Pricing Insights Help Overcome Customer Irrationality
Inc.com has some “Pricing Rules You Need to Know” to help “make the most of customer weirdness” — i.e., irrationality about pricing. Their ABCs of Pricing states, “Buyers are irrational. Predictably so,” detailing “three of the frameworks — ‘anchors,’ ‘bumps,’ and ‘charms’ — they use to decide what they’ll pay for your product or services.”
Querying consumers on their perceived value of a product is unreliable because they “frequently don’t know what things are worth, and their stated preferences frequently don’t match their real-world actions. But simply taking your best guess and slapping a price tag on something usually means you’re leaving money on the table.”
Some of Inc.com’s recommendations:
- ConversionXL, which “recently rounded up a wealth of tips on pricing all grounded in science to help business owners decide what to charge for their products.”
- Use a decoy “that’s clearly inferior” as buyers “often decide on purchases by comparing them to other options.”
- Show buyers the deal by listing the original price on sale stickers.
Many more insights are shared in the full original post.
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