Is there a strategy behind the way you price your products?
The obvious strategy is usually something along the lines of balancing the need for profit and the desire to appeal to consumers. Around the holidays, it’s often solely the desire to gain attention, or offer the best deal.
But these aren’t the only pricing strategies out there — not by a long shot. This isn’t to say that you shouldn’t be mindful of margins, or consider your competition. But you should be thinking about the psychology of your shoppers, too, and what beyond the lowest price motivates them to click “buy.”
It’s not always what you’d expect. Sometimes it’s the context around the price. Sometimes it’s even the fact that you’ve presented multiple options!
Let’s have a look at some clever product pricing strategies you can use to increase sales online. But first, we’ll dive a bit deeper into why having the lowest price possible isn’t always the best idea.