to come by. That’s why you’ll need to make your pricing as enticing as possible to persuade and influence customers to buy.
Here’s some enticing pricing psychology at your disposal.
There's something about bundle offers that makes them so enticing. And that is the value of getting more while paying less. You need to know that customers associate paying with pain. So it pays to make buying as painless as possible.
Studies suggest that, if you put the thing you want to sell in comparison with more expensive or cheaper items, you’ll make more sales as a result. Consumers are comparative in nature. Use it to your marketing advantage.
Guarantees aren’t there to sell. Your USPs and offers do that. Guarantees are there to give customers the assurance they need in case things go sideways. Guarantees increase the likelihood of customers buying from you. It’s a conversion booster.
Ever seen offers that end with 9s at the end of the price tag? There’s a psychology to that. Apparently, $20 seems more expensive than $19.99 in people’s minds. People pay more attention to the first digit on the left. The lower, the better.
Buy one, get one free
A classic pricing strategy that still works like magic. Who doesn’t like a buy one, get one free offer? I mean, it’s a no-brainer. When this strategy is done right, your inventory might just run out in hours.
Study pricing like it is worth gold. Chances are, it could be worth much more than gold. Your pricing strategy could be the key difference between making 6-figures per year and making 6-figures consistently every month.
Your sales message is the fundamental key to marketing success. I'm writing to share everything I know about neuromarketing so you can apply what works to get more leads and sales. Follow me for more content on persuasion and marketing.