✌️ Perhaps there is not much controversy about the fierceness of the “battlefield” of business anymore, hundreds of thousands of shops are “joking” customers every day and everyone wants to make as much profit as possible. But the fact is that consumers are more alert, some tricks such as promotions, buy one get one free, etc. They are no longer as effective as a few years ago. So is there a way to improve the situation? Let’s explore some of the price traps that automatically get customers to spend more to shop.✍️🏆🚗💰
1. The “anchor” strategy
2. More options
3. Unusual choices
4. Price trap in each number
👉1. The “anchor” strategy
Before defining this strategy, let’s take a look at how the famous Italian Armani fashion store displays products in their stores to stimulate consumer demand.
Now imagine yourself as a customer who just walked into an Armani fashion store and immediately saw the latest designer t-shirt for $150. At this price, do you think the other shirt is expensive or cheap? It must be quite expensive, right? And then in the middle of thinking, you suddenly see another $75 shirt right behind and $400 jeans next to it.
At this point, not only you, but actually a lot of people have chosen the $75 shirt because most of them think it’s cheaper than the products around, and most of all, it’s still Armani, a famous brand name with the cheapest price. But that’s not the last thing, the most important part is in the back, when you and many people will come back to buy more another $75 T-shirt.
What is the reason?
That is the psychological phenomenon of “anchoring”. Humans tend to rely on the first piece of information provided to make decisions about the next course of action. That piece of information is called the “anchor”, when the “anchor” is set up, other decisions will be adjusted according to it and the interpretation of the surrounding information will also be affected more or less.
In the example above, Armani knows that very few people are willing to pay $150 for a t-shirt or $400 for a pair of jeans, so they put a $75 t-shirt between them to entice customers to buy. shop. Armani puts an “anchor” in the mind of a customer about a cheaper but still branded product, then customers will always remember the $75 t-shirt in the next purchase.
In online business, many people also apply this method to their sales website. Instead of immediately displaying low-priced products as usual, they mixed them with high-priced items to make them more prominent, easier to impress users.
“Anchoring” is a flexible pricing strategy and suitable for many different sectors, it is often combined with arrangement. If you are looking to increase your profits then this is a simple and immediately applicable strategy.
👉2. More options
This is a pricing strategy often chosen by businesses following the subscription model. Their product is usually a package of many sub-products or services used by month or year. Their prices are determined by the size and size of the product package, and for each option there is a different price. When you give customers more options, you can sell them better.
This strategy is often applied in conjunction with the “anchor” strategy. Like the example below, the Candy Club website intentionally impresses customers by adding their target selection in the middle, a larger design with bold borders, and a “Most Popular” sign, right on top.
Targeted options are usually mid-priced, affordable for most people, and therefore drive revenue faster. Many people wonder if in addition to highlighting the target selection, the two options next to it have any other meaning.
Of course yes, with a higher selection it will ensure you do not miss out on high-end customers, the lower option is often used by people with a “trial” mentality. With this pricing strategy, you can scan all objects while ensuring revenue focus.
How to increase profits is always a question in the minds of traders, especially when participating in the fiercely competitive market. In part 1 of the article price traps can withdraw customers money in business, we have learned 2 pricing strategies to help you maximize profits, increase return and conversion rates. when selling on the website. Let’s find out 2 other unique strategies in part 2 below.
👉3. Unusual choices
This is quite an interesting strategy, but before diving in, check out the pricelist image below for a magazine that comes in both print and electronic versions.
Price of the print version is $9.99, and the electronic version also is $9.99. But you choose both versions, total pay is $10.99. Pay attention to it, do you see the unreasonable point of the price list?
Normally, if customers have bought a paper newspaper, they rarely buy more of its electronic version and vice versa, but in front of this price list, most people are more inclined to choose both versions. If the comparison is worse, just spending an extra $ 1 and you have more, then it’s okay not to choose right.
As for the seller’s side, are they making a losing trade? In fact, the cost to switch from paper to electronic version is not much, can even be considered zero, so they are still profitable.
You can apply this strategy when selling products as a set, instead of selling them individually, group them together for a much cheaper price. The larger the difference, the more attractive it is to customers, don’t worry too much about being absorbed in capital, take the profit of this product to make up for the loss of the other product.
👉4. Price trap in each number
Pricing can also “fool” customers, making them feel like they’re being bought at a cheaper price. The most common way is to set odd prices with numbers ending in 9 or 99. For example, between 200$ and 199$ is only 1$ apart but 199$ still “seems” a lot less.
To explain this, it is necessary to rely on the habit of most countries in the world to read from left to right, so the number they see first is 1, not 2, if only at a glance it is easy to misunderstand. Also, $199 is still in the “$100+” range, and $200 is already in the “$200+” range. Below is a study on the correlation between pricing and customer conversion rates published in 2013.
This strategy is widely applied by supermarkets and retail websites, the effectiveness of which should not be discussed anymore. But what few people know is that this strategy does not work with high-end products. Since people willing to buy such products will not notice this small difference, in addition, the retail price also makes the product less luxurious. Therefore, if the item you trade is in the high-end line, the price should be even.