Setting a price for your products or services isn’t always as straightforward as it may seem. Because it’s such a major factor in customers’ choices, it’s something you may want to experiment with from time to time. While there’s a lot of guesswork and hit-or-miss attempts that can pay off big or fall completely flat, there are also some solid promotional pricing strategies that have proven effective for many business owners. Here are five of them.
End Your Price With a $9
Studies have shown that prices that end in nine are more attractive to customers. However, using that strategy on all items, all of the time, is not effective. For example, researchers found that that $9 price endings aren’t as effective when you promote them along with “sale” notifications.
Whether it’s buy-one-get-one-free or a gift with purchase, everyone likes to get something for nothing. Of course, your business isn’t giving away the whole house, as many of these offerings can result in higher sales.
You may want to reward loyal customers by offering them lower pricing on certain items at certain times of the year. You may also consider offering free rewards after they hit a certain level of spending or number of visits to encourage more.
Encourage larger purchases by offering discounts on select merchandise.The more they buy, the more they save, the more you sell. Win, win, win.
Offering various holiday discounts is an excellent way to bring customers to your business when they’re looking for gifts. Think beyond the big December holidays to gift-giving holidays year-round including Valentine’s Day, Mother’s Day, Father's Day and other seasonal events like end-of-the-school-year gifts for teachers. The easier and more affordable you make it for customers to check off the gifts on their lists, the more inclined they'll be to purchase from you.
With any of these pricing strategies, it’s important to monitor sales to see if they’re working for you. The good news is that if they’re not, you can always shift course, until (as Bob Barker says) the price is right.