Price fight with competition does not give you sleep? Your product is not selling as well as you expect? Do you think about the price reduction? Before you do it, think about how to use the following ways to increase sales without changing prices!

1. Raise the price!

 

Did you know that Alfa Romeo cars have been seen in Japan for a premium brand for many years? Despite the fact that in Europe they are considered extremely emergency and their prices do not differ significantly from popular brands, the Japanese value them equally with BMW, Mercedes or Audi. Why?
Well, people are not able to assess how much something is worth without comparing prices of the same product in several places. However, if you sell a product that your competition is not on offer (no one produces Alfa Romeo cars except the manufacturer), or only has its alternatives (Ford, Opel, BMW) you can increase your sales … by raising prices!
The higher price of your product compared to competitive, similar products may be encouraging for the buyer. It can confirm your belief in the quality of your product and make you buy.
If, however, raising the price is not an option (or is already quite high in itself), then you can try to show it as lower thanks to two more tricks.
2. Reduce the price perceived by another record
The results of the research described in one of the “Journal of Consumer Psychology” show that the manner in which prices are recorded affects the perception of their amount by potential customers.
It turned out that prices saved without currency symbols, punctuation marks and penny values ​​are perceived to be lower than those that have these elements. In other words, the amount “690″ seems lower than “690.00 PLN”.
3. Reduce the price perceived by using the contrast principle
The principle of contrast has been described in the book of prof. Robert Cialdini from the University of Arizona “Influencing People.” It assumes that a product combined with other, more expensive products seems to be more attractive in price than if it were among products with similar prices.
This trick is sometimes used by sellers who initially offer products that exceed the buyer’s admissible budget so that the price of the other will be more attractive. The same principle is also used in tables comparing the prices and capabilities of products. Usually, the most expensive ones are listed in the tables only to show other products in a better light.
4. End prices with numbers 9, 5 or create prices with different digits
Several years ago, American companies conducted some research in Poland to check how consumers react to prices ending with the number 9. The reason for this research was to check whether the local sales results will be similar to those in the states. The customers mentally rounded the price down, so the price of $ 139 was $ 130 and $ 999 seemed to be well below $ 1,000. But you probably know it and wonder why I’m telling you about it.
Well, the results of research in Poland were definitely different than expected
It turned out that the sale of products whose price was changed so that these ended up at 9 fell! Consumers, not only that they correctly topped up prices, additionally took the valuation method as an attempt to cheat them!
But times are changing.
According to the latest research, there are three ways to record prices in Poland, which may (but need not) increase sales.
The price ending at 9 is no longer perceived as an attempt to cheat and is often rounded down as in other countries.
Prices ending with the number 5 are more often bought and are not received negatively
The mixed entry is also becoming more and more popular, eg “PLN 732.84″ suggesting the calculation of the lowest possible price.
Which option will work in your case? You have to check it yourself.
5. Add an unnecessary option
A few years ago, the following subscription options appeared on the website of the US magazine The Economist by mistake:
The price of electronic subscription – $ 59,
Price of paper subscription – $ 125,
The price of paper subscription along with electronic – also $ 125.
Professor behavioral economics Dan Ariely, interested in such a price list, he contacted the magazine seeking explanations. However, they were not given to him and the middle option disappeared shortly thereafter. The existence of an unnecessary option interested him enough, however, that he decided to test its impact on the shopping preferences of his students. The results will interest you very much.
The first, control group of students received a price list containing only the first and third option. The cheaper of them was chosen by 68% of students and more expensive by 32%.
The test group that received the price list with a useless option had decidedly different preferences. The cheapest option was interested only 16% students (!), No one chose a useless option and the most expensive option was chosen by as much as 84% ​​students!
A series of subsequent experiments only confirmed the change in human preferences due to the addition of an unnecessary option. Below you will find a lecture by prof. Dana Ariely at the TED conference. Start watching from 11: 09min.
6. Do not sell the product only time spent with him
After analyzing 300 advertisements from newspapers and magazines, Prof. Jennifer Aaker and prof. Casie Mogilner from the School of Business
Did you know that Alfa Romeo cars have been seen in Japan for a premium brand for many years? Despite the fact that in Europe they are considered extremely emergency and their prices do not differ significantly from popular brands, the Japanese value them equally with BMW, Mercedes or Audi. Why?

Well, people are not able to assess how much something is worth without comparing prices of the same product in several places. However, if you sell a product that your competition is not on offer (no one produces Alfa Romeo cars except the manufacturer), or only has its alternatives (Ford, Opel, BMW) you can increase your sales … by raising prices!

The higher price of your product compared to competitive, similar products may be encouraging for the buyer. It can confirm your belief in the quality of your product and make you buy.

