11 Powerful Pricing Psychology Tactics

11 Powerful Pricing Psychology Tactics: (use these ethically…)

— Marketing Max (@MarketingMax) March 8, 2023

At every point in your funnel, you can influence your buyer dramatically.
These tactics will go unnoticed by the customer, and that’s why they’re so powerful.
And the best part?
They aren’t aggressive or off-putting.
So let's go...

— Marketing Max (@MarketingMax) March 8, 2023

1: "Anchoring Effect"

Price your products higher initially to make subsequent prices appear more reasonable to customers.

Example: $50 for a hoodie followed by $30 for a T-shirt.

— Marketing Max (@MarketingMax) March 8, 2023

2: "Odd-Number Pricing"

People perceive prices ending in odd numbers as more affordable than those ending in even numbers.

Example: $19.99 or $9.99

— Marketing Max (@MarketingMax) March 8, 2023

3: "Decoy Effect"

Offer a third option that's slightly inferior but cheaper than your main product to make the main product seem more attractive.

Example: Main product $150, Inferior product $130

— Marketing Max (@MarketingMax) March 8, 2023

4: "Scarcity"

Create a sense of urgency by highlighting limited supply or time-sensitive deals, which motivates people to act quickly (use sparingly, and only if it makes sense)

Example: Limited time, only 200 flat screen TVs available

— Marketing Max (@MarketingMax) March 8, 2023

5: "Price Bundling"

Offer related products or services at a discounted price when purchased together, encouraging customers to spend more.

Example: Buy an iPad for $800 or buy an iPad and iPhone for $1100

— Marketing Max (@MarketingMax) March 8, 2023

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6: "Loss Aversion"

People are more likely to act to avoid losses than to achieve gains. Use phrases like "limited time offer" or "exclusive deal" to tap into this.

Example: We have an exclusive collection of NFTs launching next week.

— Marketing Max (@MarketingMax) March 8, 2023

7: "Framing Effect"

Present prices in different ways to influence how customers perceive them.

For example, "monthly subscription" vs. "annual subscription" can change how people view the cost.

— Marketing Max (@MarketingMax) March 8, 2023

8: "Perceived Value"

Focus on the value of your product or service rather than the price to make it more appealing to customers.

Example: This automation system will let you spend more time with your family!

— Marketing Max (@MarketingMax) March 8, 2023

9: "Premium Pricing"

Higher prices can make a product appear more luxurious and exclusive, attracting customers who want to feel special.

Example: Competition sells product X for $8.99, You sell product X for $15.99

— Marketing Max (@MarketingMax) March 8, 2023

10 "Payment Options"

Offering financing or installment plans can make your products more affordable to customers who may not have the funds to pay upfront.

Example: Monthly price is $10.99, Yearly price is $99.99

— Marketing Max (@MarketingMax) March 8, 2023

11 "The Goldilocks Effect"

People prefer choices that are not too few or too many, but just the right amount. Offer a moderate number of options to avoid overwhelming customers.

Example: Three different offers: low price, med price, high price

— Marketing Max (@MarketingMax) March 8, 2023

Summary:

All of these are powerful in their own ways and at their own times.

It’s your job to employ them at the right time and in the right way.

Experiment and use what sticks!

— Marketing Max (@MarketingMax) March 8, 2023

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— Marketing Max (@MarketingMax) March 8, 2023

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— Marketing Max (@MarketingMax) March 8, 2023