4 pricing strategies you can implement now

Here are 4 of the 8 Pricing Strategies you can Implement Right Now:

• The Nine and Zero Effect. People associate the number nine with value and zero with quality. Look at the difference between fast food and a gourmet restaurant. A burger meal can sell for about $4.99 while a gourmet entree at the best place in town may go for $30. So the psychology of pricing isn’t so much about gaining additional sales because the price appears to be lower, it’s about what the price communicates about your offering. So which do you want to communicate? Value or Quality? Now you can price accordingly.
• Payments to Promote Satisfaction. Anyone who has ever paid for a gym membership and quit the second month has been part of this pricing strategy. If you offer a one-time payment, customers will perceive the item free after a while and not use it as often — thereby limiting satisfaction. Customers who pay more frequently for a product or service use it more often and perceive more satisfaction. So you’re better off charging monthly rather than a one time fee.
• Anchor Pricing: When consumers are unfamiliar with a product, they will use the highest priced model within a category as an anchor. Private Label brands in the supermarket are a good example of this strategy. They are placed close to the branded product and the price is typically 15% lower.
• Large versus Small Losses: Offer your customers multiple payments of less money. Think QVC (the shopping TV channel) offering items for 4 easy payments of $29.99 which is more appealing than $119.96. This strategy plays well with strategy #2 — multiple payments promote greater satisfaction. So your customers will not only perceive a lower price, but actually appreciate your offering more because they will pay more frequently.