Pricing Strategies That Actually Work

Psychological Pricing

Use psychological pricing to attract potential customers and keep them interested in doing business with you. Convince them that your offer is too good to pass up on. Create different packages with different pricing. Set a high price on the first package and an ideal price on the one you want customers to buy. Ensure they prefer the one you want. Keep them thinking “This is affordable!” Include all the important features and attractively present your package to inspire action. 

If you have a sale, place it next to the original price to inspire action and increase revenue. Set a specific time frame and mention that the offer is available for a limited time only. If you get positive responses or notice that your product is flying off the shelves due to the sale, extend it to another week or month to ensure you reach those who may have missed it.

You can also use a different color on your packages as well as product and pricing information. This is a great way to command attention and pique interest.

Change how prospects perceive the price by charging less or at least making it seem that way. For example, instead of charging $10 for a certain product, charge $9,99 instead. This makes the customer feel they are spending less and accelerates buying decisions.

You can also use penetrative pricing which allows you to set a low price on a highly-priced product or service during the early days and raise it with time. This is great when you are targeting low-paying customers or when you want to raise brand awareness. You will easily grow your audience, prove the quality of your product, and build your brand. The goal is to get people to love and trust your product. You want to give them value for their money at a low price or one that the competition isn’t willing to set. Once you accomplish that, gradually raise your costs until you arrive at the final price. Your customers won’t mind paying you more if they trust your product.

If you recognize that there is too much competition for the kind of service or product you offer, use competitive pricing. It allows you to set your price completely based on what the competition is charging and ensure you stay on top of the game. Find out how much your top three competitors charge for similar services and take a different approach. Set a lower price or provide additional value at the same price. For example, offer free service in place of what the competition charges. If you are a web developer, offer your web design clients free hosting for a year.

Set hourly rates if you are working with new clients and want to ensure you get paid for the number of hours worked. This helps you understand how long a certain task takes before completion and allows you to set your price right. You will be aware of the amount of time and effort required to finish certain projects and avoid underpricing or overpricing.