If, however, raising the price is not an option (or is already quite high in itself), then you can try to show it as lower thanks to two more tricks.

2. Reduce the price perceived by another record
The results of the research described in one of the “Journal of Consumer Psychology” show that the manner in which prices are recorded affects the perception of their amount by potential customers.

It turned out that prices saved without currency symbols, punctuation marks and penny values ​​are perceived to be lower than those that have these elements. In other words, the amount “690″ seems lower than “690.00 PLN”.

3. Reduce the price perceived by using the contrast principle
The principle of contrast has been described in the book of prof. Robert Cialdini from the University of Arizona “Influencing People.” It assumes that a product combined with other, more expensive products seems to be more attractive in price than if it were among products with similar prices.

This trick is sometimes used by sellers who initially offer products that exceed the buyer’s admissible budget so that the price of the other will be more attractive. The same principle is also used in tables comparing the prices and capabilities of products. Usually, the most expensive ones are listed in the tables only to show other products in a better light.

4. End prices with numbers 9, 5 or create prices with different digits
Several years ago, American companies conducted some research in Poland to check how consumers react to prices ending with the number 9. The reason for this research was to check whether the local sales results will be similar to those in the states. The customers mentally rounded the price down, so the price of $ 139 was $ 130 and $ 999 seemed to be well below $ 1,000. But you probably know it and wonder why I’m telling you about it.

Well, the results of research in Poland were definitely different than expected

It turned out that the sale of products whose price was changed so that these ended up at 9 fell! Consumers, not only that they correctly topped up prices, additionally took the valuation method as an attempt to cheat them!

But times are changing.

According to the latest research, there are three ways to record prices in Poland, which may (but need not) increase sales.

The price ending at 9 is no longer perceived as an attempt to cheat and is often rounded down as in other countries.
Prices ending with the number 5 are more often bought and are not received negatively
The mixed entry is also becoming more and more popular, eg “PLN 732.84″ suggesting the calculation of the lowest possible price.
Which option will work in your case? You have to check it yourself.

5. Add an unnecessary option
A few years ago, the following subscription options appeared on the website of the US magazine The Economist by mistake:

The price of electronic subscription – $ 59,
Price of paper subscription – $ 125,
The price of paper subscription along with electronic – also $ 125.
Professor behavioral economics Dan Ariely, interested in such a price list, he contacted the magazine seeking explanations. However, they were not given to him and the middle option disappeared shortly thereafter. The existence of an unnecessary option interested him enough, however, that he decided to test its impact on the shopping preferences of his students. The results will interest you very much.

The first, control group of students received a price list containing only the first and third option. The cheaper of them was chosen by 68% of students and more expensive by 32%.

The test group that received the price list with a useless option had decidedly different preferences. The cheapest option was interested only 16% students (!), No one chose a useless option and the most expensive option was chosen by as much as 84% ​​students!

A series of subsequent experiments only confirmed the change in human preferences due to the addition of an unnecessary option. Below you will find a lecture by prof. Dana Ariely at the TED conference. Start watching from 11: 09min.



6. Do not sell the product only time spent with him
After analyzing 300 advertisements from newspapers and magazines, Prof. Jennifer Aaker and prof. Casie Mogilner from the School of Business
7. Combine the products into sets
Do you know how much a screwdriver with a set of tips, medium-sized hammer, pliers, pliers, screwdriver and tool box costs?

Even if you have worked in Brico Depot for half your life, you can not quickly calculate how much the whole set will cost you. And even if you have made these calculations in advance, you will not want to buy them all separately in different stores (to be the cheapest).

A suitably chosen set of tools may, however, seem to be more than an attractive offer. Despite the fact that the price may be a little higher than if you bought everything in different stores, then such a purchase will be much more convenient. But what if you do not need any of the components? Well, you can always use it in the future or give it to someone as a gift.

Do you need more incentive to start and combine your products into sets?

Combining them, remember only these two important things.

If you combine products with similar prices, make sure that they are from the same category and will be useful to the same person
If you combine products from other categories, one of them must have a much lower price. Then advertise them as a “X product with a Y-gift” and not a set.
8. Create a niche for yourself by appropriately distinguishing the brand and its products
If you think that there is no niche in your market sector or you are not able to do business in them, then … create your own niche.

Distinguished brands and products have such a strong market power that they create their own niches. Depending on the way you want to stand out, your products will choose people who:

they have specific characteristics, social status or behavior
they attract specific product properties
they are looking for specific benefits from using the product
they identify with the brand
If my explanation above is a bit chaotic, read my article about building a distinctive feature of a product or brand (pages not found). You’ll find out everything you need from it.