Price is one of the most common objections your visitors may have. Only some firms want to compete on price. And no marketer wants their product to be thought of, first and foremost, as either “cheap” or “expensive.” Cost shouldn’t be a different deciding factor. Value is what we want to talk about. RoboMarkets strive to lead it in that direction with substantial benefits messaging, explicit explainer videos, and outstanding social proof.
When it’s time for the customers to hand over their credit card information, their minds invariably return to their initial concerns about cost and adequacy. So, what can we do about it? Take your time to decrease prices or give discounts if you’re confident your product is priced correctly. Try implementing a few price-positioning and anchoring tactics to attract more of your site’s most frugal visitors. R
First, a market analysis.
Thinking critically about one’s circumstances is the first step in creating indices in real-time-timeeal-timeeal- time. Let’s refer to this phase as “As Is.” We understood we had to take stock of the current pricing practices before developing a new strategy. During the review process, RoboMarkets convened the appropriate parties to address the following questions:
- How does the present pricing structure appear, and what are the benefits and drawbacks of this structure?
- What is the current market position? Should we consider ourselves an industry frontrunner or a potential threat?
- What is the present commercial focus of the company? Should we prioritize sales volume or total revenue?
RoboMarkets constructed a structure for the pricing strategy.
The experts then held internal solution discussions with all the necessary parties. The primary objective of such a meeting is to establish a shared perception of the current state of affairs, or “As-Is.” Many of my customers either skip this stage entirely or treat it as though it were already common knowledge. However, assuming everyone is familiar with the current pricing strategies is unreasonable. That’s why experts recommend clients review the As-Is study results and the current pricing approach.
Another objective of this problem-solving session was to write the framework mentioned above, which necessitated price expertise and an understanding of available alternatives. It also bore solutions from the sales and segment managers. They pooled all available resources to develop a plan that met the business goals and the needs of the entire target demographic.
To increase profits, RoboMarkets debuted a new, more expensive product.
Two great metaphors illustrate this point: “If you want to make a house look enormous, place a tent next to it,” and “If you want to make a house look little, put a skyscraper next to it.” That’s the contrast effect in action, and it may be quite helpful in setting prices. Place a similar but more costly product next to the one you’re trying to sell to make the one’s pricing look more reasonable.
Williams-Sonoma featured a $275 bread maker in their print catalog. Still, very few people were buying it, according to a now-classic study published in the Journal of Marketing Research and reproduced in the book Yes! 50 Scientifically Proven Ways to Be Persuasive. Sales of the $275 model nearly doubled when a comparable model retailing for $429 was introduced and displayed alongside it.
They put it to the test, and it passed with flying colors. If you’re in SaaS or information marketing, it’s not hard to come up with a more expensive offering; if you’re a store or reseller, it may simply be a matter of stocking lines or brands you’ve always thought were out of your customers’ price range. Although we successfully sold the more expensive new product, the initial intent was to increase sales of the cheaper original product by making it appear to be a better value.
RoboMarkets Broke Down the Cost into More Manageable Daily and Monthly Rates, which was just a wording tweak, not a real price increase or decrease. You may be most familiar with this tactic from the 1980s and 1990s, “sponsor a child” advertising, in which the tagline “For less than a dollar a day” was used repeatedly.
We were planning to contribute less than daily. A regular payment, perhaps once a year, was expected from you. However, the ad’s impact would not have been the same if it had said, “For just $29 a month,” as part with $29 is far more complex than leaving with $1. It’s a brilliant tactic, and companies in many fields have started using it successfully.
Breaking down the total cost into manageable chunks and comparing them to real-world alternatives
Instead of communicating the financial value of a large one-time monthly or annual fee, you “spend” that dollar on something concrete your audience will likely waste money on, as in the previous price-positioning method. Why? Because it’s tough to see $1.50, but a bad cup of coffee is easy to imagine.
Value Perception of The Product Has Been Boosted
Value prism is a tool used in advertising copywriting. The goal is to highlight (figuratively) all the hard work that went into making your goods. Get people to recognize the hidden worth in your goods, and the price will seem much more acceptable. Just write down everything that helped you build this product or provides this service its value.
Getting rid of the dollar sign ($) and physically shrunken digits
Cornell University published research showing that removing the dollar sign from menu prices prompted diners to spend more. Although this was a study of diners reading menus, the results are intriguing and warrant more investigation if you’re attempting to justify a hefty price tag.
As this article discusses, another study indicated that consumers respond positively to sale prices when they are presented in smaller typefaces. A huge price tag may give the impression that it costs “more.” Big things are significant, and small things are small. Larger prices should reflect the market value of the goods or services.
Conclusion
Taking a cue from the current pricing strategy could benefit your efforts. Making high-priced goods seem like bargains is a good strategy if you’re trying to move them. Online advertising and persuasive writing can help you do this.
